Australia Presentation, Ambassador Gerald Thomson and David Campbell


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Australia - New Zealand Business Seminar, 17.9.2013

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Australia Presentation, Ambassador Gerald Thomson and David Campbell

  1. 1. Australia Gerald Thomson, Ambassador of Australia Australia-New Zealand Business Forum Helsinki, 17 September 2013
  2. 2. Australia key facts Economy US$1.5 Trillion GDP o 4th largest in Asia Pacific region o 80% services economy Population 22.9 million Culture Multicultural, multiracial, multilingual Aboriginal heritage Geography World’s 6th largest country o 7,682,300 sq km o coastline 36,735 km long Climate Temperate – but varied Political Environment Democratic / Westminster system Federation formed in 1901 Three tiers of government o Commonwealth o 6 States and 2 Territories o Local government Australia – means opportunities
  3. 3. • Australia’s economy has experienced 22 years of continuous growth. • USD 1.5 trillion economy; 12th largest in the world. • Relatively low unemployment. • Low interest rates and inflation. • Public finances in good shape. • AAA sovereign credit rating by S&P, Moody’s and Fitch. • High rates of savings and investment. Australia: strong growth, sound fundamentals Australia – means opportunities
  4. 4. Diverse economy Australia – means opportunities
  5. 5. Resilient economy; positive outlook . IMF predicts 3.1% annual-average-real GDP growth for Australia from 2013 to 2018; the highest anticipated growth among the major advanced economies Australia – means opportunities
  6. 6. Strategic location
  7. 7. Australia – means opportunities Connected to Asia
  8. 8. • Conservative government elected 7 September 2013. • Led by Prime-Minister-elect, Tony Abbott MP. • Key priorities: – Budget surpluses and reduced government debt – Improved productivity and competitiveness – Lower taxes – Regulatory reform; reduced red-tape – Reprioritisation of expenditure to fast-track key infrastructure projects – National broadband network – Direct action on climate change. New government Australia – means opportunities
  9. 9. Australia means opportunities David Campbell Senior Trade & Investment Commissioner, Western Europe
  10. 10. Growth With 22 years of uninterrupted growth, Australia’s diverse economy is set for continued expansion, creating opportunities for investors in a low-risk environment with strong connections to Asia’s economic dynamism.
  11. 11. Business Australia makes it easy to do business in one of the world’s most transparent and well-regulated business environments.
  12. 12. Innovation Australia’s proven track record and commitment to world-class innovation makes it the ideal location to develop new ideas and bring them to life.
  13. 13. Long track record in world class innovation Australia – means opportunities Source:
  14. 14. Australia – means opportunities Australians are early adopters 14
  15. 15. Highly quality scientific research 1 5
  16. 16. Growing investment in research & development Australia – means opportunities
  17. 17. • Boeing 22 year partnership with the CSIRO • Bayer collaboration with the CSIRO to develop a new generation of crops • Canon 20 years of R&D in Australia with the CSIRO, USydney and UNSW • IBM collaborating with the UMelbourne developing sequencing technology using supercomputers • GE an R&D alliance with the CSIRO to address global challenges - aging population, water conservation and clean technologies Major foreign companies are engaged Australia – means opportunities
  18. 18. Opportunities
  19. 19. Australian Major Resource Projects Australia – means opportunities
  20. 20. Australian Mining Investment Australia – means opportunities
  21. 21. Australia – means opportunities
  22. 22. Oil and Gas in Australia • Unconventional Gas – Large, untapped reserves of shale and CSG – Estimated shale gas resources sufficient to meet domestic gas usage for 400 years – Proven plus probable reserves of CSG estimated at more than 130 years of production life • Oil and Conventional Gas – $28 billion (annually) industry contributes 58 per cent of domestic energy – 7 “mega” LNG projects committed and over 29,000km of pipeline – LNG, gas and petroleum account for over 70 % value of committed projects – world’s third largest exporter of LNG – LNG exports projected to increase threefold by 2016–17 Australia – means opportunities
  23. 23. Australian Natural Gas Resources Australia – means opportunities
  24. 24. Australian LNG Expansion Australia – means opportunities 0 10 20 30 40 50 60 70 Australia Algeria USA PNG Angola Indonesia Mt Source: BREE
  25. 25. Australian LNG Exports Australia – means opportunities 0 12 24 36 48 60 0 20 40 60 80 100 2002-03 2005-06 2008-09 2011-12 2014-15 2017-18 2012-13 $b Mt exports value (real) QCLNG Gorgon Gladstone APLNG Wheatstone Prelude Ichthys
  26. 26. Opportunities & Gaps Australia – means opportunities • Subsea & Marine • Geotechnical/geophysical surveying • Engineering • Processing • O&M vessels • Unconventional Gas • Exploration • Pipeline development • Onshore drilling rigs • Engineering, Design & Fabrication • Operations & Maintenance • Logistics & Transport • Monitoring, Testing & Lab Services • Emergency Response & Safety • R&D Image Courtesy of Woodside
  27. 27. Infrastructure in Australia • Public Infrastructure – A National Infrastructure Construction Schedule – Roads, rail, ports, airports and social infrastructure – Private financing for 25 years • Strong Fundamentals – Population growth – High urbanisation rates -> congestion – Freight transportation growth – Aging population • Freight projections to 2030 – Truck traffic to grow 50% to 8.5 billion kms – Rail freight to grow 90% to 445 billion tonne kms – Shipping containers to increase by 150% to 15.4 million – Air freight to grow over 100% to 11.4 billion tonne kms Australia – means opportunities
  28. 28. Community & Industrial Energy Demand Source: AECOM, BREE, Geoscience Australia Off-Grid Western Australia Off-Grid Northern Territory Off-Grid Queensland Off-Grid Australia Industrial; 79% Community, 21% Industrial; 89% Community , 11% Industrial; 41% Community ; 59% Industrial; 89% Community; 11% Australia – means opportunities
