Timor-Leste Formalizes Manufacturing Push to Diversify Beyond Oil
With Bayu-Undan offshore oil revenues in structural decline, the Government of Timor-Leste is advancing an industrial diversification strategy. On June 19, the Council of Ministers approved a draft Government Resolution establishing the National Action Plan for the Manufacturing Industry. His Resolution will prioritize the processing of domestic agricultural, forestry, and fisheries products with export potential alongside business environment reform and expanded access to finance. It will create an inter-ministerial commission to coordinate implementation.
The approval follows a multi-year consultative process before PM Gusmão broke ground on a multi-million-dollar industrial park in Manatuto in March 2026, signaling government commitment to creating the physical foundations for manufacturing growth. The combination of a government-backed industrial policy, a new ASEAN market access framework, and active pursuit of foreign investment creates an early-mover window in sectors such as agribusiness, light manufacturing, and logistics.