Category: Business

Source: Radio New Zealand

Small businesses are still borrowing and investing, despite the Middle East conflict affecting the economy, according to a specialist lender.

Prospa says loan demand flattened slightly in March as rising fuel prices dented confidence, but overall borrowing was still robust – especially for equipment purchases and for taking advantage of government depreciation allowances before the financial year closes tomorrow.

Managing director Adrienne Begbie said firms were also drawing on lines of credit to boost inventory levels, partly as a hedge against possible transport disruptions, and partly to manage future cashflow pressures.

“People are borrowing off our line‑of‑credit product – you’re only paying interest when you’re using it – so it’s more of a ‘just‑in‑case I need it’ scenario,” she said.

Begbie said Prospa’s approval‑to‑settlement metric – the proportion of businesses actually drawing down approved credit – was sitting above 80 percent, levels she said suggested businesses were confident about investing.

She said arrears on business loans had dropped to low levels, and Prospa’s data showed most borrowers were profitable.

After enduring several crises in recent years, Begbie said small businesses seemed to be taking a more pragmatic view this time around, accepting they can not control global events and instead “looking at themselves and getting on with it”.

These trends suggested small businesses were not battening down the hatches during the fuel crisis.

Begbie said the country needed to be careful not to talk itself into a recession.

“There’s still a lot of activity out there, and I worry the doom‑and‑gloom rhetoric is pulling people down,” she says.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

New Zealand’s tourism industry is feeling the impacts of the Middle East conflict, with businesses experiencing “a sharp increase in business costs“, an industry leader says.

The industry was said to be getting its mojo back in the past 18 months, however the global fuel crisis is making the comeback difficult – from the increases in cost of living, to the cost of travel itself.

Tourism Industry Aotearoa’s chief executive Rebecca Ingram told Midday Report the situation was not ideal, but the industry was used to disruption.

“Whether its earthquakes volcanos that change flight paths, and in this case we’ve got conflict, and it’s times like this we really rally together, we hustle internationally to make sure we stay connected…”

“Many businesses are experiences the sharp increase in business costs as a result of the leap in fuel prices.

“The most obvious price most people think about is jet fuel, but then there’s the jet boats, the lawn mowers that are need to mow all the beautiful lawns and holiday parks and botanic gardens, transport providers, so those costs are feeling pretty squeezy for many.”

Ingram said in a recent survey Tourism Industry Aotearoa, 70 percent of businesses reported experiencing little to no impact.

“What we can see at the initial survey results is that many New Zealanders will have booked and paid for their holidays, but there are some signal some businesses are experiencing cancellations – so 70 percent are saying there is no impact or a small decrease.”

Ingram said it was a “bit of a blessing” that the disruption was happening at the end of the summer season.

But she said one in nine Kiwis had a job in tourism, and the industry would be keeping a “very close eye on the situation in Iran and the disruption that might be possible for the next few months”.

“We will be wanting to work with the government and tourism New Zealand in particular to look at how we can ensure a successful summer 26/27.”

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

Rising fuel and fertiliser costs due to the war in Iran are hitting agricultural aviators are farmers during one of the busiest times of year for applying fertiliser.

Autumn usually sees a flurry of fertiliser jobs for agricultural pilots, as applications could help pastures recover from dry summers and prepare for the cooler months to come.

Global prices for urea, ammonia and nitrogen-based fertilisers soared in the weeks following the beginning of the war in Iran in late-February, as many of the ingredients derived from the Middle East.

However, potash and phosphate fertiliser prices and supply were expected to remain relatively stable through autumn in New Zealand, major player Ravensdown told RNZ in early March.

Agricultural Aviators’ Association executive officer, Tony Michelle said concerns over fertiliser pricing and supply would likely come later in the year.

But he said for fuel, the soaring costs came at the busiest time of year.

Agricultural pilots could use thousands of litres of fuel each week, especially during peak times, he said.

