Part Two
Performance reporting
Outcome 1
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Advance Australia’s trade, investment and education promotion interests through information, advice and services to business, the education sector and governments
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Program 1.1: Trade, education and investment promotion
Objective
Austrade will advance Australian trade, investment and international education interests by identifying and presenting international opportunities and delivering practical in-market support, advice and insights to Australian businesses and education institutions.
Deliverables
- Identify foreign business opportunities for Australian firms, particularly in growth and emerging markets that offer commercial potential and align with Australian capability; where there are difficulties accessing distribution channels and commercial connections; and where the value of the badge of government is highest.
- Deliver market-related services, advice and information to assist Australian firms in international business.
- Work with Australian Government agencies, and state and territory government agencies, to assist in achieving Commonwealth policy objectives as they relate to the promotion and attraction of productive foreign direct investment.
- Contribute to the growth of a sustainable international education sector through marketing and branding (Future Unlimited) of Australian education and training services in all markets in which Austrade is represented.
- Build linkages and networks with key decision-makers, buyers, investors and institutions, and facilitate access to senior officials and business executives in international markets, and assist Australian firms and education institutions with ‘behind the border’ barriers to trade and outward investment, consistent with legal obligations including anti-bribery laws both in Australia and overseas.
- Promote Australia’s nation brand, Australia Unlimited, in target markets to advance Australia’s image and reputation across a wide range of fields, including business, technology, science, education and creative industries.
- Strengthen online information and service delivery and build stronger, more targeted partnerships to achieve a more contemporary approach to service delivery.
- Assess applications for the income tax exemption available under section 23AF of the Income Tax Assessment Act 1936, to assist the international competitiveness of Australian companies and government organisations competing to win international tenders.
- Draw on Austrade’s global, commercial perspective to provide advice to government.
| Performance measure | Outcome |
|---|---|
High-potential international trade opportunities identified and presented to Australian businesses and education institutions. |
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Number of Australian businesses and institutions provided with practical in-market services and advice. |
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Australian business community and education institutions’ satisfaction with Austrade’s services. |
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Austrade’s Trade Commissioners
Qualities required in a Trade Commissioner
Trade Commissioners join Austrade’s international team from a wide variety of professional backgrounds in business, government and education and with strong records of achievement in their fields. During 2012–13, Austrade re-established the Trade Commissioner Development Program, which fosters younger professionals, both from within Austrade and externally.
Austrade deals with both government and business, and Trade Commissioners need to understand the setting for Austrade’s work—the international markets they operate in, as well as the decision-making processes of governments in those markets and the government role in establishing regulatory settings. Trade Commissioners also need to understand the Australian political system, government policy-making and federal and state relationships, and be able to contribute to the Australian Government’s priorities in trade, investment and education promotion.
Trade Commissioners need to bring a strong understanding of the Australian business scene and the dynamics of the markets in which they operate, and provide relevant and valuable insights and advice on doing business in their market. International experience, knowledge of local markets, and language proficiency, where relevant, are also important attributes of a successful Trade Commissioner. As representatives of Australia, Trade Commissioners contribute to Australia’s public diplomacy. They have to be able to communicate with people from diverse backgrounds and places, and are expected to be able to motivate and lead a team (or teams) of overseas-engaged staff.
Trade Commissioners are expected to develop strong relationships at a senior level across business and government in their host country. They need to maintain productive professional and supportive relationships with the local Australian business community, other federal and state representatives and key industry associations active in the market. Austrade’s in-market teams work closely with Australia’s Ambassadors, High Commissioners and Consuls-General who lead the official Australian presence in most markets.
Diverse locations and work
Austrade’s in-market teams carry out a diverse range of work, which can differ quite widely from office to office. Below are snapshots of some of Austrade’s Trade Commissioners around the world, and the work they do.
Crispin Conroy
Senior Trade Commissioner, Bogota
In Latin America: Colombia is the site of one of Austrade’s newest offices. Consul-General and Senior Trade Commissioner, Crispin Conroy, was posted to Bogota in 2012. In addition to his local responsibilities, he has oversight for teams in Chile, Peru and Argentina.
The Australian business community has a strong interest in Latin America, especially in the mining and education sectors. As in many emerging markets, the badge of government provided by Austrade is sometimes critical to business success. Much of a Trade Commissioner’s focus is on building relationships with governments and businesses in the region in order to introduce key decision-makers in the public and private sectors to Australian expertise.
Anthony Weymouth
Senior Trade Commissioner, Manila
In Southeast Asia: In the Philippines, Austrade has had a presence in Manila since 1956.
Austrade’s Senior Trade Commissioner, Anthony Weymouth, is located in the Australian Embassy in Manila, along with numerous other Australian government agencies ranging from AusAID to the Department of Immigration and Citizenship, and the Australian Federal Police. The Senior Trade Commissioner works in close partnership with the Ambassador and his team from across all agencies to take a whole-of-government approach to building networks, identifying opportunities and resolving operational challenges for Australian companies doing business locally.
Amanda Hodges
Trade Commissioner, Dubai
In the Middle East: Austrade’s presence in the Middle East has evolved over time, as changing political and economic conditions have had an impact on opportunities for bilateral trade and on investment patterns.
Austrade’s offices in Abu Dhabi, Dubai, Jeddah, Rabat and Riyadh are led by Consul-General and Senior Trade Commissioner, Gerard Seeber, in Dubai. Trade Commissioner, Amanda Hodges, is a senior member of the Dubai team. In addition to her work assisting Australian exporters, she has a busy consular workload and helps support the large numbers of Australian ministers visiting and transiting through the United Arab Emirates.
David Crook
Senior Trade and Investment Commissioner, London
In the United Kingdom: Australia’s first Trade Commissioner to London was appointed in 1946 and traditional links between Australia and the UK remain strong. The UK is the second-largest source of foreign investment into Australia, the second-largest destination for Australian investment offshore, Australia’s sixth-largest two-way trade partner and the second-largest for services trade.
Senior Trade and Investment Commissioner, David Crook, and the London team, work with colleagues in the UK and across Austrade’s Europe network to further strengthen Australia’s investment and trade links there.
Austrade’s role in trade promotion
Austrade’s international network
Austrade has an international network of 82 offices in 48 markets around the world, including the 173 consular posts it runs on behalf of the Australian Government. Of Austrade’s 1,003 staff, 558 are based outside Australia.
Trade Commissioners from Australia lead the international network. At 30 June 2013, Austrade had 71 Trade Commissioners at overseas offices. Austrade also has a strong team of overseas-engaged employees who bring the local knowledge and networks that underpin the support Austrade provides to Australian companies, education institutions, and other stakeholders in market.
3. Operations in Tripoli were suspended during 2012–13.
Australia’s exporter community
More than 44,500 Australian companies exported their goods and services to international markets in 2011–12. These figures, the latest from the Australian Bureau of Statistics (ABS), released at the end of May 2013, show that there is a continuing and demonstrable shift in the destinations for Australian exporters, from broadly ‘Western’ established markets to ‘Eastern’ growth markets.
Exporters seek assistance from Austrade in many markets, but particularly for markets in East Asia, which account for two-thirds of all the business opportunities that Austrade identifies. Increasing numbers of Australian exporters are also exploring opportunities in India and the Middle East, spurred on by a series of large state government-led missions into growth and emerging markets.
Exporters of food and beverages account for about a quarter of Austrade enquiries, followed by education and training providers, which is a reflection of Austrade’s mandate to support the internationalisation of the education sector.
Austrade regularly assesses the services it offers to ensure that they remain relevant and useful for Australian exporters. In frequent client surveys, companies have indicated that they want Austrade to identify and assess international business opportunities, provide help in accessing international networks and global markets, give advice on doing business internationally, and provide critical market information and insights.
Australian exporters have also reported that the badge of government provided by Austrade can make a big difference when entering international markets.
Specific knowledge and better understanding of the Australian exporter community informs Austrade’s services and planning. In April 2013, the agency initiated discussions with the ABS to undertake further examination of its data on Australian exporters and to participate in the existing ABS Business Longitudinal Survey.
Austrade is also working with a number of other organisations such as the Export Council of Australia, the Export Finance and Insurance Corporation, and the University of Sydney, to access relevant information from their databases.
Australia's trade flows
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Emerging trends
An important part of Austrade’s role is identifying emerging trends and opportunities that might not be immediately visible to Australian companies. Trade Commissioners and Business Development Managers work to identify specific areas of potential business for Australian companies. They undertake research to pinpoint potential projects and project ‘gatekeepers’, and look for possible partners for Australian companies and buyers of Australian goods and services.
Austrade operates in some emerging markets that are not necessarily primary destinations for Australian exporters. In those locations, Austrade teams focus on finding high-value opportunities for Australian suppliers and communicating the potential of the market to relevant companies.
In other markets—such as China and India—Austrade responds to high levels of demand for support from companies that already have clear ideas about the commercial opportunities they would like to pursue. In many cases, companies will contact an Austrade office with a specific request for support—for introductions, for a visit program to meet potential partners, or to learn about upcoming opportunities to showcase their products or services. Often, business people meet a Trade Commissioner or Business Development Manager to brief Austrade on their company’s plans, and seek an Austrade perspective on the opportunities, risks and on-ground realities of the local market.
Our people
Victoria Warden | Trade Adviser, Melbourne
As a Melbourne-based Trade Adviser in Resources and Infrastructure, Victoria Warden has a global perspective about trends and opportunities within the mining, equipment, technologies and services (METS) sector. She works closely with Austrade teams around the world to source opportunities for Australian exporters.
‘In order to support and assist Australian businesses in export, our Trade Advisers need to be well networked—within Austrade, within the Australian Government more broadly and, most critically, within industry’, she says.
Victoria says that the ability to plug firms into various agencies for additional support, advice, validation and peer review has become increasingly important. ‘Ultimately, exporters have the same needs regardless of the industry they’re operating in or the market they’re targeting. They need access to information, insights and networks.’
In June 2013, Victoria accompanied a high-level Australian gas and energy delegation to Israel to promote Australian capability and expertise for developing and processing the recently discovered Leviathan field. Delegates met with a range of Israeli oil and gas explorers, government agencies and professional service providers to discuss how Australian suppliers could participate and assist in both the short and long-term. ‘While it is still some time before Leviathan comes online, there are immediate opportunities for consulting and services firms to advise the Israelis on setting the regulatory framework and policies’, Victoria explains.
The following sections provide examples of Austrade’s work in these markets in the context of emerging social and economic trends.
China
China’s changing consumption and demographic patterns will have a profound impact on global business in the coming decades.
China’s economic rise over the past 30 years has been spurred by significant foreign investment and a supply of inexpensive labour from the countryside to work in export-oriented factories. The number of workers has since plateaued and increased competition for skilled workers is placing upward pressure on wages.
