BY JOHN HOUANIHAU
Opposition Leader Mathew Wale has described the Solomon Islands’ economy as one of the most expensive in the region.
Speaking on the Solomon Islands Democratic Party (SIDP) Youth Podcast, Wale highlighted the high costs associated with essential services and infrastructure.
“This is an expensive economy—unnecessarily expensive. Telecommunication is the most expensive in the region. Electricity is the most expensive in the world. Freight costs from anywhere in the world are the highest in terms of miles or kilometres involved,” Wale said.
He pointed out that key drivers of productivity, such as telecommunications, electricity, water, infrastructure (particularly in productive areas), health, education, fuel, and transportation, all contribute to the high cost of living.
“Freight costs from anywhere in the world are too high. Air services and transportation are just too expensive. Once we tackle fuel prices, it will have a ripple effect on everything else,” Wale stated.
Wale argued that the cost of living could be significantly reduced through legislative measures.
“Why is it so expensive? Because profit margins are excessively high—more than 100%. The first step in addressing the cost of living is questioning why businesses charge such high margins. Why do they need such high levels of profit? They aren’t growing profit through productivity; they are making profits by overcharging customers. This creates a chokehold on the economy because these are essential services,” he said.
He stressed the need for government intervention through legislation to regulate profit margins and bring down the overall cost of living.
Wale also criticized the private sector, arguing that businesses prioritize profit over public needs.
“They don’t respond to public need; they only respond to profit. The government must legislate on these issues to protect consumers,” he said.
As Opposition Leader, Wale reaffirmed his commitment to holding the government accountable and raising critical policy issues to address the economic challenges facing the country.
For feedback, contact:[email protected]
