The federal government needs to assist our major banks re-engage with PNG

China has been showing an interest in the PNG banking and finance sectors. So far, the presence has been relatively minor.

Last week Prime Minister Marape issued a long statement urging the Bank of China to establish a substantial presence in PNG - including retail banking.

I suspect China won't need much encouragement to do so!

That won't be in the Australian national strategic interest.

The cost to the government of providing some encouragement should not be great.

But I believe it is necessary.

At the same time the government could well look at the status of our banks in important regional neighbours such as Fiji.

I believe engagement with our private sector, neglected by the former coalition government, ought to be a priority. Banking and finance services should form part of that strategy.

We cannot stop China getting more involved in banking and finance in PNG but competition is vital.

Australia remains the largest private sector investor in PNG.

It needs to remain so.

The visit by PM Albanese is welcome. He will be warmly received.