As lower-value manufacturing and assembly activity becomes less viable, the workforce will require advanced education and training to perform higher-value, knowledge-intensive tasks. In 2013, for the first time, China’s tertiary sector surpassed industry and construction as a share of GDP. An expanding services sector will open greater export opportunities for Australian education, finance and business consultancy service providers.
China’s population is also ageing, placing strain on the existing healthcare infrastructure. The United Nations estimates that in 2012 the number of Chinese citizens aged 65 and over was 137 million. By 2030, this number is expected to double to 269 million.4
The Chinese healthcare market is already growing by 10 per cent annually, and is expected to be the second-largest healthcare market in the world by 2020. The Chinese Government has released a healthcare reform policy supporting an investment of more than $100 billion in programs such as new hospital construction. Chinese businesses are actively seeking foreign partners and/or expertise to assist in many areas, from facility design and project management, to training and provision of management services to completed facilities.
Australia has strong capabilities in health, aged care and other services for seniors, and Australian companies are already active in the Chinese market. Austrade is working to ensure that the Australian industry is aware of opportunities in China and is assisting the industry to develop strategies to approach this challenging market.
China’s mining and minerals processing industry is the largest in the world, but growth in this sector has come at considerable environmental cost. During the 12th five-year plan (2011–2015), the Chinese Government is emphasising a ‘greener’ approach to mining by upgrading technology and using resources in a more sustainable manner.
In December 2012, Austrade published a collaborative market intelligence report to help Australian providers of mining equipment, technologies and services to pursue opportunities in China’s mining and environment sector. The findings of the report were delivered to stakeholders by webinar, and covered regulatory drivers, government initiatives and programs supporting environmental sustainability.
The report and webinar were developed and delivered by a dedicated sectoral team in China, focused on customer outreach and informing key Chinese decision-makers of Australian capabilities. This initiative resulted in the identification of business opportunities for Australian companies in heavy metal pollution remediation, tailings storage facility management and rehabilitation, and international best practice mining services.
Austrade has 11 offices in China, with posts in Beijing, Guangzhou and Shanghai, and sub-posts in Chengdu, Hangzhou, Kunming, Nanjing, Qingdao, Shenyang, Shenzhen and Wuhan. From 1 July 2013, Austrade Chengdu will operate as a post.
4. United Nations, 2010.
India
A rising middle class, industrialisation, and the secure supply of food, water and energy define the main opportunities and challenges in the Indian market. India is the largest source of new migrants to Australia and second-largest source of international students. These strong people-to-people links can be developed to enhance trade and investment ties to the mutual benefit of both economies.
Rapid urbanisation is a key driver of the Indian economy, with 30 per cent of the population now living in urban areas, a figure expected to exceed 50 per cent by 2050. The Planning Commission of India has invested US$1 trillion in infrastructure in the country’s 12th five-year plan (2012–2017) to keep pace with the country’s modernisation.
These drivers are creating demand for Australian expertise—from design and engineering, to ports, freight, rail, roads, agribusiness, water management, energy and mining.
India has many regional differences—in demographic profile, regulatory environment and sectoral strengths. Austrade offices are strategically positioned in 11 major centres across the country, including the so-called tier two cities. Staff offer information, guidance and market insights to Australian businesses and help companies select the projects, partners and locations that will give them the greatest chance of succeeding in this complex but rewarding market.
In late 2012, Austrade organised a series of business events in three cities across India to showcase Australia as a source of world-leading innovation and technologies, and to promote investment in Australian research and development opportunities. Australia–India Innovation Forums were held in New Delhi and Mumbai, featuring a panel of expert speakers from the corporate sector and research heads from leading Australian universities. Each event was attended by 150 industry, research and academic leaders. Specialised sessions focused on key areas of interest, including medical research and life sciences, as well as innovations in design, architecture and infrastructure. An additional seminar on innovations in the mining industry was held in Kolkata.
Between July 2012 and June 2013, Austrade’s Education team in India facilitated lectures in five cities under the inaugural Future Unlimited faculty lecture series. Attended by 1,500 Indian students, these lectures were organised to raise awareness of Australia as a quality provider of education.
Austrade supported Australia’s largest-ever cultural and business program in India—OzFest, which ran between October 2012 and February 2013. The OzFest business program included a high-profile food and wine promotion in Bengaluru. The judges from the MasterChef Australia television series, Gary Mehigan and George Calombaris, shared their culinary insights and experiences with a nationwide audience in a segment that launched the festival.
Our people
Ramakrishna Dastrala | Business Development Manager, Hyderabad
Ramakrishna Dastrala is a Business Development Manager for Austrade and manages the office in Hyderabad, India. His role includes all sectors of foreign direct investment, as well as a number of areas of trade. ‘We work the whole gamut from government to industry and from small to medium-sized businesses to multinational corporations’, he notes.
He says his job provides a great learning opportunity and that he finds it continually interesting. ‘The fact that I play a small role in bilateral trade is also very encouraging.’
Ramakrishna holds a Master of Chemical Engineering degree from the Indian Institute of Technology Madras, and a combined MBA from Edith Cowan University and Illinois State University. Before joining Austrade in 2004, he worked for a finance company in the United States and was an international business manager for a large conglomerate in India, where he covered markets from China to the United Kingdom.
At Austrade, Ramakrishna is particularly proud of a program he worked on a few years ago to help facilitate frozen embryo exports of the special-breed Dorper sheep from Western Australia. ‘The embryos are implanted in ewes here in India, resulting in animals that are particularly well suited to thrive in the dry and difficult conditions we often experience in this part of the world. This was a win for the exporters in Australia and a win for the farmers here in India.’
Indonesia
One of Australia’s nearest neighbours, Indonesia is home to 240 million people, more than half of whom are under 30. Indonesia also has the world’s 16th-largest economy, which the McKinsey Global Institute estimates could become the world’s seventh-largest by 2030, overtaking Germany and the United Kingdom.
This economic growth is fuelling the rapid expansion of the middle-income consumer class. Indonesia is the third-fastest-growing consumer market in the world, after India and China. Private consumption accounts for approximately 60 per cent of GDP and is expected to increase strongly. The number of Indonesia’s middle-income consumers is expected to double by 2020, to approximately 141 million people,5 and consumer preferences are becoming increasingly aspirational. As a result, Australia is an increasingly attractive tourism destination for Indonesians.
While much of the new consumer demand will be met by imported goods and services, the Indonesian Government will also be encouraging local companies to move up the value chain.
Before this can happen on a large scale, critical investment is needed in Indonesia’s infrastructure—ports, roads and rail—and in education and training.
Indonesia’s need for widescale investment creates significant opportunities for Australian companies to participate in areas such as design, project management, legal, tourism, training and technical consultancy services. Stable political conditions, proximity and ever-stronger business links make Indonesia an increasingly attractive market to do business. However, because the availability of information on key projects can be ad hoc, forming relationships with local partners is important.
Our people
Julianne Merriman | Trade Commissioner, Jakarta
As a Trade Commissioner in Indonesia, Julianne Merriman leads investment work at Austrade’s office in Jakarta, and manages a number of trade industry sectors. ‘My role is to ensure that Australia increases its trade and investment footprint in Indonesia in key sectors and to manage a team of talented Indonesian Business Development Managers’, she says.
‘Every week, I work with Indonesian business leaders, both in Jakarta and surrounds, and increasingly in high-growth regions of Indonesia such as Kalimantan, Sulawesi and across eastern Indonesia. I also have the privilege of working with some of Australia’s largest and most successful companies that have a presence in Indonesia and strategise with them on a regular basis to heighten the positioning of their brands in this market.’
Julianne speaks Bahasa Indonesian, is fluent in Japanese, and has trained in Mandarin. She was an exchange student in Japan while still in high school and her undergraduate degree was split between Waseda University in Tokyo and the University of Sydney, while her master’s degree, specialising in Japan’s economic growth, was completed exclusively in Japanese at Waseda University.
Julianne started her career in a Japanese trading house in Tokyo, worked for Westpac in Tokyo and Sydney, and then with the Japan External Trade Organization as the key manager of its relationship with Austrade. From there it was a natural move across to Austrade, which she joined in Sydney in 2000.
The Austrade team in Jakarta has access to a network of more than 500 key customers, government agencies and corporate partners to help connect Australian companies to opportunities in market.
Over the past year, Austrade’s Indonesia Infrastructure Initiative has delivered market insights and increased the profile of the Australian infrastructure sector in Indonesia. Austrade conducted workshops in Australia and Jakarta on specific Private Public Partnership (PPP) projects such as the Soekarno-Hatta International Airport to Manggarai Station rail link and the Umbulan water supply project, in collaboration with the Indonesian Ministry of Finance. As a result of these workshops and a market visit, KPMG was engaged by PT SMI for consultancy services for the rail link project. In October 2012, PT KPMG Infrastructure Advisory, a joint venture between KPMG Australia and KPMG Indonesia, was launched in Jakarta. Its prime function is to service the PPP procurement needs of key Indonesian stakeholders in the infrastructure arena.
In 2012–13, Austrade also worked closely with PT Nusantara Infrastructure Tbk, Indonesia’s Investment Coordinating Board (BKPM), and the Indonesian Chamber of Commerce and Industry (Kadin) to deliver a series of roundtables on infrastructure and investment in the regional hubs of Balikpapan, Makassar, Surabaya, Yogyakarta, Bandung and Medan. These roundtables have resulted in the identification of multiple business opportunities across 24 provinces in southern Java and eastern Indonesia.
5. Boston Consulting Group, 2013.
Japan
Despite low growth rates in recent years, Japan remains the world’s third-largest economy. Japan is also Australia’s second-largest export market and third-largest source of foreign direct investment. To cover this important market, Austrade has four offices in Japan—in Tokyo, Osaka, Sapporo and Fukuoka.
A significant trend for Japan in recent years has been the continued expansion of Japanese corporations into third-country markets across Asia. During the 1980s, Japan moved a portion of its manufacturing operations to regional third markets in order to secure cheaper manufacturing imports to Japan. However, the focus today is different—Japanese offshore operations have shifted from being cost centres to become revenue centres producing goods for domestic markets throughout Asia.
Austrade has assisted Australian businesses to access opportunities across these production networks and supply chains in infrastructure-related services, automotive parts supply, and in training for Japanese corporate employees in third markets.
During 2012–13, Austrade identified Japanese corporate involvement in 35 Vietnam-based infrastructure projects and connected Australian exporters to project supply chains. This ongoing work has already produced some positive outcomes for Australian businesses. In October 2012, for example, the architectural consulting firm PTW and an Australian construction management group won contracts to work with Japan’s Tokyu Corporation on its $1.2 billion Binh Duong project in the outer suburbs of Ho Chi Minh City.