“Everybody’s a bit nervous,” Michelle said.

“In terms of the medium term, our biggest concern is that this is a critical time of year for ag operators and for farmers, in terms of fertiliser application in particular.”

He said most operators were now charging more to cover the cost increases.

“Pricing’s through the roof, and just like everybody in the community, we’re facing significant increases in fuel pricing, which operators have to be able to pass on to the end user. And most operators are doing that through either a fuel surcharge or increasing the hourly rates.

“It’s never an easy conversation.”

Michelle said he hoped agricultural aviators would be included as an essential service to primary production industries in the government’s traffic-light alert system for managing fuel supply risks.

“We had to battle to be seen as an essential service during Covid, and we don’t want to see that happen again,” he said.

“This is an animal welfare issue and government needs to keep that front of mind.”

Further details updated in the National Fuel Plan announced on Friday showed in a phase 3 scenario, if supply were to tighten, the government would work to ensure fuel got to where it was most needed, including for hospitals, fire services and food supply chains.

It said the government may consider introducing purchasing limits based on priority bands, with band B being economically-important services like food supply and primary production during time-critical periods.

Michelle said the agricultural aviation sector had come off the back of a significant downturn with improved positivity recently, but confidence was being dampened now.

“Well, I think regardless of when they smoke the peace pipe, the ongoing effects will continue for quite some time.”

Michelle said aviation was under significant cost pressures, already facing major import issues for parts and engines.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

Small and medium-sized businesses (SME) are on high alert as global tensions put pressure on fuel prices and supply.

A pulse survey by MYOB of more than 230 SME decision-makers indicates high levels of concern about being prepared to mitigate operational and financial impacts of fuel pricing and supply.

More than half (55 percent) of the SME business owners and operators said they were very or extremely concerned about the impact of the Middle East conflict on fuel pricing and supply, while a further 27 percent said they were moderately concerned and 16 percent slightly concerned. Just 3 percent said they weren’t concerned at all.

Six in 10 (61 percent) of those surveyed said fuel was critical or very important to their ability to operate.

Just over half (52 percent) said higher fuel costs hit their business the most through supplier price increases, followed by the costs of the business’s own fleet (47 percent), courier and freight costs (41 percent) and supply chain disruption (30 percent).

MYOB chief customer officer Dean Chadwick said ongoing local customer support will play an important role in helping many businesses manage through the pressures and uncertainty they were feeling.

“This is also a time where broader support can make a real difference. For the wider public who are also feeling the pinch, choosing to support local businesses where possible, paying promptly and recognising the pressures operators are under, can all help SMEs navigate what could be a very challenging period ahead.”

More than a third of decision-makers surveyed were considering increasing prices to customers (37 percent), followed by reducing spending in other areas (35 percent), encouraging team members to work from home or reducing days on site (16 percent), and changing transport or logistics arrangements (16 percent).

Increasing stock levels and reducing operating hours were also being considered by some.

“While the current pressures are outside a business owner’s control, there are still practical steps SMEs can take to stay on the front foot – from regularly reviewing costs and maintaining visibility over cashflow, to having open conversations with suppliers and partners about pricing where needed,” Chadwick said.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

Some KiwiSaver members are waiting months for their hardship withdrawal applications to be processed, as providers struggle with the volume.

Withdrawals from the scheme for financial hardship reasons have increased significantly in recent years.

In February, 4750 people withdrew money because of hardship, up from 4130 in February 2025, but some members have complained about how long the process can take.

Some on social media have said they applied last month and still not had a response.

RNZ surveyed providers to ask how long they typically took.

The country’s biggest provider, ANZ, said it could take up to 20 working days.

“To work within this timeline, we do require the information requested,” a spokesperson said. “It may take longer, if there are public holidays or we need to ask for more information.”

On average, its processing time was within 20 days, even though applications were up 10 percent year-on-year.

