Most large infrastructure and utilities services are supported by either FSM or State Governments. Services such as electricity supply, fuel supply, roads, ports and airports are all government owned and managed, although private contractors manage some of the services such as stevedoring and freight handling
Other than in the state capitals few retail and business services exist. Almost all goods are imported into FSM except for fish and coconut products. The retail and business sector relies on the import of goods from China, Taiwan, Korea, the United States and Australasia.
The retail sector consists on several multi sectored supermarkets providing items from food, clothing kitchenware, white goods, sport goods, office supplies and hardware. There are a limited number of larger, locally owned retail outlets.
There is a total reliance on imported goods. Goods are relatively expensive and small local convenience stores are scattered throughout the communities supplying small items for daily use.
Small entrepreneurs operate niche services and stores based on importing goods ranging from computers, clothing, stationary supplies and boat motors, to beer, to engine oil.
There are a number of National and State projects underway to upgrade port and airport infrastructure with support from various external organisations such as the World Bank, Asian Development Bank, Japan and USA governments. Completion dates range from 2 to 5 years and are aimed at enhancing the current internal logistics infrastructure.