Our people
Kazuto Kimura | Senior Business Development Manager, Tokyo
Kazuto Kimura, a Senior Business Development Manager in Tokyo, has been with Austrade for more than 20 years. He is part of Austrade’s Japan infrastructure group, which assists Australian companies to win business in Japanese projects in Japan and around the region—from Mongolia to Myanmar and all the countries in between.
‘In most of these places, Australian and Japanese companies have had long associations with local businesses; however, they have often not worked together’, he explains.
Kazuto and his Austrade colleagues help Australian companies in many ways. ‘We introduce Australian clients to key decision-makers in Japan, source project information in Japan and pass this on, work with our in-country Business Development Managers around Asia to set up contacts between Australian clients and Japanese customers, and hold networking seminars and receptions in various countries where we invite both Japanese and Australian companies.’
Kazuto says that during his years with Austrade, he has covered a wide range of industry sectors, but in recent years his main areas of specialisation have been infrastructure and sport. ‘I enjoy working on major sporting events initiatives—Japan is hosting the 2019 Rugby World Cup and is bidding for the 2020 Tokyo Olympics—and we are targeting the business opportunities that will be generated by these events.’
Austrade has also supported Australian businesses seeking to access Japanese automotive supply chains in Southeast Asia. Japanese automotive manufacturers currently produce some models in Thailand, which are then exported around Asia. To gain an understanding of the design cycles involved, Austrade created an automotive industry map that identified key industrial plants and relevant commercial contacts, and then promoted the capability of suitable Australian automotive parts manufacturers to Japanese automotive manufacturers, both in Thailand and at corporate headquarters in Japan. In October 2012, the Australian Automotive Envoy, John Conomos AO, supported by Austrade, visited Toyota and Mitsubishi in Japan to further support the integration of Australian parts manufacturers into Thailand-based automotive supply chains.
The education sector is another area of strong activity for Austrade in Japan. Major Japanese corporations require an internationally literate workforce with a global skills set, including English-language, cross-cultural communication, and global management and leadership skills. To help fulfil this need, Austrade held a series of workshops across Japan during 2012–13, including a seminar with the Osaka Chamber of Commerce and Industry for 170 Kansai-based companies, and a Tokyo event for 20 Australian universities and 32 Japanese organisations, including human resources advisers, training groups and recruitment agencies. These workshops led to a commitment from the Tokyo Metropolitan Government to send 50 students to Australia for training, and from Tamagawa University to send 90 students a year to Australia for three years. These students will attend three Victorian universities for academic study and professional development in the hospitality sector.
Our people
Nigel Warren | Consul-General and Senior Trade Commissioner, San Francisco
Nigel Warren is Australia’s Consul-General and Senior Trade Commissioner in San Francisco, where he is responsible for Australia’s trade and investment promotion programs, as well as consular and passport services across seven US states. He also manages Austrade’s ICT Digital Economy and Clean Energy programs throughout the United States, designed to attract new investment into Australia. He has been in this role since 2009.
Nigel says he enjoys supporting Australian companies to be successful and playing a part in attracting new investment into Australia. ‘I find my role special because I represent my country and this provides me with an immense amount of personal satisfaction.’
Fluent in Spanish, he joined Austrade in the early 1990s as a graduate trainee, then left about five years later to gain experience in the private sector in the United States and Japan. He rejoined Austrade in 2004 as the Trade Commissioner for Chile, based in Santiago.
Looking back, Nigel says he is proud of his part in driving and developing Australia’s programs in mining technology and services across Latin America. ‘During the time I was there, we saw a threefold increase in Australian commercial activity in Latin America and the signing of the Free Trade Agreement between Australia and Chile.’
Latin America
Strong economic growth rates for most Latin American economies over the past decade have changed the business landscape and inspired many Australian companies to explore opportunities in these markets.
With offices in six countries across the region, Austrade has been able to bring high-level networks and in-depth market information and insights to assist Australian companies in doing business in Latin America.
Australia’s commercial engagement is mainly characterised by the supply of technology and services, particularly to the mining sector. Major investments by Australian companies such as BHP Billiton and Rio Tinto, and an increase in demand from local communities for projects to be carried out in a more sustainable, safer and environmentally friendly way, mean that this sector will continue to be important to Australian companies and a priority for Austrade.
In February 2013, Austrade and the Australian Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education jointly managed a sustainable mining delegation to Colombia under the Buy Australian at Home and Abroad initiative. Led by former Queensland premier, Peter Beattie AC, the delegation represented a wide selection of Australian mining expertise and included the chairman of industry group Austmine and the Australia–Latin America Business Council, as well as a number of Australian Government departments, education institutions and other leading industry representatives.
Industry developments and looming skills shortages in the Latin American resources sectors have generated special interest in Australia’s vocational education and training system—an interest which is already translating into concrete opportunities for Australian tertiary education providers.
The Latin American water and food sectors present strong cross-sectoral opportunities for Australian education and training providers. Austrade is helping to realise these opportunities through initiatives such as the inaugural Latin America Water Week, which was held in March 2013 in Chile, and attended by a delegation of Australian water experts.
Austrade is also promoting Australian training in Latin America through scholarship schemes such as the Brazilian Government’s Science without Borders program, the Chilean Government’s Becas program, and the Australia Awards Scholarship Program for Latin America.
In 2012–13, Austrade continued to promote Australia’s expertise in major sporting events, including bidding, planning, operations, staging services, ceremonies, and venue design and construction. Particular attention was given to Brazil, where the FIFA 2014 World Cup and the Rio de Janeiro 2016 Olympic Games will be held. During the year, Austrade’s team in Sao Paulo assisted more than 50 clients in sports and sports-related infrastructure.
In May 2013, Austrade was a sponsor of a major conference in Sydney—Latin America Down Under: Strengthening Business Relationships between Australia and Latin America—which was attended by 300 delegates representing 150 companies. Australian and Latin American government ministers and business experts discussed trade opportunities across a wide range of industries, from mining to financial services.
Bruce Gosper, Austrade CEO, centre, at the Latin America Down Under conference, Sydney, in May 2013. Mr Gosper is seen here with (from L–R) Jeff Hart, former Australian High Commissioner to Nigeria; John Woods, Australian Ambassador to Peru; Alexandra Chittenden, Austrade Executive Officer, Growth and Emerging Markets; and Dan Sullivan, Australian Trade Commissioner to Chile. The Latin America Down Under conference was attended by official delegations from Brazil, Chile, Colombia, the Dominican Republic, Mexico, Peru and Suriname.
Delivering services to individual enterprises
Trade services for internationally ready firms
Austrade aims to contribute to Australia’s economic prosperity by helping Australian businesses, education institutions and governments as they:
- develop international markets
- win foreign direct investment
- promote international education.
Austrade achieves these aims by generating market information and insights, promoting Australian capabilities, making connections through an extensive global network of contacts, and leveraging the badge of government offshore.
With representation in a diverse range of international markets, Austrade provides services to those companies that are ready to tackle international business opportunities. Where organisations do not demonstrate international readiness, Austrade refers them to its online International Readiness Indicator to better understand what they need to address before undertaking exports. Austrade provides information about exporting, and where to find further assistance, at www.austrade.gov.au/export.
Since the implementation of the findings of the Austrade Review, the core rationale for Austrade’s role is now based on where the agency can add the greatest value. Consequently, Austrade’s international network has been reshaped towards more difficult or less understood markets.
In line with the Australian Government’s strategy for the Asian century, Austrade had 60 per cent of its international staff based in Asia at 30 June 2013. Approximately 61 per cent of services delivered in 2012–13 were related to countries located in Austrade’s East Asian Growth Markets grouping (Figure 4).
In recent years, and in accordance with the Government’s Australia in the Asian Century White Paper, Austrade has sharpened its focus on Asia.
Figure 4: Austrade services delivered to businesses, by target market, 2012–13
Note: Percentages do not add up to 100 per cent due to businesses being serviced in more than one market grouping.
Figure 5: Austrade services delivered to businesses, by business activity, 2012–13
Note: Percentages do not add up to 100 per cent due to businesses being serviced in more than one category.
As in previous years, the majority of businesses that received Austrade services were in the services (48 per cent) and manufacturing (39 per cent) sectors (Figure 5). Austrade has streamlined its service delivery to improve efficiency, including through the introduction of general and tailored services and the greater use of online channels. General services are non-charged services under two hours, while tailored services are charged services of two hours or more. The separate recording of general and tailored services started on 29 October 2012. During 2012–13, a total of 11,698 services were delivered to 4,867 businesses profiled in broad business activities.
Requesting Austrade’s advice and services
Businesses new to Austrade receive first-line services through Austrade Direct. This unit specialises in qualifying Australian companies for Austrade assistance, providing readily available information, directing firms to online information, and connecting firms to the most appropriate team within Austrade. Central qualification by Austrade Direct for all new potential Australian client organisations ensures that only eligible Australian organisations receive Austrade assistance.
Trade Advisers in Australia work with companies to clarify exporting needs, assist with market selection and manage more complex requirements prior to services being delivered at Austrade’s overseas offices.
Austrade Direct services are available by calling 13 28 78 within Australia or emailing info@austrade.gov.au.
Trade and education opportunities
Austrade identifies and delivers high-quality, well-qualified trade opportunities to internationally ready Australian suppliers across a broad range of industries.
Trade opportunities are quality international sales leads for products or services. Identified by Austrade’s offshore offices, these leads may meet a specific need from a qualified buyer for goods or services, which Australian exporters should be able to contest and supply.
These opportunities are often complex and involve longer business cycles. Typically, opportunities of this type may involve a joint venture, or strategic partnership, including access to a supply chain partner, or multiphase business models such as an infrastructure project.
In 2012–13, Austrade disseminated over 800 qualified trade and education opportunities from international customers to Australian businesses and education institutions directly, as well as through external networks.
In line with Austrade’s strategy, over 74 per cent of the opportunities came from East Asian or growth and emerging markets. More than a third of the trade opportunities distributed by Austrade were from the food and beverages and agribusiness sectors. Trade opportunities from these sectors are generally high in volume and benefit from Australia’s internationally recognised reputation and established terms of trade. More complex trade opportunities are typically lower in volume and involve longer business cycles, for example, multiphase infrastructure projects or advanced manufacturing opportunities (Figure 6).
Figure 7 shows the markets responsible for the greatest number of trade opportunities, reflecting Australia’s strong trade engagement with Asia. Three markets—India, Japan and China—generated over 40 per cent of all opportunities. East Asian markets (excluding Japan) were responsible for over half of the total number of opportunities distributed by Austrade in 2012–13.
Figure 6: Trade and education opportunities by top 12 industries, 2012–13
Figure 7: Trade and education opportunities by top 12 markets, 2012–13
Accessing global mining supply chains
Austrade is working collaboratively with Chile’s Corporación Nacional del Cobre (Codelco), the largest copper producer in the world, to explore opportunities for Australian mining equipment, technology and services (METS) companies and other service providers. State-owned Codelco has an ambitious investment pipeline and is undertaking a major expansion program, which includes five structural projects worth approximately US$28 billion in capital expenditure over the next 10 years.