Fisher Funds said generally guided clients to allow up to 30 working days for the whole process.

“That’s probably a fair indication of where we are at the moment. November and December were particularly busy, which we expected, and this continues with new challenges hitting the family budget.

“The biggest thing people can do to help is to be thorough in sending through all their supporting documents, as this can really help speed up the first part of the process.”

Koura KiwiSaver founder Rupert Carlyon said his team would typically respond within 2-3 days of receiving an application.

“The biggest issue is the back and forth with clients,” he said. “The problem is that we often need to go back multiple times with clients, which extends out the time frames.

“The applications are not easy and we need a huge amount of information, which is what typically takes the time.”

ASB said its timeframe was for processing within 15 days from when the full application was made.

“We understand delays can happen sometimes and this can add to an already stressful time. The most common reason for delays is due to customers providing incomplete information at the time of submitting their application, so we encourage our KiwiSaver customers who are considering making a hardship withdrawal request to ensure they are providing the most up-to-date and complete set of information and evidence possible.

“Our team can support them with this.”

Milford Asset Management did not want to comment.

DebtFix founder Christine Liggins – who helps several providers, including Milford, with their hardship applications – said applications were usually turned around in a couple of days, when all the information was provided.

Pie Funds chief executive Ana-Marie Lockyer advised people to allow up to 10 working days for a hardship application to be assessed from the point the information was provided.

“In most cases at the moment, applications are being processed within around five working days. Where delays do occur, they are typically due to incomplete information.

“Hardship applications require detailed supporting documentation to ensure the request meets regulatory requirements and sometimes clients need additional time to gather that information.

“We understand these situations can be stressful, so there is a strong focus on processing applications as quickly as possible, once everything needed has been provided.”

SBS Wealth said applications were generally paid out within 15 working days. Westpac said it took eight days to begin an application review.

“The timeline for reviews can vary, from a few days to a few weeks,” Kernel founder Dean Anderson said. “The delays are often due to gathering enough information from the client upfront in order to make an assessment.

“As an industry, we would love to see the centralisation of hardship assessments – ideally handled within WINZ. This would avoid inconsistent decisions and KiwiSaver members trying to shop around for an outcome.

“It would also ensure there is direct wider support, providing full wraparound to the individual to help them with potentially other more accessible avenues for financial support.”

While providers initially assess the application, the final decision is made by the scheme’s supervisor.

One provider, Public Trust, said people understandably wanted fast responses, when they were financially stressed.

“The application process can take time, because of the strict KiwiSaver rules in place and the continued high number of withdrawals providers are managing. We work closely with providers and know they’re working hard to reduce turnaround times.

“As supervisor, we’re involved at the end of the assessment process and, once applications reach us, we return a decision to the provider within a few days.”

ASB said it was worth considering whether a withdrawal was appropriate.

“We understand many Kiwis may be doing it tough at the moment and that applying for a KiwiSaver hardship withdrawal can play a part in managing a challenging financial situation. However, this should only be explored once other options have been weighed up.

“An early withdrawal can have a significant impact on the total KiwiSaver balance a customer will have available to them once they reach retirement. We encourage any customer who’s concerned about their financial situation to get in touch with us early, so we can explore all options with them.”

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

Demand for businesses to buy remains high, with ABC Business Sales seeing a 28 percent increase in sales over the past year to a record of more than 500 deals done.

“While fewer businesses came up for sale, [there is] a clear sign that demand is now outstripping supply,” ABC managing director Chris Small said, adding that more than 27,800 potential buyers expressed interest in businesses advertised for sale over the past year.

He said there were currently 39 confidentiality agreements signed per sale listing, compared to 15 per sale listing three years ago.

“Right now, good businesses that are well prepared are getting strong interest, because there are more buyers than sellers.”

He said some would-be sellers were holding back, concerned about selling into current market conditions, but that was not always a good strategy.

