The AJBCC is again pleased to host a webinar to launch the seventh annual Japan-Australia Investment Report produced by Herbert Smith Freehills and the Australian National University, analysing the prevailing trends driving the investment relationship.
Based on another in-depth analysis of Japan-Australia M&A transactions and partnerships in Australia, the Report encapsulates findings and insights on investment trends that defined 2023, and also identifies key drivers for the future including predictions for the trajectory of the Japan-Australia relationship for 2024 and beyond.
There has been a further deepening of the Japan-Australia relationship in 2023, as ‘partners in prosperity’, during a period of growing international turbulence. Like any partnership there are challenges but tackling these together amidst continued changes in the global geopolitical environment have brought the two countries closer together as indispensable economic partners, particularly in the mutual pursuit of the energy transition to net zero by 2050.
Inbound Japanese M&A saw a record 53 transactions during 2023 with total Japanese direct investment into Australia increasing to a record $133.8 billion. Investments occurred across a broad number of sectors including real estate, energy, technology, financial services, consumer goods, infrastructure, housing, and services. 2023 reinforced the common understanding that Japanese capital and know-how will remain a crucial driver of Australian economic growth, employment, and the ability to export across most sectors.
In this context, partnerships have also continued to flourish as the “third paradigm” for Japanese investment into Australia. A total of 38 partnerships were announced in 2023, building on a total of over 150 bilateral partnerships announced since 2019. Several of the “new energy” partnerships are now progressing to proof of concept and implementation phase as the underlying projects aim for commercialisation by 2030.
It is an exciting time for the resilient Japan-Australia investment relationship. The depth and breadth of this complementary partnership is more evident than ever before with expanded government support, bilateral cooperation, and business collaboration.