Austrade is helping Australian businesses access Codelco and is identifying further opportunities where Australian companies can provide solutions for underground mining, research and development, workforce planning, and education and training.
In December 2012, Austrade held a seminar where Codelco’s Director of Procurement talked to 40 selected Australian METS companies about Codelco’s plans. This event, which was also supported by the Queensland and Western Australian governments, provided an overview of Codelco’s program, insights into the different divisions of the company and how procurement is managed, and information about what Australian companies need to do to access these projects. The briefing was the first in a series of ‘Meet the Miner’ seminars aimed at assisting Australian companies to meet global mining companies interested in procuring innovative technologies and services.
The Hedweld Group of Companies, based in the Hunter Valley, New South Wales, exports to 23 countries and has supplied equipment to Codelco for many years. Hedweld develops solutions to engineering problems, including a safe method of accessing and egressing large earth-moving equipment and a safe, efficient method of component handling.
Hedweld was named the winner of the Austmine 2013 Craig Senger Export Award, celebrating excellence in the export of METS globally. The award marks the contribution of Austrade Trade Commissioner, Craig Senger, who tragically lost his life in a terrorist attack on a hotel in Jakarta in July 2009.
The Hedweld Group of Companies won the Austmine 2013 Craig Senger Export Award. L–R: Sandy Thomas, Hedweld Marketing Manager; Steve Fenton, Product Support Representative; Ian Hedley, Managing Director; and Kristy Hedley, Global Marketing Development Manager.
Market insights
Austrade delivers market insights to Australian industry and shares these insights with the agency’s offshore network and customers.
In 2012–13, this work centred on the opportunities presented by six trade themes—identified through market analysis and from the Australian Government’s Australia in the Asian Century White Paper, the Industry and Innovation Statement, and the National Food Plan.
The six high-level trade themes were identified to help guide Austrade’s activities and assistance to Australian firms, and trade opportunity summaries were developed for each of the six themes. The six target themes and their associated sub-sectors are:
- Agribusiness, food and beverages – food security, safety, supply, and agribusiness productivity
- Mining equipment, technology and services – mine site radiation, mine safety and skills development
- Global supply chains and advanced manufacturing – supply chain hubs, logistics services, and advanced manufacturing
- Innovation, technology and services – major sporting events, health and medical services, and research and development collaboration
- Infrastructure – airports, rail, freight, Public Private Partnerships (PPP) and green buildings
- Clean energy, environment and water – water supply, waste management, energy efficiency, low emissions and remediation technology.
The trade opportunity summaries for these themes have been distributed to Australian Government agencies, state and territory trade agencies, and peak sector associations such as the Australian Chamber of Commerce and Industry, and the Australian Industry Group.
Austrade has also disseminated market insights through webinars with key industry speakers who shared their practical experience in offshore markets and their understanding of Australia’s supply capabilities. Webinars have been a valuable way to share market insights with firms in Australia; for example, the ASEAN Oil and Gas market update webinar held in October 2012 had 16 participants, and the India Energy Efficiency webinar in May 2013 involved 27 organisations.
A suite of Industry Capability reports is being developed to highlight Australian capabilities across a range of targeted industries. These reports are designed to be used by offshore staff in their discussions with potential buyers and other stakeholders.
Working with allies and partners
Austrade’s work in advancing Australian trade interests is often done in partnership with other Australian Government agencies, state and territory governments, and peak industry associations.
Austrade provides information on trade opportunities on a non-exclusive basis and distributes those opportunities widely to Australian firms, including through intermediaries such as industry associations, state and territory governments, and business chambers.
Working with partners has the dual benefit of ensuring wide distribution of opportunities beyond those firms with which Austrade has already worked, and identifying new supply capabilities. Enterprise Connect, Wine Australia, the Industry Capability Network and the Australian Industry Group, for example, have become part of Austrade’s partnership network. Austrade conducted pilot programs with these organisations in 2012–13.
ASEAN Automotive Supply Chains
Austrade’s ASEAN Automotive Supply Chains initiative is directed at major automotive original equipment manufacturers (OEMs) in Thailand, Malaysia and Indonesia. This initiative targets ASEAN manufacturers’ new vehicle programs and key tier one suppliers to create procurement, partnership and joint venture opportunities for Australian companies.
Over recent years, more than 150 Australian automotive component and after-market companies have exported globally; 20 have set up operations in Thailand, four in China, four in India, three in Malaysia and two in the Philippines. In November 2012, Austrade organised an automotive supply chain mission to Indonesia, and in March 2013, arranged the visit of Indonesian and Malaysian buyers to Australian Automotive Week in Melbourne, where negotiations began with Australian suppliers. These initiatives generated around 30 trade opportunities during 2012–13.
Australian innovation: this hard-coated plastic automotive mirror has been developed using nano-engineering, making it lightweight, strong and safer than glass. It is the result of a collaborative partnership between Australia’s automotive and business excellence centre (AutoCRC), the University of South Australia and SMR Automotive Australia. This plastic mirror partnership represents only one of a number of AutoCRC projects focusing on automotive design and technology improvements characterised by close, effective working relationships between project stakeholders. AutoCRC has also built strong relationships with auto-related companies and organisations in Thailand, Malaysia and China, and provides an important gateway to international opportunities for Australian industry and researchers.
Cultural Precincts—North Asia and India
Australia has one of the most sophisticated arts and creative sectors in the world, as well as an international reputation for designing, building and successfully managing leading cultural institutions.
In 2012–13, Austrade identified potential export opportunities to Asia for Australian creative industries and related product and service providers. Austrade’s Cultural Precincts—North Asia and India initiative is designed to showcase Australian creative capabilities and how they are used around the world in major art galleries, museums, performing arts centres and other cultural venues.
During the year, more than 80 internationally ready businesses registered with Austrade to be part of the Cultural Precincts export initiative. Marketing materials highlighting Australian creative capabilities will be available during 2013–14 to help Australian businesses capitalise on the scale and pace of Asia’s transformation.
In setting up the Cultural Precincts—North Asia and India initiative, Austrade consulted extensively with industry stakeholders and allies, including the Australian Institute of Architects, the Council of Australian Art Museum Directors, the Australian Performing Arts Centres Association, the Council of Australasian Museum Directors, and state and Australian Government partners.
The striking Planning and Exhibition Centre in Wuhan, China, was designed by Melbourne-based architects and designers, Studio505. This innovative Australian company is working on projects internationally in China, Japan, Malaysia and Singapore.
Asian Century Business Engagement Plan
The Asian Century Business Engagement (ACBE) Plan is a merit-based, competitive grants program which will be run annually commencing 1 July 2013. Austrade is responsible for administering the ACBE Plan.
The ACBE Plan was announced as an initiative in the Australian Government’s Australia in the Asian Century White Paper. It has been established to assist member-based business organisations and, through them, small and medium-sized enterprises, to harness the opportunities emerging in the Asian region.
The key goals of the ACBE Plan are to leverage and/or expand the capability of member-based business groups to:
- assist Australian firms to more effectively access in-market business networks and develop new relationships with potential business contacts and partners in Asian countries
- identify and secure more opportunities for Australian firms to compete and succeed in regional value chains
- enhance and strengthen business links between Australia and Asia
- influence corporate Australia to initiate closer engagement with Asia
- reinforce and further raise the profile of Australian business capability within the region
- increase awareness and understanding of Australia in Asia, and of Asia in Australia.
The ACBE Plan funds up to 50 per cent of the total cost of an eligible project, with the remaining 50 per cent provided by the applicant. Two streams of funding are available:
- stream A—for one-year projects from $20,000–$100,000
- stream B—for projects of one to three years duration from $100,000–$300,000.
To raise awareness of the ACBE Plan, Austrade conducted two direct marketing campaigns targeting Australian member-based organisations in Australia and Asia and held information sessions in Canberra, Sydney, Melbourne and Brisbane in early March 2013. Interested parties from other parts of Australia were invited to participate in the information sessions via video or telephone conference and a dedicated ACBE email address and 1300 enquiry number were established.
From 1 March 2013, ACBE applicants were invited to submit an expression of interest and receive feedback on the eligibility of their project proposal before proceeding to full application. Austrade received 72 expressions of interest. Applications for the ACBE Plan 2013–14 grant round opened on 22 March and closed on 26 April 2013. A total of 95 ACBE Plan applications were received from a range of member-based organisations representing national, state and territory, regional and offshore bodies.
In June 2013, the Hon Kelvin Thomson MP, Parliamentary Secretary for Trade, announced the 27 successful applicants awarded grants under the program. The successful organisations represent a diverse range of sectors across Australia, including automotive, marine, international education, medical devices, neurosciences, food and beverage, agriculture, agri-biotechnology, clean energy and water, and mining. Funding was allocated to 13 national bodies, four state and territory organisations, three regional organisations and seven Australian offshore organisations. A list of grant recipients can be found at www.austrade.gov.au/acbe.
Our people
Rory McAlester | TradeStart Export Adviser, Nowra
As TradeStart’s representative in Nowra, Rory McAlester covers the southeast region of New South Wales, stretching from Wollongong to the Victorian border, and from the eastern coast to as far inland as Canberra.
Austrade manages the TradeStart program, working in conjunction with state, territory and local governments and industry bodies to help companies realise their international business goals.
In the Nowra area, the TradeStart partner is NSW Trade and Investment. ‘This means I bring the knowledge and service offerings from both Austrade and the New South Wales Government to the exporters I work with’, Rory says. ‘You could say that I’m the face of government support for exporters in this region.’
Rory assists at least 50 clients a year. ‘As well as sharing my own knowledge, expertise and insights, I draw on Austrade’s global network and all other available resources to provide clients with the information they need to make educated decisions. I provide advice on how to export, where to export and how to do it better.’
Rory has an international background. He grew up in various countries around the world and holds an honours degree in Japanese studies. Before joining TradeStart, he worked in Japan and then for a major Japanese trading house in Australia.
TradeStart
TradeStart is an Austrade-managed extension service provided to Australian firms and institutions for delivery of Austrade’s trade and education services through state, territory and local governments and industry bodies. The TradeStart network of export advisers is in 31 locations in metropolitan and regional Australia (for more information on TradeStart, see Appendix B).
Section 23AF of the Income Tax Assessment Act 1936
Austrade is responsible for determining and granting approved project status under section 23AF of the Income Tax Assessment Act 1936. This power was first delegated to Austrade in 1996 by the Minister for Trade.
Section 23AF of the Act provides an exemption from Australian income tax for individuals working overseas on an approved project for a continuous period of at least 91 days. Austrade works with the Australian Taxation Office (ATO) to implement this provision of the Act, and any income tax exemption granted under section 23AF is subject to the ATO being satisfied that all requirements have been met.