“Interest rates move, banks tighten lending or buyer confidence drops, and the value they were hoping to achieve isn’t there anymore.”

Small said one of the biggest lessons from 40 years in the industry and more than 10,000 sales was that selling a business was rarely just a financial decision – three factors needed to align to achieve a good sale.

“It’s got to work for you personally,” he said. “You want your financials to be at their strongest and you want the market to be at their strongest.

“Conversely to that, if you haven’t had a great year of trading, ultimately, you would be better off waiting, building your profit up and then coming to market, when you’ve got those numbers in a stronger position.”

He said more buyers were looking to buy themselves a job, with a business that could return an annual income of between $200,000-300,000 for one working owner.

“The trend certainly is more people looking… to be in charge of their own destiny and creating their own wealth by being their own boss,” Small said.

“I think it’s just become a bit of a more of a trend over the last 2-3 years.”

He said bigger investors were looking for a business that would be managed by someone else and return an annual profit of a least a million dollars.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

Got questions? RNZ has launched a new podcast, No Stupid Questions, with Susan Edmunds.

We’d love to hear more of your questions about money and the economy. You can send through written questions, like these ones, but even better, you can drop us a voice memo to our email questions@rnz.co.nz.

You can also sign up to RNZ’s new money newsletter, ‘Money with Susan Edmunds’.

I am new to homeownership, and I wondered if you could do a piece sometime on how international conflict influences New Zealand’s mortgage rates and house values.

I am sure there are a few others like me who don’t really understand how an international conflict can influence domestic house prices!?

I can understand why it probably seems weird that something happening on the other side of the world can affect what people pay for their houses in New Zealand.

Here’s a very broad overview of how it works!

Interest rates: The war in the Middle East has disrupted the flow of oil around the world, and pushed up its price. That has made the cost of fuel more expensive. The concern is that this could make a whole range of other things more expensive, too – both in New Zealand and around the world. We use fuel to get things here, and the cost of that will increase, and we use fuel to make and distribute things within New Zealand, too. So prices are expected to rise.

The Reserve Bank’s job is to make sure that prices don’t rise too much. (Other central banks around the world are doing this in their countries, too.)

There is a concern that if prices rise in a sustained way, the Reserve Bank and other central banks may have to start increasing interest rates to try to slow the rate of inflation.

Already, we’ve seen wholesale markets (where banks borrow their money) pricing in the expectation of increases later in the year. So that means home loan borrowers have to pay more.

House prices: Rising interest rates tend to reduce buyers’ willingness to pay higher prices, because their home loans cost more to service. On top of that, this war and the resulting pressure on fuel prices is making a lot of households a bit nervous about how high prices can go, how they’ll cope – all that sort of thing. When people are feeling nervous or uncertain, they tend to be less likely to be willing to make big investments like house purchases – or to compete hard on price when they do.

So those factors combined mean that home loan rates are likely to be higher and house prices are likely to be lower than they would otherwise this year, because of the Middle East war.

How likely do you think it is for any government to remove the option of withdrawing KiwiSaver money to buy a first home?

This is something I’ve heard discussed a bit over the years. New Zealand is a little unusual in allowing people to tap into their retirement savings to buy a house. There are valid questions about whether it’s appropriate.

But I think it would be very politically difficult for any government to take this option away. It’s a big part of how a lot of people get into the housing market, and I can imagine the backlash would be intense. A lot of people have made their savings and investing decisions on the understanding that they’ll be able to use it for a first home.

We do need to improve retirement savings rates for New Zealanders but I don’t think removing the withdrawal option will be top of the list.

How much does each married superannuitant get per fortnight after tax from 1 April?

Couples in which both people qualify will receive $854.08 after tax (assuming the tax code M) a fortnight from April 1.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

Over the course of this week, one of the country’s most well-known retailers has delayed the release of its financial results, not once, but twice.

