The continued importance of the Asia-Pacific region as a source of world economic growth means Australia is a strategic location for business opportunities in Asia.
Australia is well placed to capitalise on growth in China and India. Its relative proximity to these two countries, plus already strong trade links, mean that Australia’s geographic location now represents a significant asset.
Unique advantages
Australia's geographic location also presents unique time zone advantages in the Asia Pacific, allowing companies to benefit from 'follow-the-sun' or 'pass-the-book' operations such as transaction processing in financial markets, help desks, customer service, IT support and other critical services.
When it is 9am in Sydney, it is 5pm in New York; when it is 12 noon in Sydney, it is 9am in Shanghai, and when it is 6pm in Sydney, it is 8am in Frankfurt.
Australians start work before their US colleagues go home, then have an early-start advantage over colleagues in Japan, China, Singapore and India. And they are at the end of their working day when the Europeans clock on.
Many companies around the world are taking advantage of these crucial time links. For example, Australia's time zone advantage encouraged DSTi, a UK based investment management and portfolio accounting software developer to offer 24-hour global customer support from its Australian office.
"Being able to fix a European or North American client's problem overnight and have a solution available for them first thing in the morning has some real appeal," says Ian Mathieson, Chief Executive Officer for DSTi in Australia and New Zealand.
Australia’s counter-seasonality to the northern hemisphere also offers significant strategic advantage in food production and agri-business.
Trade links
Australia’s traditional trade with Europe and North America is augmented by our rapidly growing trade with Asia. China and Japan are now the country’s top two-way trading partners, followed by the US and the UK and the country has strong trading links throughout Asia.
Confident of its international competitiveness, Australia has pursued Free Trade Agreements with many of its regional partners and has agreements in place with Chile, New Zealand, Singapore, Thailand and the United States. Australia has also either concluded – or is in negotiations with – the ASEAN group of countries, China, the Gulf Cooperation Council, Japan, Malaysia and the Trans Pacific Partnership.
Networks
Advanced transport and communications networks provide Australian-based companies with an edge in servicing Asian markets quickly and effectively.
For example, sea freight services between Australia and most Asian ports are regular and direct. A sailing between Sydney and Shanghai can take as little as 13 days, whereas the average between Shanghai and Germany is 26 days. Currently, more than 10 shipping companies offer weekly sailings to China, leading to highly competitive export rates*.
Similarly Australian air freight services to most major Asian cities are direct. As a result, complete transit times are low: air freight services from Australia to Asia are typically twice as fast as from North America to Asia.
India's biggest global outsourcing companies - such as Satyam Computers, Tata Consulting Services and Wipro Technologies - have established offices in Australia in large part to service US and European clients.
*Import rates are also competitive, but higher, owing to a greater demand for import freighting. They are also more subject to fluctuation during peak seasons such as Christmas. |