This exemption typically applies to projects in countries where individuals do not pay income tax, or where income tax is not levied on foreign workers because the project is funded by an international development agency (such as the World Bank). It can enhance the competitiveness of international tender bids by Australian organisations, as well as strengthen Australian companies’ capabilities, broaden employees’ skills and raise the international profile of Australian industry.
In 2012–13, 149 approvals were granted in response to 151 applications received from 33 applicants.6 This compares to 193 approvals, 224 applications and 39 applicants in 2011–12. This reduction can be explained by the prolonged global economic downturn and changes in business strategy by individual applicants.
In the past seven years, a total of 1,177 applications have been approved, of which more than 20 per cent of applicants indicated that they had been successful in securing contracts. Those contracts are worth more than $7.2 billion in total and have generated an average of around 2,000 jobs per year.
6. Section 23AF applicants can submit multiple applications for approval.
Women in Global Business
Austrade is a founding member and provides the secretariat of the Women in Global Business (WIGB) program, a joint initiative between the Australian Government and state and territory governments. Its objective is to increase female participation in international trade and investment, and, as a result, deliver increased economic benefits and job creation.
Achievements
In 2012–13, WIGB and the University of Melbourne conducted the first year of a five-year longitudinal study resulting in the report, Australia’s underestimated resource: women doing business globally, which was published in April 2013. The first research of its kind, this report identifies that women baby-boomer entrepreneurs are leading the way in trading in global markets; highly educated and conversant in foreign languages, most of these women have achieved significant success and an overwhelming majority plan to expand further internationally.
The WIGB mentoring program, now in its fourth intake, matches businesswomen who wish to do international business with seasoned mentors. It continues to be a major success, and more than 75 women have either graduated from, or are currently engaged in, the program.
‘Growth markets’ was the theme of the successful 2012 Speaker Series roadshow held as part of the program, which visited capital cities across Australia.
International engagement
International engagement activities under the WIGB program in 2012–13 included:
- Victorian Super Trade Mission to China, WIGB–VECCI luncheon in Shanghai, September 2012
- Empowering Women for Gender Equality in Myanmar, March 2013
- Australian-Arab Emerging Women Leaders’ Dialogue, March 2013.
Achieving high standards of client service—business satisfaction with Austrade’s services
Austrade surveys its clients annually to assess their satisfaction with its service delivery and to identify areas for service improvement. The survey is conducted independently.
The 2012–13 Service Improvement Study found that 87 per cent of clients surveyed were satisfied with Austrade’s services (Figure 8).
Austrade implemented a number of service improvement initiatives after the 2011–12 survey, also taking into consideration ongoing client feedback and other assessments of Austrade’s service delivery during 2012–13. The initiatives included:
- embedding processes to ensure that all new Australian organisations contacting Austrade are directed to the Austrade Direct team for initial help and assessment
- incorporating Austrade’s work with international organisations into the Client Service Charter to ensure a high standard of service, not only to Australian organisations, but also to international businesses buying from or investing in Australia
- reinforcing service standards and consistent business practices through corporate-wide training programs
- updating internal service policies and the customer relationship management database to reflect Austrade’s operating model
- refreshing Austrade’s website and marketing materials to ensure clear messaging to Australian businesses on the services they can expect to receive from Austrade.
Austrade’s diverse service improvement agenda was supported by a team of 40 business practice advisers operating in Australia and at overseas offices.
At any time, organisations engaging with Austrade can provide formal compliments and complaints to the Austrade Services Manager. Feedback is used to improve service delivery in Australia and overseas and helps to identify issues that are important to Australian exporters. Austrade’s Service Charter is at Appendix C.
Figure 8: Client ratings of Austrade’s service
(a) Rounded figures.
| Performance measure | Outcome |
|---|---|
Effective international marketing of Australia’s education services, in cooperation with relevant education institutions and stakeholders. |
Under the Future Unlimited branding, Austrade has promoted and positioned Australian education institutions in four ways:
|
Austrade’s international education promotion framework
International education was worth $15 billion to Australia’s economy in 2012, making it the fourth-largest of Australia’s exports (after iron ore, coal and gold) and Australia’s largest services export.7
In 2012, there were around 516,000 international student enrolments across the higher education, vocational education and training, English-language and schools sectors. The higher education sector was the largest by share of enrolments, accounting for almost 45 per cent of all international student enrolments in 2012.
Austrade supports Australia’s international education sector by helping to promote Australia as a provider of high-quality education services, helping to grow demand for Australian education and helping to build a sustainable Australian international education sector.
To achieve these objectives, in 2012–13, the Minister for Trade and Competitiveness set Austrade the tasks of:
- improving perceptions of Australia’s international education through measures such as the Future Unlimited brand for Australia’s education sector and an effective media strategy
- identifying and qualifying opportunities for Australian international education providers, including cross-industry and transnational education opportunities, especially in Asia and other growth and emerging markets
- executing an effective engagement strategy with offshore education agents
- delivering high-quality and timely market research, intelligence and services to the international education sector
- undertaking effective stakeholder engagement with key government and non-government organisations and individual institutions both onshore and offshore.
7. ABS, International Trade in Goods and Services, Australia, March 2013.
Improving perceptions of Australia’s international education sector
One of Austrade’s major objectives in 2012–13 was to increase the take-up of the Future Unlimited brand by the Australian education sector and its key allies offshore. Austrade deployed the brand at all education-related events and activities that it organised or participated in, and continued to consider applications from stakeholders in Australia and overseas to become Future Unlimited licence holders and users.
As a result, the number of Future Unlimited brand licensees increased from 171 organisations at the end June 2012 to 285 at 30 June 2013. This includes 205 Australian institutions and 80 overseas stakeholders and education agents. The licensed Australian education institutions accounted for around 74 per cent of international student enrolments in the top 200 Commonwealth Register of Institutions and Courses for Overseas Students (CRICOS) providers in Australia in 2012.
Following the launch of Future Unlimited, Austrade developed a range of branded marketing collateral to support the promotion activities of Australian international education institutions. In 2012–13, this branded collateral was downloaded 1,609 times and is being used by the licensed Australian education institutions and international stakeholders.
Since 1 July 2011, Austrade has administered the Study in Australia website, www.studyinaustralia.gov.au. The website has been endorsed by the Council of Australian Governments as the official source of information for international students. Over the past year, the website has been redeveloped and the number of unique visitors has grown by an average of 5 per cent each month. There were 2.3 million unique visitors to the website in 2012–13, an increase of 60 per cent over 2011–12.
Identifying opportunities for Australian international education providers
Austrade uses its network of staff across its offices in 48 markets to identify opportunities for Australian education and training providers to expand their services globally. In 2012–13, Austrade published 230 of these opportunities through its subscriber-based Market Information Package—up 38 per cent from 2011–12.
Austrade undertook three major initiatives in 2012–13 to help identify transnational education opportunities and provide data for the development of programs to promote Australian education across a range of markets, especially those in Southeast Asia.
These initiatives were:
- a survey of the current transnational education activities and future intentions of the Australian Council for Private Education and Training (ACPET) members. This generated responses from 144 of its members and led to the establishment of a valuable database to guide future actions with ACPET in this area
- 300 employer surveys in six ASEAN countries to identify industries with skills shortages
- an automotive skills mission to Thailand to explore opportunities in that sector.
Study in Australia website redevelopment
The Study in Australia website, www.studyinaustralia.gov.au, is the official source of information for international students and their parents. In June 2013, Austrade launched the first major upgrade to the website since its inception in 2001.
Based on consultations with international students, education providers and government agencies, the redeveloped website provides a simpler and more engaging experience for students, and for their families and peers who help potential students make important decisions.
The new systems that support the redeveloped site will provide much-improved long-term data and intelligence about the intentions of prospective international students. For the first time, Austrade will also be able to measure the number of referrals the website delivers directly to education providers.
Some of the improvements that visitors to the website will notice include:
- a new visual design and a complete rewrite of the website’s content, including the addition of more visual content
- the addition of social media and news feeds
- a database of student stories
- globally consistent content
- a student login section
- a new course/scholarship search function
- a smartphone- and tablet-friendly design.
The redeveloped Study in Australia website, www.studyinaustralia.gov.au.
ASEAN Skills Initiative
The Australia in the Asian Century White Paper identified that Australia’s vocational education and training institutions can help address the emerging skills shortages in the countries of our region.
Austrade has responded to this challenge by launching the ASEAN Skills Initiative. As part of this initiative, Austrade commissioned research to identify the specific areas of vocational skills shortages in ASEAN countries in order to help identify opportunities that Australia’s vocational education and training providers can target.
Austrade’s research showed that Thailand expects to significantly increase the number of automobiles it manufactures—from 2.2 million vehicles in 2012 to 3 million in 2015. To realise this goal, the Thai Automotive Institute has identified that Thailand will need an additional 300,000 skilled personnel in the automotive sector within the next decade.
In response to this opportunity, Austrade organised an Australian mission to Thailand in February 2013 involving Auto Skills Australia, Automotive Supplier Excellence Australia and the Kangan Institute.
One of the highlights of this mission was a high-level discussion that brought together more than 40 representatives from Thai automotive manufacturers, industry bodies, government agencies, universities and vocational colleges to discuss common skills development challenges with the Australian delegates. This panel discussion allowed the participants to explore how these challenges have been addressed in Australia.
The mission also included visits to component manufacturers and vocational institutions for one-on-one discussions, which led to several opportunities for Australian and Thai participants to collaborate on the development and delivery of skills programs in Thailand. These were highlighted at a follow-up skills development symposium with the Thai Automotive Institute in June 2013.
Participants in a high-level discussion held in Bangkok as part of the Australian automotive mission to Thailand in February 2013. L–R: Virachai Srikajon, Thailand Professional Qualification Institute; Adrian Lauder, Kangan Institute; Linsey Siede, Automotive Supplier Excellence Australia; Geoffrey Gwilym, Auto Skills Australia; Bret Anderson, Toyota Institute Asia Pacific; and Athippatai Potang, Bureau of Personnel Competency Development, Thailand Ministry of Education.
Our people
Sofia Pereira | Trade Commissioner for Education in Latin America, Santiago
Sofia Pereira is Austrade’s Trade Commissioner for Education in Latin America, based in Santiago, Chile. She leads a team of Education Managers—in Brazil, Colombia, Mexico and Peru, in addition to Chile—and is responsible for the implementation of Austrade’s strategy and framework for the promotion of Australian education in the region.
Sofia was born in Chile but came to Australia as a small child. She first went back to Chile for a visit when she was 20 and still at university, and has now spent the past 10 years there representing the Australian Government in one form or another in the area of education.