The moves by KMD Brands – owner of well-known outdoor goods brands Kathmandu and Rip Curl – have been called “unusual” by one investment expert, with questions being raised about what is going on behind the scenes.

Leading up to this week, on 16 March, the dual NZX and ASX-listed firm indicated it was working with investment bank Goldman Sachs to help with its treasury and capital management strategy.

It said “no decision” had been made around measures to raise capital, and it had not reached an agreement on refinancing its long-term debt facilities.

On 18 March, KMD said it intended to release its half-year results on Wednesday, 25 March – a fairly standard announcement by listed companies.

Fast-forward to Tuesday this week, a day before the results were due to be announced, and KMD made another statement to the stock exchange.

This time, it revealed it had rejected a proposal by US firm Stokehouse to de-merge Rip Curl into a separate listed company and then merge it with Stokehouse, saying it created “no value for shareholders”.

Then came results day on Wednesday, and around half-an-hour before the scheduled investor briefing at 10.30am, KMD made another announcement.

“KMD is not presently in a position to release its results as intended today. We expect to release our HY26 Results on Thursday, 26 March 2026 and no later than Friday, 27 March 2026,” the company said.

Just over a couple of hours later, KMD made another statement, revealing its intention to launch a capital raise by way of a placement and AREO.

AREO stands for accelerated renounceable entitlement offer – a fast-tracked offer allowing existing shareholders to buy more shares.

KMD shares were also placed in a trading halt, having last traded at 19.5 cents on the NZX.

Later that afternoon, it gave a few more details about the capital raise.

“KMD has commenced a confidential wall crossing process with select investors. KMD is continuing discussions to finalise the terms of the capital raising,” the company said.

The statement indicated the company had approached a small number of large investors privately.

No result was announced on Thursday and, on Friday morning, KMD requested a further trading halt on the NZX and a voluntary suspension on the ASX until Monday 30 March.

KMD said it was still working on launching the capital raise and finalising terms for a refinancing of its existing bank loans.

“KMD is not presently in a position to make an announcement regarding the capital raise and refinance, as the final details, including pricing, are still being determined. Discussions regarding these matters remain ongoing.”

KMD said those matters needed to be sorted before the half-year results could be finalised.

Unusual move by a listed company – investment expert

Speaking after the initial announcement of the delay, Craigs Investment Partners investment director Mark Lister said the timing was “interesting”.

“The timing suggests that something has caused the company to rethink what it needs or how it will approach this and adjust the timing of what it had in mind,” Lister said.

He said it was hard to know without more detail.

“Whether the company was intending to raise capital at some point and it’s brought that forward, or whether some of the current uncertainty around the world has made it adjust its plans.”

Lister said that while it was difficult to say, it would be “interesting” to see what led KMD to change its plans.

“The timing is unusual – I’m sure KMD Brands didn’t intend to release the result [date] then delay it,” he said.

KMD has been going through a difficult few years amid a sharp downturn in the retail sector.

Last year, the company announced a full-year loss of $94 million, nearly doubling the previous year’s loss of $48m as its margins came under pressure amid tough trading conditions.

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Source: Radio New Zealand

New Zealand-based Canadian billionaire Jim Grenon has increased his shareholding in listed media company NZME, owner of the New Zealand Herald and Newstalk ZB.

A notice to the NZX shows Grenon spending just under $2 million to aquire almost 1.8 percent of NZME, making him its largest shareholder.

His total stake now stands at 19.9 percent, just below the 20 percent threshold that would trigger a compulsory takeover offer under New Zealand law.

Seperately, NZME director and former cabinet minister Steven Joyce has almost doubled his shareholding to just over 100,000 shares.

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Source: Radio New Zealand

Heinz Wattie’s will proceed with plans to close manufacturing sites in Christchurch, Dunedin and Auckland, as well as the frozen packing lines in Hastings.

This would see a discontinuation of its frozen vegetables, coffee and dips businesses.

MORE TO COME…

– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand