Palau's president has spoken of the need to make the country more investment friendly during his annual State of the Republic address.
The Pacific Daily News reports Johnson Toribiong saying Palau needs to create an economy capable of providing jobs because too many young people are leaving to seek opportunity overseas.
He talked about efforts to streamline foreign investment regulations to help turn around the stagnant economy.
But the president has urged Palau's legislative body, the Olbiil Era Kelulau, to pass a bill he introduced two years ago which he says would encourage foreign investment.
The government remains the largest employer in Palau with more than 2,000 workerrs, or ten percent of the population.
The President says building a stronger private-sector economy is essential and he's emphasised the crucial role that an improved education system must play in this.