Transparency International Papua New Guinea says the spate of violence against Asians in the country highlights the need for a clear definition of where PNG's localisation priorities are.
Anti-Chinese violence erupted in the capital Port Moresby and Lae last week and by the weekend had reignited in Madang Province and has since spread to the Highlands.
TI PNG's Peter Aitsi says the violence reflects frustration among nationals over the lack of opportunity for them in business.
He says there is a requirement within the Investment Promotion Act for government to see local people engaged in business activities but it hasn't always happened that way.
"Because of the deteriorated state of our public service and the inability of the public service to regulate the business climate within PNG, we're seeing people take advantage of this. And I say Papua New Guineans as well as some overseas citizens - we're seeing people take advantage of the situation and so out of that we're now seeing the frustrations of our communities sort of boil over."
Peter Aitisi.