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 a new Corporations Bill, and development of an online business registry;

  • Develop a state-owned enterprise policy; and

  • Support reform through advocacy and analysis, including assessments of Palau’s private sector published in 2007 and 2017.

Resources and Spending

Almost 70% of the $931,373 committed to Palau since 2007 supported financing growth and Business Law Reform initiatives. This funding largely went towards secured transactions reform, which culminated in the launch of an online registry in 2013, work to strengthen the commercial orientation of the National Development Bank of Palau, and the development of a new Corporations Bill.

Palau2007 2019 web

On this website, $ refers to US dollars unless otherwise stated.

For detailed information on PSDI activities in Palau, download the April 2020 PSDI Country Overview here.

Palau at a glance

New Corporations Bill

PSDI has supported the preparation of a new corporations bill, which was passed by the House of Delegates in 2018, and is now being considered by the Senate Committee.

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.
Latest News
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Act in Palau will modernize and simplify business start-up and operation requirements by eliminating unnecessary and outdated formalities.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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23 February 2017
Private Sector Assessment for Palau: High-end Tourism Best Option for Economic Growth

Strong economic growth is masking urgent infrastructure and environmental challenges that threaten the long term sustainability of Palau’s economy, says our private sector assessment published today. Private Sector Assessment for Palau: Policies for Sustainable Growth warns that the rapid growth of low-end tourism could damage Palau’s famed natural environment and World Heritage sites, which are pivotal to maintaining tourism as the country’s leading source of revenue. The report was launched by the President...

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Key Publications
Palau | Pacific Tourism Sector Snapshot
Palau | Pacific Tourism Sector Snapshot
This tourism sector snapshot for Palau provides an overview of the tourism sector before the COVID-19 pandemic and identifies new and existing challenges and opportunities for the tourism industry.
Looking Forward Vol. 1: Evaluating the Challenges for Pacific Tourism after COVID-19
Looking Forward Vol. 1: Evaluating the Challenges for Pacifi...
This PSDI tourism sector assessment provides an overview of Pacific tourism before the COVID-19 pandemic, identifies challenges, and provides recommendations for a sustainable post-pandemic recovery.
Leadership Matters: Benchmarking Women's Business Leadership in the Pacific
Leadership Matters: Benchmarking Women's Business Leadership...
Leadership Matters: Benchmarking Women in Business Leadership in the Pacific collects and analyzes data on women’s representation on boards and in senior management in the 14 Pacific developing member countries of the Asian Development Bank.
PSDI Annual Progress Report FY2019–2020
PSDI Annual Progress Report FY2019–2020
This report gives an overview of PSDI activities from July 2019 to June 2020.
Pacific Retirement Funds: Anchoring Social Protection in Good Finance
Pacific Retirement Funds: Anchoring Social Protection in Goo...
This paper aims to assist policymakers to clarify the role of Pacific retirement funds—particularly any financing role,
Government-Owned Banks: Their Role in Pacific Financial Systems
Government-Owned Banks: Their Role in Pacific Financial Syst...
This paper aims to assist policymakers in addressing questions around government ownership of banks while highlighting the need to increase private participation in most Pacific financial systems, for these systems to meet the financing needs of businesses.