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
11 November 2025
Supporting sustainable tourism growth in Palau

PSDI worked with the Ministry of Human Resources, Culture, Tourism and Development (MHRCTD); Bureau of Tourism; and Palau Visitors Authority to develop a new sustainable tourism strategy to guide Palau’s tourism development during 2025–2028.

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2 October 2025
Palau Holds Official Launch for Sustainable Tourism Strategy 2025–2028

Palau officially launched its Sustainable Tourism Strategy 2025–2028 (STS) on Monday 29 September 2025. The strategy provides a 4 year roadmap to ensure tourism delivers stronger benefits for Palauans while protecting the nation’s environment and culture.

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27 June 2025
Palau launches new Sustainable Tourism Strategy 2025-2028

Palau’s Ministry of Human Resources, Culture, Tourism and Development launched the new Sustainable Tourism Strategy 2025-2028, developed with support from PSDI

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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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Key Publications
PSDI Annual Report FY2025
PSDI Annual Report FY2025
This annual report outlines how the Pacific Private Sector Development Initiative supported the enabling environment for business and helped foster inclusive private sector-led economic growth in the Pacific during FY2025 (1 July 2024 - 30 June 2025).
Structuring for Success: Models of State-Owned Enterprise Ownership
Structuring for Success: Models of State-Owned Enterprise Ow...
This policy brief argues that defining and separating the various roles of governments can improve governance, reduce fiscal risks, and enable state-owned enterprises to operate with the commercial discipline they require.
PSDI Annual Report FY2024
PSDI Annual Report FY2024
This annual report outlines how the Pacific Private Sector Development Initiative supported the enabling environment for business and helped foster inclusive private sector-led economic growth in the Pacific during FY2024 (1 July 2023 - 30 June 2024).
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.