She says that what she most enjoys about her job are the same things that often make it the most challenging. ‘I deal with a significant number of internal and external stakeholders because of the regional nature of my role—heads of diplomatic missions in the region, other Australian Government departments and agencies, as well as customers throughout Latin America, such as government officials, education institutions and education agents.’
Sofia is particularly proud of an agreement she worked on with AusAID whereby Austrade serves as managing contractor for AusAID’s Australia Awards program in Latin America—the first agreement of its kind. Sofia regards it as a fine example of a whole-of-government approach that allowed Austrade to use its international network and market know-how to effectively position and promote this scholarship program as well as Australian education more broadly in the region.
Engagement with offshore education agents
As well as directly recruiting international students, education agents in overseas markets play a critical role in promoting Australia as an education destination. To capitalise on this, Austrade maintains a strong relationship with a wide network of education agents through specialised newsletters, regular seminars and events, and supervising education agent training tests.
This relationship was particularly vital throughout 2012–13 with the ongoing implementation of the recommendations of the 2011 Strategic Review of the Student Visa Program (the Knight Review), and the need to assist education agents to stay up to date with the latest rules and policies that directly affect potential and current international students.
In 2012–13, Austrade approached a number of reputable education agents and their associations in key markets to increase the global reach of the Future Unlimited brand. As a result, the number of international education agents and associations licensed to use the brand increased from 45 to 80 over the 12 months to 30 June 2013.
Market research and intelligence
Austrade provides market research and analysis to Australia’s international education sector through its Market Information Package. This information service, accessed by 1,842 individual subscribers, delivers market intelligence, market opportunities, publications, reports and event information to the international education sector. The number of subscribing organisations increased by 10 per cent in 2012–13 to almost 200 Australian education organisations.
Austrade also produces a free, fortnightly e-newsletter called Global Education News (GEN) which has 3,670 subscribers. In 2012–13, 519 articles were published in GEN.
In 2012–13, Austrade published two major research papers—More than MOOCs: Opportunities arising from disruptive technologies in education, and Demand for overseas high school education in China. Both papers were written by Austrade staff in offshore offices, Washington DC and Shanghai respectively, and discussed emerging trends in international education. The More than MOOCs (massive open online courses) paper considered the rise, and implications, of various forms of digital delivery of education courses around the world. The second paper discussed the interest among Chinese families and their children in completing high school studies overseas, one of the results of the growing middle class and high rate of urbanisation in China.
Austrade also provided in-country briefings for education providers and delivered tailored market research to individual education institutions. Austrade’s staff in markets—including the United States, Canada, India, Vietnam and Malaysia—delivered research findings directly to Australian education providers online through webinars. These webinars covered topics as diverse as student decision-making, English-language trends and market-specific analyses.
Austrade upgraded the education section of its website in April 2013 to improve the way it delivers information and services to Australian education institutions. The upgraded website features a new design and layout to improve navigation, options to refine and sort news articles, a simplified sign-up process for education newsletters and integration with social media networks.
The education section of Austrade’s website, www.austrade.gov.au/education.
More than MOOCs
In early 2012, global media attention was focused on America’s elite universities as they began to deliver high-quality courses online for free. This development quickly gained the moniker ‘massive open online courses’, or MOOCs for short.
Austrade’s office in Washington DC noted this emerging trend and began analysing the impacts that technological innovations such as MOOCs might have on the competitiveness of existing education systems and on the global demand for international education.
Austrade examined this development through a series of consultations with higher education stakeholders and leading thinkers in the United States and Australia and published this research in its January 2013 report, More than MOOCs: Opportunities arising from disruptive technologies in education.
The More than MOOCs report provides an explanation of the drivers for these disruptive technological developments in the higher education sector in the United States, identifies emerging education models and innovations, and points to opportunities and challenges for Australian education providers.
The report also highlights Australia’s long tradition of excellence in online and distance education, and focuses on how technological advances can increase international demand for Australian education by broadening the student base, raising the profile of individual institutions and improving the experience of students overall.
More than MOOCs has been downloaded 220 times from the Austrade website and has attracted a significant amount of publicity for Austrade and praise from the higher education sector. The report has also contributed to Austrade’s investment attraction mandate; three of the North American technology companies identified during the original research have since announced their intention to invest in Australia.
Austrade continues to focus on this issue and has undertaken supplementary research on the views of employers in the United States regarding recognising these alternative forms of learning and assessment. Austrade is also investigating student attitudes to, and the impacts of, new and emerging education technologies in Australia’s top 10 source markets for international students—China, India, the Republic of Korea, Malaysia, Vietnam, Thailand, Indonesia, Brazil, Nepal and Saudi Arabia. These reports will be published through the Market Information Package in the second half of 2013.
China Schools Initiative
With China’s continuing economic prosperity, increasing numbers of Chinese families are now able to afford an overseas education for their child. China is the biggest source country of international students globally and for Australia—29 per cent of all international student enrolments in Australia in 2012 came from China.
As the competition for quality overseas university places grows, Chinese parents are increasingly sending their children overseas earlier to undertake high school studies in preparation for tertiary education.
To realise the opportunities arising from this trend, Austrade is supporting the promotion of Australian schools in China through its Australian Schools: Quality Schooling at its Best initiative. This initiative will help Australian schools gain a better understanding of the ‘go earlier and younger’ trend and will help the sector develop and prioritise marketing strategies for building awareness in China and increasing the number of Chinese students studying in Australian schools. It will also improve the chances of those students choosing to continue their education journey at Australian universities and vocational education and training institutions.
One of the first activities under this initiative was a ‘school zone’ as part of the Australia pavilion at the 18th China International Education Exhibition Tour (CIEET) in Beijing and Shenyang in March 2013.
With 18,000 visitors in Beijing, the CIEET is the biggest international education event approved by the Chinese Ministry of Education. Austrade’s ‘school zone’ was supported by five state and territory education departments representing public schools in New South Wales, Victoria, Queensland, South Australia and the Australian Capital Territory; Education Adelaide; Independent Schools Queensland; and 11 private schools.
Austrade published the report, Demand for overseas high school education in China, in February 2013. The report provides insights into the current and future Chinese demand for overseas high school education. Its key finding—that the choice of country for high school education is effectively the choice of country for tertiary studies—means that inspiring Chinese families to select Australia as a high school study destination is more critical than ever.
Austrade’s report also identifies the decision-making processes of Chinese parents, assesses the performance of Australia and other competitors in this market segment, and makes recommendations for developing marketing strategies for promoting Australian schools drawn from surveys of education agents. In 2013–14, Austrade will work closely with Australian school peak bodies and other relevant organisations to implement the findings of this research.
Engagement with education organisations
In 2012–13, Austrade continued to work closely with the peak bodies that represent the education sector in Australia, particularly on the redevelopment of the www.studyinaustralia.gov.au website and the licensing of the Future Unlimited education brand.
Austrade engaged with these bodies through a variety of forums, as well as through individual projects and events. Some of the major activities and events that Austrade delivered in collaboration with the education sector included:
- completing the offshore capability survey of private vocational education and training providers in partnership with the Australian Council for Private Education and Training
- engaging with Australia’s university peak bodies
- promoting English Language Intensive Courses for Overseas Students programs across Europe, in partnership with English Australia and its members
- engaging with Australian Government Schools International on the recommendations of the China schools initiative
- working with TAFE Directors Australia to gain greater insights into employer skills needs and training requirements in Indonesia
- contributing to the activities of the International Education Association of Australia through its special interest group on transnational education.
In 2012–13, Austrade contributed to the education-related themes contained in the Australia in the Asian Century White Paper, including National Objective 13 which addresses transnational vocational education and training (see page 63).
Austrade continues to work with a number of Australian Government agencies to develop a long-term strategy for Australia’s international education sector, as recommended by the report of the International Education Advisory Council, led by Michael Chaney AO, and is a member of a number of international education forums, including the Joint Committee on International Education and the Education Visa Consultative Committee.
| Performance measure | Outcome |
|---|---|
Achievement of agreed objectives in regards to the promotion and attraction of inwards investment in Commonwealth Government priority areas and in target markets, working in conjunction with Commonwealth, state and territory government agencies. |
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Foreign direct investment environment
Australia continues to be a top global destination for foreign direct investment (FDI), with total inward FDI stock growing 9 per cent to reach a record $550 billion in 2012. Between 2007 and 2012, Australia’s inward FDI stock grew by a compound annual growth rate of 9 per cent. As a percentage of GDP, FDI in Australia rose to almost 37 per cent in 2012 from 35 per cent in 2007 on the back of stable economic growth.
The United States and United Kingdom remain dominant sources for FDI stock in Australia, accounting for 24 per cent and 14 per cent respectively (Figure 9). Other major contributors include Japan (11.1 per cent), the Netherlands (5.9 per cent) and Singapore (4.3 per cent).8 Major Asian nations, such as China, have shown strong growth in FDI to Australia of 46 per cent per annum in the last five years and are emerging as a significant source of inward investment.
8. ABS International Investment Position, Australia: Supplementary Statistics, 2012, Cat. No 5352.0 (released May 2013); Austrade Benchmark report update, June 2013, p. 35.
Austrade’s role
Austrade is the lead Australian Government agency for the promotion, attraction and facilitation of foreign direct investment. Working in cooperation with state and territory governments, Austrade provides coordinated government assistance to attract and facilitate productive FDI into Australia.
To deliver the greatest value to the Australian economy, Austrade focuses on attracting FDI that is of strategic importance, builds Australian capabilities and enhances productivity, as well as promoting Australia as a competitive investment destination.
The Australian Government has prioritised investment in the following areas:
- tourism infrastructure
- major economic and social infrastructure
- clean energy
- innovation, including advanced manufacturing.
Figure 9: Stock of foreign direct investment in Australia
Sources: ABS – International Investment Position, Australia: Supplementary Statistics, 2012, Cat. No. 53520, and Austrade.
Australia’s state and territory governments have also prioritised investment work with Austrade in the following areas:
- digital economy, including ICT
- agricultural science, and food technology and processing
- resources supply chain.
Promotion and attraction of FDI
Austrade prioritises investment activities to achieve economic benefits for Australia, including the introduction of new skills or technologies; increasing competition; filling gaps in global supply chains in high value-added activities; and supporting economic restructuring. While these benefits are important, it is the alignment of investment with government priorities that is the primary driver for Austrade’s proactive investment promotion and attraction work. In recognition of Australia’s long and consistent history in welcoming foreign investment, Austrade also promotes Australia’s open and transparent foreign investment policy framework, notably in cooperation with the Foreign Investment Review Board (FIRB). For example, during the year, Austrade organised a series of investor roundtables in Jinan, Changsha and Guangzhou for the Chair and staff of FIRB during a visit to China in May 2013.
During 2012–13, Austrade confirmed 69 inward investment outcomes, of which more than 75 per cent fell within the investment priorities for government. The largest number of outcomes were in the digital economy and major infrastructure sectors (see Figure 10), followed by clean energy and innovation. Of the projects that were outside government investment priorities, the majority were in the retail and financial services sectors.
