By postcourieronline
Copyright postcourier
Palau has strong potential to expand investment, particularly in tourism and local industries, but experts say infrastructure gaps and high costs must be addressed first.
Renowned economist Dr Naoyuki Yoshino highlighted both government and private investment opportunities in the country, especially as tourism links with Japan continue to grow.
“Palau itself has to think about what will be the best investment,” Yoshino said.
“There are two kinds of investments. One is infrastructure, which should come from government, and another is private investment, such as hotels, resorts and so on.”
Among infrastructure priorities, Yoshino emphasised extending the airport runway to accommodate larger airplanes.
He also stressed that infrastructure projects must benefit private businesses along new roads, pointing out the lack of coffee shops, souvenir stores, and restaurants near key routes.
On private investment, Yoshino identified fishing processing, agriculture, and tourism-related services as high-potential areas.
He also suggested channeling domestic savings into the National Development Bank of Palau (NDBP) through savings bonds, lowering high interest rates that currently hinder small business and housing loans.
“Most important for Palau is to decide what businesses will grow and benefit the local population, rather than relying solely on outsiders,” he said.
High labour and utility costs present additional challenges. Yoshino recommended adopting digital technologies and automation, such as robots in hotels and restaurants, to reduce costs and compensate for labour shortages.
“IT technologies should be combined with new investments to reduce costs and attract more people,” he said, highlighting examples from Japan where automation handles check-in, food delivery, and other services.
Yoshino’s insights suggest that strategic infrastructure development, support for local private investment, and technology adoption could help Palau expand its economic opportunities while creating jobs and supporting sustainable growth….PACNEWS
