Palau

In Palau, PSDI is supporting reforms that will help create an enabling environment for strong, sustainable private-sector led growth. 

PSDI is working with the Government of Palau to:

  • Support the commercial strengthening of the government-owned National Development Bank of Palau;

  • Develop a secured transactions framework, including the launch of an online securities registry, and providing ongoing support to lenders;

  • Modernize business laws and registration processes, including the preparation of the Corporations Act, 2021, and development of an online business registry;

  • Reform Palau's state-owned enterprises, including the development of a PPP Policy and Transparency Guidelines, SOE Policy, amendments to the Palau Public Utilities Corporations Act;

  • Develop a Sustainable Tourism Strategy to guide sector development for the next 5 years; and
  • Support women's economic empowerment through advocacy and analysis.

For detailed information on PSDI activities in Palau, download the 2025 PSDI Country Overview here.

Palau at a glance

New Corporations Act

PSDI supported the preparation of the new Corporations Act, 2021, which paves the way for an online corporations registry.

Secured transactions reform

Palau’s Secured Transactions Act passed Parliament in May 2012, and an online registry was launched in January 2013.

State-Owned Enterprise Policy

PSDI supported the development of a state-owned enterprise policy for Palau that was endorsed by the President in late 2014.

Women’s Business Leadership

Comprehensive country-level data and analysis published in two PSDI flagship reports.
Latest News
5 June 2023
Commercial focus crucial for Palau state-owned enterprises — ADB report

The absence of a clear commercial focus and monitoring framework for Palau’s SOEs has complicated efforts to improve their financial performance, according to ADB PSDI's Finding Balance 2023 report.

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18 November 2021
PSDI Experts address Palau Economic Symposium

Three PSDI Experts have given presentations to the Palau Economic Symposium, hosted by the country’s Ministry of Finance and focused on new pathways to economic growth.

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1 November 2021
Palau has a new Corporations Registry law designed to modernize

MARIANAS BUSINESS JOURNAL: A new PSDI-supported Corporations Act in Palau will modernize and simplify business start-up and operation requirements by eliminating unnecessary and outdated formalities.

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21 October 2021
ADB welcomes new Corporations Act to boost business in Palau

The Asian Development Bank (ADB) has welcomed the passing of a new Corporations Act in Palau which will make it easier and faster to start and run a business.

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21 October 2021
New, PSDI-Supported Corporations Act to Modernize and Streamline Business Start-up and Operations in Palau

A new, PSDI-supported Corporations Act will make it easier and faster to do business in Palau.

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30 April 2021
Strengthening the Financial Position of Pacific Government-Owned Banks

PSDI works with government-owned banks in the Pacific to strengthen their financial positions and increase their ability to provide much-need finance to Pacific businesses.

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Key Publications
PSDI Country Overviews 2024-2025
PSDI Country Overviews 2024-2025
These fact sheets provide an overview of PSDI activities in each country to 2025.

PSDI Annual Report FY2023
PSDI Annual Report FY2023
This report gives an overview of PSDI activities from 1 July 2022 to 30 June 2023.
Leadership Matters 2024: Benchmarking Women in Business Leadership in the Pacific
Leadership Matters 2024: Benchmarking Women in Business Lead...
This is the second edition of the Leadership Matters series, which collects and analyzes data on women’s representation on boards and in senior management in 14 Pacific countries.
Unlocking Potential: A Gender Inclusive Private Sector Framework for the Pacific Report and Country Assessments
Unlocking Potential: A Gender Inclusive Private Sector Frame...
The Gender Inclusive Private Sector Framework serves as a practical checklist for Pacific governments and institutions to measure progress and identify areas where further improvements are needed.
Innovative Financing Mechanisms in the Pacific
Innovative Financing Mechanisms in the Pacific
This paper examines the potential benefits and issues to consider around implementing Innovative Financing Mechanisms in the Pacific, which can lower barriers and provide more options for businesses seeking finance.
PSDI Annual Report FY2022
PSDI Annual Report FY2022
This report gives an overview of PSDI activities from July 2021 to June 2022.