Figure 10: Number of inward investment outcomes by sector, 2012–13
Note: Refers only to Austrade assisted inward investment outcomes. Total number of outcomes is 69.
Established markets were the source of more than 70 per cent of Austrade-assisted investment outcomes, with the United States accounting for the largest number at 30 per cent, followed by Canada with 12 per cent and the United Kingdom and Japan equally accounting for 9 per cent. Of the growth and emerging markets, India performed strongly contributing 10 per cent of outcomes (see Figure 11).
Austrade worked closely with state and territory government partners to provide support for site visits and relevant regulatory and commercial information. During the course of 2012–13, Austrade provided assistance with 91 investment projects and supported 60 site visits. Austrade’s network also delivered other insights and investment milestones (which may contribute in due course to outcomes) to partner agencies and state and territory governments.
Figure 11: Number of inward investment outcomes, by source country, 2012–13
Note: Total number of outcomes is 69. Numbers are rounded and therefore may not sum to 100 per cent.
Austrade’s investment network
While Asian investment is growing, established markets remain the largest sources of foreign investment for Australia. In these markets, Austrade’s resources are focused predominantly on the promotion and attraction of FDI and international education services.
United States
The United States, a major driver of foreign investment globally, is the source of 24 per cent of Australia’s stock of FDI, making it the largest investor in Australia. Patterns in US FDI generally reflect fundamental changes occurring in the US domestic economy. As a result, US FDI abroad is focused less on the extractive, processing, and basic manufacturing industries in developing countries and more on high technology, finance, and services industries located in highly-developed countries with advanced infrastructure and communications systems. These drivers for investment are generally aligned with Austrade’s investment priorities. However, resurgence in growth in the US economy is creating domestic competition for companies that might otherwise consider investment opportunities into Australia in major infrastructure, tourism infrastructure and the resources sector supply chain.
In the case of tourism infrastructure, Austrade’s US operation has focused on addressing the lack of awareness of the investment opportunity in Australia. When presented with facts on Australian tourism, US investors considered high visitor numbers from China, high hotel occupancy rates and relatively high revenue per available room to be advantages. Investors from the US would generally only enter the market if they had local partners to provide finance and undertake development. Similar approaches apply in other priority sectors, where tailored information is provided to a targeted category of investor to help them understand the business opportunity in Australia.
A key focus of investment promotion work in the US is on small investor seminars and roundtables organised to coincide with major events or ministerial visits. For example, the team organised a number of activities across the country around G’day USA in January 2013. These included seminars focused on clean energy policy, a major innovation program, and a luncheon featuring the Hon Wayne Swan MP, the then Deputy Prime Minister and Treasurer, focused on the Australian economic growth story.
United Kingdom
The United Kingdom is the second-largest source of FDI for Australia with a 14 per cent share in 2012. Austrade’s primary areas of activity in the UK are major infrastructure and tourism infrastructure. This reflects the role of London as a world financial centre and major source of infrastructure financing, as well as the presence of major infrastructure constructors and project managers in London and the UK more broadly. UK investment in Australia is influenced by factors such as companies seeking more exposure to growth markets and the search for returns for investment funds. Australia’s engagement with Asia also presents opportunities for UK firms, including in relation to infrastructure construction and project management. In this context, approximately one-third of all regional headquarters in Australia are European, and of these, almost half are British.
In response to market insights that international infrastructure investors found Australia’s expression of interest stage of tendering complex, Austrade’s UK and European teams held a series of masterclass workshops with Infrastructure Australia. The workshops attracted between 20 and 40 attendees and were very well received by potential investors. These workshops are also being rolled out in Japan and the Republic of Korea.
Western Europe
Eight economies in Western Europe were placed in the top 20 sources of FDI in Australia in 2012. In Western Europe, Austrade is working across all the agreed investment priorities.
Spain, Italy and France are home to some of the world’s largest infrastructure companies with global experience in complex civil works, and rail, water and social infrastructure. The downturn in construction in Europe and maturity in some existing markets, such as Latin America, has led to strong interest in Australia from Western European companies. Feedback from investors in Europe has helped focus policy attention on issues relating to investment. For example, Austrade organised detailed briefing sessions by experts from Australian government agencies to explain Australia’s tendering processes for complex infrastructure projects to companies in Europe and other markets.
Austrade has actively promoted Australian innovation in Western Europe. On Australia Day 2013, the year of celebrations marking 60 years of diplomatic relations between Germany and Australia concluded. Aligned with that, Austrade organised the Australia–Germany Innovation Forum in Frankfurt to showcase Australian-German collaboration in innovation in advanced materials and future cities. One of Germany’s major newspapers, Der Tagesspiegel, included the forum in a two-page supplement on Australia. Following the announcement of the Australian Government’s Industry and Innovation Statement in February 2013, Austrade assisted specialist media, such as Focus Online and wallstreet:online, to report on the statement.
Australia–Germany Innovation Forum, Frankfurt, February 2013.
Japan
Japan is the third-largest source of FDI in Australia and is one of Austrade’s key investment markets, particularly in clean energy, innovation, major infrastructure, agribusiness and the digital economy. Austrade’s approach to investment attraction places emphasis on the drivers for Japanese outward investment, including food and energy security, market expansion, technology innovation and the development of global human capital, which are areas of competitive advantage for Australia.
Austrade has been tapping into second and third tiers of large Japanese companies based in regional areas where there is strong impetus for investors to seek international opportunities. In clean energy, Austrade is providing regular updates on policy and program changes. These briefings are available for industry leaders from electricity utilities, engineering and construction, trading, manufacturing and project financing firms. Not only do potential investors get firsthand insights on Australia, but Australian stakeholders also hear the investors’ perceptions about Australia’s policy and program settings.
Our people
Rika Sasaki | Innovation Investment Manager, Sydney
A native Japanese speaker, born and raised in Tokyo, Rika Sasaki joined Austrade 21 years ago. As a young girl, she was always interested in learning about foreign cultures. Her family owned a condominium on Queensland’s Gold Coast, so she often visited Australia, and after completing her undergraduate degree at Waseda University in Tokyo, it was an easy step to undertake an MBA at the Gold Coast’s Bond University.
‘After studying in Australia, I wanted to work in an organisation with a link to Australia’, she says, ‘and I was fortunate to be able to join Austrade in Tokyo in 1992 as a Marketing Manager.’ Working for Austrade, she alternated between Sydney and Tokyo for many years before permanently moving to Sydney in 2006.
‘I am now with the Investment Innovation team. Our priority is to attract international firms to invest in research and development in Australia. My role includes supporting the offshore network in investment projects, providing market and industry information, and supporting investors’ site visits to Australia.’
Rika points out that every investment enquiry has different characteristics and requirements, which is challenging for offshore investment managers. ‘I really enjoy working with them to promote Australia as a potential innovation investment destination’, she says.
To understand the potential for investment in economic infrastructure, Austrade has undertaken detailed research on the Japanese market, identifying trends in financing infrastructure in Japan and abroad. Due to the nature of their domestic market, Japanese constructors and financiers are showing interest in Public Private Partnerships outside Japan and potentially in Australia.
Building capacity
As the lead agency for Australia’s whole-of-government approach to investment promotion, attraction and facilitation, Austrade delivers the national flagship capability development program, Winning Investment for Australia. This program is delivered by Austrade under the auspices of the National Investment Advisory Board. In 2012–13, 14 Austrade staff, 19 state and territory staff and seven staff from other Australian Government agencies graduated from the Winning Investment for Australia program.
In February 2013, Austrade also delivered training in consultative selling and investment attraction techniques to Australia’s investment teams in China and India (with a planned rollout across other markets in the second half of 2013).
A comprehensive tourism infrastructure investment training program was delivered to Austrade offshore staff in conjunction with partner agencies, Tourism Australia and the Department of Resources, Energy and Tourism, in Sydney in April 2013.
Working with other organisations
Australian Government agencies and state and territory governments work collaboratively with Austrade under agreed protocols and multi-year strategies, using Austrade’s international network which can:
- identify and generate investment leads that align with the priorities of Australian, state and territory government stakeholders
- access networks of key decision-makers, multipliers, businesses and influencers in both offshore markets and in Australia to access market insights
- use the badge of government to establish contacts, build networks, influence foreign firms and give credibility to investment attraction activities.
The Victorian Government provided a senior executive on secondment to Austrade for a year to develop criteria and guidelines for Austrade and states and territories to attract investment into major opportunities in Australia in areas such as tourism and economic infrastructure.
A senior representative of Indonesia’s investment promotion agency, the Investment Coordinating Board, was also placed in Austrade’s office in Melbourne to learn about Australia’s approach to the promotion and attraction of foreign investment. This placement was supported by AusAID and reflects a commitment by Australia and Indonesia to help increase two-way investment.
| Performance measure | Outcome |
|---|---|
Strong international awareness of Australia as a destination for productive foreign direct investment and as a source of competitive, high-quality goods and services, and a world-class international education system. |
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Increased promotion of contemporary Australia’s commercial, intellectual and creative credentials through Australia Unlimited and of Australia’s high-quality education services to international students through Future Unlimited. |
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Austrade online
In 2012–13, there were approximately 1.4 million visits to Austrade’s website and over 4 million page views.
During the year, the Austrade website’s Export Markets section for Australian businesses was significantly updated with a new design and additional content. Australian companies can access information on more than 85 countries covering news, events and doing business in local markets. Reports on key export opportunities for particular markets have also been added.
A market profile on the Export Markets section of Austrade’s website, www.austrade.gov.au.
The launch of the Australian Foreign Investment Guide also enhanced Austrade’s website in 2012–13. Designed to help international investors and businesses invest and operate in Australia, this online guide covers the regulations, considerations and assistance relevant to investing in, establishing and running a business in Australia. It also includes direct links to relevant regulators and government agencies.
During the year, as part of Austrade’s program for the London 2012 Olympic Games, 11 video pieces were developed about Australian organisations that had either provided products or services to the London Olympic Games or to other major sporting events in the past, such as the Sydney 2000 and Beijing 2008 Olympics.
Produced to showcase Australia’s world-class capabilities in the major sporting events sector, and hosted in a dedicated play-list within the Austrade-branded YouTube channel, these videos were part of integrated information pieces describing each organisation. The total number of views for the videos was high, one in particular—a profile on the organisation FCT Flames, provider of the technology behind the Olympic cauldron used at the London Olympics—received more than 72,000 views.
Our people
Shannon Kolbe | Web Project Manager, Sydney
As Web Project Manager in Online Service and Information Practice, Shannon Kolbe runs a small team based in Sydney that is responsible for the day-to-day content, production and maintenance of Austrade’s website, www.austrade.gov.au.
