Mr O'Neill, whose country is home to the Manus Island immigration detention centre, also called on Australia to increase its own humanitarian intake to help tackle the soaring movement of people around the world fleeing persecution and conflict.

Speaking in Japan at the Pacific Leaders Meeting, where he held talks with Foreign Minister Julie Bishop, the PNG Prime Minister told Fairfax Media "we must get the leadership of Myanmar to account" over its treatment of the minority Rohingyas, who form a substantial part of the current Asian migration crisis.

"Leaders in those countries need to be told that people in your community are not being looked after well and we need to work together in addressing that. Countries like Australia and the United States, the UK, and other developed countries like Japan must assist in addressing this crisis," he said.

An estimated 7000 people, some Rohingyas but also many Bangladeshis believed to be economic migrants seeking work, have been stranded on boats on the seas of Asia after some countries refused access to their shores, though Indonesia and Malaysia have since softened their positions.

Prime Minister Tony Abbott has bluntly refused to resettle any of these people, saying "nope, nope, nope" when asked by reporters.

Ms Bishop said last week that Australia had been calling for some time for Myanmar to "respect the rights of Rohingyas" and announced $6 million in extra aid for Rakhine state where most of the minority lives.

Speaking before Mr O'Neill's comments, Ms Bishop told Fairfax Media south-east Asian nations should abandon their reluctance to interfere in each other's internal affairs and tackle the issue of Myanmar's treatment of the Rohingyas.

She reiterated that Australia had "no plans" to take any of the Rohingyas beyond the current refugee intake.

Ms Bishop said the problem needed to be dealt with at its source, which stemmed from the denial of citizenship by Myanmar to the Rohingya minority.

Though she stressed Australia would not interfere, Ms Bishop said,  "Myanmar is a member of ASEAN, and I would assume that this … would be something that ASEAN could have on its agenda as it's a regional issue affecting a number of ASEAN countries."

Members of the Association of South-East Asian Nations, the premier regional forum, have a strict tradition of not interfering in one another's internal affairs.

Manus Island has been used to hold and process boat people who were bound for Australia. Under a deal struck by the former Labor government that has delivered significant aid boosts to PNG, those found to be genuine refugees will be resettled on PNG.

Roughly half - about 500 - have given up and gone home, Mr O'Neill said. He said he expected resettlement to begin by the end of this year.

He said PNG would look at further international requests to resettle refugees on a "case by case basis" but warned "those of us who are accepting refugees cannot continue doing that forever".

"There will be a certain time when we say, no we've had enough and our resources cannot sustain the level of immigration or migrants that are coming through.

"Papua New Guinea is a developing country."

He said Australia should increase its own refugee intake beyond the current humanitarian program of 13,750 places.

"Australia should rethink some of the things they are doing ... Australia should do a bit more in terms of processing of genuine refugees," he said.

After meeting with Ms Bishop in Iwaki, Fukushima prefecture on Saturday, Mr O'Neill also said the stoush over Australia's plans to place a diplomatic mission on the sensitive region of Bougainville was being resolved.

"It was a misunderstanding that has been acknowledged and we will work it through," he said.

The island province is currently laying the groundwork for an independence referendum.