  29. 29. Australia is a leading digital economy in the Asia-Pacific
  30. 30. A leading digital economy • Total ICT market expected revenue worth in excess of A$131 billion1 • A$63 billion ICT industry expenditure2 (2013f) • 2nd in the Global Cloud Computing Scorecard • ICT and Digital Developments – The 802.11 technology behind Wi-Fi – Open Kernel Labs Software deployed in over a billion mobile phones – The Ultrasound Scanner – Google Maps • Opportunities in the digital sector within: – Cloud computing and digital infrastructure – Automation, simulation and visualisation – Advanced ICT R&D Growing Australia’s Digital Economy – National Broadband Network – R&D tax incentive & strong intellectual property protection • National Digital Economy Strategy (1) IBSA Environmental Scan 2013, footnote 7; (2) Witsa Digital Plannet 2010 Australia – means opportunities
  31. 31. Australia is a leading ICT and digital economy in the Asia-Pacific and globally. Latest rankings have Australia as: 1st 1st 2nd 3rd Australia is consistently ranked as a leading digital economy in the Asia-Pacific most e-ready economy in the Asia-Pacific (sixth globally)1 in ICT infrastructure in the Asia-Pacific (eighth globally)1 in the Global Cloud Computing Scorecard (behind only Japan)2 which measures readiness of countries to support the growth of cloud computing in the Asia-Pacific digital economy rankings (ninth globally)3 1. Economist Intelligence Unit, E-readiness (latest release, 2009) 2. Business Software Alliance (latest release, 2012) 3. Economist Intelligence Unit, Digital economy rankings (latest release, 2010) Australia – means opportunities
  32. 32. Australia has developed a sophisticated user base for digital technology Australia embraces digital technology and has a reputation as an ‘early adopter’: • Australian businesses are world leaders in integrating enterprise and consumer technology, enabling business functionality on employee devices1 • Australia invests more in digital marketing than any other country in the Asia-Pacific2 • Australians buy online more frequently than any other online shoppers (25 per cent of Australian online consumers buy weekly)3 • Australians are the world's second most avid internet searchers for information about consumer products3 1. Dell Research (January, 2013). 2. Chief Marketing Officer (CMO) Council and Adobe Systems Dashboard Report 2012 (November, 2012) 3. Swinburne University of Technology 4. ACMA, Australia’s Progress in the Digital Economy, June, 2012. “Australia has been an early adopter… when Yammer’s sales team came out here from the US, they were struck by the maturity of questions from clients” - Simon Spencer, Managing Director, Yammer Asia-Pacific (2011) Financial services, 27% Manufacturing, industrial and retail, 25% Government, 18% Other corporate, 16% Energy and resources, 9% Households, 5% Major market segmentation of Australian cloud computing 4 Australia – means opportunities
  33. 33. Australia has experienced significant growth and the ICT sector continues to gain in sophistication • The total ICT market value in Australia is worth in excess of $131 billion (by revenue).1 • In the five years to 2010, the ICT sector’s annual growth rate averaged 8.5 per cent, outstripping the USA, UK, Japan, South Korea and Taiwan. 2 Australia’s ICT spending has grown significantly and is poised for growth 1. IBM and IBISWorld, A Snapshot of Australia’s Digital Future to 2050 2. Gartner, November 2012. “Already in 2012, ICT, enhanced by emerging high-speed broadband and online information, is expected to deliver [annual] revenue of $131 billion in Australia… by 2050, this new utility will generate around $1 trillion in [annual] revenue. Today… the value of the internet to the Australian economy rivals iron-ore exports.” - IBM and IBISWorld, A Snapshot of Australia’s Digital Future to 2050 Australia is expected to see significant growth in the digital economy: • Real IT spending is forecast to increase by 3.2 per cent in 2013 to reach $75.5 billion (IT expenditure by Australian Companies).2 • Spending on public cloud services in Australia is forecast to reach $2.9 billion in 2013, a 22.3 per cent increase from 2012.2 • A diverse range of major Australian industries and consumers buy cloud services (see chart), with cloud spending expected to have a compound annual growth rate of 17.3 per cent from 2011 to 2016.2 Australia – means opportunities
  34. 34. The National Broadband Network (NBN) will deliver the world’s largest high speed broadband network “I consider this [the NBN] to be a stunning investment in infrastructure that in my view will have very long term benefits. Infrastructure is all about enabling things and I see Australia trying to enable innovation. I’m excited by this … we already know that networking has produced serious value in terms of businesses and personal income. It just creates opportunity.” - Vint Cerf, Vice President and Chief Internet Evangelist, Google Inc. • The Australian Government is investing up to $43 billion over eight years to build and operate a new, high-speed National Broadband Network • NBNCo was established in 2009 to build and operate the network, which will serve 100% of Australian businesses and homes, covering the whole country, though: – fibre (serving 93% of premises) – fixed wireless (serving 4% of premises), and – satellite (serving 3% of premises). • The network will be capable of delivering speeds up to 1 Gbps. • The NBN will significantly expand e-commerce and Australia’s digital economy, and further grow the ICT sector in operations, testing, support and R&D of the network and of broadband applications. Australia – means opportunities
  35. 35. Australia provides tailored support to investors
  36. 36. Austrade, in cooperation with state and territory governments, provides free and confidential assistance to investors › National coordination of Australian government investment services › Information on the Australian business and regulatory environment › Market intelligence and investment opportunities › Identification of suitable investment locations and partners in Australia › Advice on Australian government programs and approval processes
  37. 37. Want to learn more?