‘My work is continually evolving as we monitor and respond to online trends and opportunities’, Shannon says. She is proud of the way the website presents and spreads both Austrade’s and Australia’s message around the world. ‘Businesses have told us in user feedback sessions that the information they get from our website helps in their decision-making, and peers in other web teams have told us that they watch what we’re doing and how we do it.’
Shannon has worked at Austrade virtually since the time she left university. ‘I joined when the internet was in its infancy and there were no degrees in the online space. Austrade has allowed me to carve out a career in online service that I wouldn’t have thought possible.’
‘My colleagues in my team are a fantastic group of specialist practitioners who are skilled at what they do. I am constantly learning from them and enjoy the camaraderie. We like working together towards a common goal.’
Brand Australia
Austrade received $20 million over four years, from 2008–09 to 2012–13, for the Building Brand Australia program to promote contemporary Australia’s intellectual, commercial and creative credentials through the Australia Unlimited visual identity and umbrella theme. The program reflects the economic importance of projecting a well-balanced and accurate image of Australia internationally in order to attract international buyers, investors, visitors and students. Funding for the Building Brand Australia program came to a close in 2012–13.
The main areas of focus for Australia Unlimited during the year were to gain an understanding of how other parts of the world see Australia; to distribute stories that validate Australia’s intellectual, commercial and creative credentials; and to work with industry and government to promote and encourage uptake of the Australia Unlimited brand beyond the end of dedicated funding.
The Australia Unlimited website, www.australiaunlimited.com.
Research and insights
In 2012–13, Austrade undertook research to provide detailed insights into global perceptions of Australia. The research indicates that, while Australia’s image is still strongly associated with landscape and lifestyle, perceptions of its business environment, contribution to the global community, governance and approach to technology have shown marked improvement over recent years.
Austrade also launched Insights Unlimited, www.insightsunlimited.com.au, a web portal that brings together international research highlighting Australia’s reputation from 14 credible sources. This information was made available across Commonwealth, state and territory governments.
Stories of unlimited potential
Over 160 new stories profiling Australian achievements brought the program’s total to 366, all available through www.australiaunlimited.com.
A special digital edition celebrating the achievements of 50 Australian expatriates was launched on Australia Day in 2013, generating positive international media coverage in markets such as China.
A special India edition of the Australia Unlimited iPad app was launched in New Delhi during the OzFest cultural festival by the Hon Dr Craig Emerson MP, Minister for Trade and Competitiveness, and champion cricketer, Adam Gilchrist AM.
Champion cricketer, Adam Gilchrist AM (left), with the Hon Dr Craig Emerson MP, Minister for Trade and Competitiveness, at the launch of the special India edition Australia Unlimited iPad app in New Delhi, in January 2013.
Assisting others to use Australia Unlimited
In 2012–13, 116 organisations used Australia Unlimited branding, licensing and sponsorship arrangements.
Austrade’s relationships with organisations such as the Defence Materiel Organisation, the Export Council of Australia, CSIRO, the European Australian Business Council and regional chambers of commerce, as well as sponsorships with the Australian Institute of Architects and the Public Relations Institute of Australia, helped contribute to increased usage of Australia Unlimited in 2012–13.
A new visual identity incorporating the Australia Unlimited brand was developed for the Council on Australia Latin America Relations, and research to support a ‘Team Australia’ approach across Australian, and state and territory governments was also completed.
Australia Unlimited was used to badge Australia’s presence at international trade events managed by Austrade and as the umbrella brand at high-profile international events, often in partnership with the Department of Foreign Affairs and Trade. The Australia Unlimited event program in London during the 2012 Olympic Games showcased Australia’s major sporting events capabilities. Major international events and public relations activities were also delivered in Germany, Hong Kong, India, Italy, Japan, Thailand and Vietnam.
Industry awareness of Australia Unlimited has continued to grow, supported by a campaign that generated coverage in industry media and a higher-than-average click-through rate on the website, with more than 3,000 clicks from 2.4 million impressions.
The Australia Unlimited brand will continue to be available for use by industry and government stakeholders.
London 2012 Olympic Games
The London 2012 Olympic Games presented an opportunity to showcase Australia’s global expertise and capabilities in the planning and delivery of major sporting events.
During the Olympics, Austrade organised a networking event hosted by Senator the Hon Kate Lundy, Australian Minister for Sport, which was attended by decision-makers responsible for future international sporting events.
Among the 250 guests were representatives of organising committees for the FIFA World Cup (Brazil 2014, Russia 2018 and Qatar 2022); the Olympic Games (Rio de Janeiro 2016 and the 2020 bid cities—Istanbul, Madrid and Tokyo); the Winter Olympic Games (Sochi 2014 and PyeongChang 2018); and the Rugby World Cup (England 2015 and Japan 2019).
Australian Export Awards
The 50th year of the Australian Export Awards served a dual purpose—to acknowledge and recognise Australia’s top exporters for 2012 and to celebrate half a century of Australian exporting success.
Seventy-eight national finalists progressed via the eight state and territory export award programs to compete in the 50th Australian Export Awards held at Parliament House, Canberra, in November 2012. The group of finalists, from a diverse range of industries, made a combined $8.5 billion in export sales and employed more than 27,500 people.
The 50th-year event also provided an opportunity to examine how the nature of trade and Australia’s engagement with the world has changed since the awards were first held. Many of the 2012 national finalists came from fields that did not exist in 1963—areas such as cloud computing, international education and state-of-the-art digital animation. An audiovisual timeline demonstrating this progress and showcasing winners over the 50 years was shown at the national ceremony and hosted on the Australian Export Awards website.
Prior to the national ceremony, national finalists attended a masterclass on doing business in Asia. This was followed by a networking lunch, attended by the Hon Justine Elliot MP, the then Parliamentary Secretary for Trade, for finalists, stakeholders and sponsors.
The Hon Dr Craig Emerson MP, Minister for Trade and Competitiveness, hosted the 50th Australian Export Awards national ceremony, attended by more than 480 guests, where the 12 national winners were announced. The Prime Minister’s Australian Exporter of the Year award was presented to PWR Performance Products, a manufacturer of premium products for high-performance motor vehicles in the elite racing market, as well as the wider automotive market.
Laservision, a world leader in multimedia attractions, special events and architectural lighting was inducted into the Australian Export Awards Hall of Fame, one of only 10 companies to be honoured with this acknowledgement. The key criterion for induction is that a company has won three times in the same national category. Laservision won the Arts and Entertainment Award in 2008, 2010 and 2011.
The Australian Export Awards are presented by Austrade and the Australian Chamber of Commerce and Industry and are one of the longest-running business awards programs in Australia.
The 50th-year of the Australian Export Awards, Parliament House, Canberra, November 2012.
The winners at the 50th Australian Export Awards were:
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The Hon Dr Craig Emerson MP, Minister for Trade and Competitiveness, announces the winner of the Prime Minister’s Exporter of the Year Award at the 50th Australian Export Awards, Canberra, November 2012.
PWR Performance Products
- Winner, Prime Minister’s Australian Exporter of the Year Award 2012
- Winner, Small to Medium Manufacturer Award 2012
Recognised as a world leader for high-performance automotive cooling, PWR Performance Products designs and manufactures lightweight aluminium, superior-performance automotive radiators, oil coolers and inter-coolers, and exports these products all around the world.
The Australian Export Awards judges commended PWR for an innovative export strategy that relies on technological excellence and the ability to remain in front of global competitors.
| Performance measure | Outcome |
|---|---|
Effective contribution to whole-of-government policy development utilising Austrade’s global, commercial perspective on export, investment and international education. |
In 2012–13, Austrade contributed to whole-of-government policy development, program management and service delivery through various processes and forums, including for example:
Throughout the year, Austrade also continued to engage with state and territory governments to develop shared trade and investment initiatives through the Senior Officials Trade and Investment Group, the National Investment Advisory Board and the National Trade Development Working Group. |
Throughout 2012–13, Austrade continued to contribute a trade, investment and education perspective to whole-of-government policy processes of importance to exporters, education institutions and investors. Austrade also continued to build on partnerships with stakeholders, including Australian Government agencies, state and territory governments, industry associations, chambers of commerce and business councils.
Austrade worked with the Department of Foreign Affairs and Trade on a number of significant policy processes and forums, including the National Food Plan Green Paper and White Paper and the Australia in the Asian Century White Paper, and continued to work closely with the Export Finance and Insurance Corporation and the Australian Agency for International Development (AusAID).
In 2012–13, Austrade provided support to the Department of Resources, Energy and Tourism to deliver sustainable mining workshops in Lima and Mexico City. Funded by AusAID, the workshops included mining officials from countries around the region and served to showcase Australia’s leading practices in sustainable mining.
AusAID funding also made it possible for Austrade to work with Indonesia’s Investment Coordinating Board (BKPM) to arrange for the secondment of a senior BKPM official, Heldy Putera, to Austrade’s investment operations in Melbourne. This secondment, a first for Austrade, ran from April to June 2013. It was set up to enhance the capacity of BKPM to develop quality business-to-business project proposals, providing Mr Putera with an opportunity to examine how Austrade works with Australian states and territories to develop investment opportunities for promotion to overseas investors.
Austrade is working with the Department of Agriculture, Fisheries and Forestry to deliver a Brand Australia Global Food Strategy which will meet the goal of the National Food Plan White Paper for Australia to have a globally recognised food brand that is synonymous with high-quality, innovative, safe and sustainable food, services and technology by 2025.
Austrade also concluded a partnership agreement with the Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education (DIICCSRTE) in December 2012. This agreement was developed to help shape the environment for Australian industry and individual Australian businesses in order to drive increased productivity and competitiveness and to strengthen international trade and productive foreign direct investment.
The agreement notes the complementary roles, responsibilities, resources and capabilities of DIICCSRTE and Austrade and formalises the commitment to work together to deliver long-term benefits to Australian business, investors, and education institutions. DIICCSRTE’s knowledge and responsibilities around Australian capabilities and capacities, as well as Australian Government policy, are complemented by the information, insight and contacts provided by Austrade’s international network.
Austrade also worked with DIICCSRTE throughout the year under the Buy Australian at Home and Abroad initiative and supplier advocate programs. These programs provided assistance to a number of study missions, including a rail study mission to Europe and a steel suppliers’ mission to Thailand and China—both held in September 2012—as well as the Resources Sector Supplier Envoy’s second trade mission to Latin America in February 2013, which covered sustainable mining.
The Australia in the Asian Century White Paper, released in October 2012, outlined the Australian Government’s four inward investment priorities—tourism infrastructure, major infrastructure, innovation (including advanced manufacturing) and clean energy.
Reflecting these priorities, in June 2013 an inter-agency cooperation agreement on clean energy and renewable energy investment promotion was finalised with the Department of Resources, Energy and Tourism and the Australian Renewable Energy Agency. A tripartite agreement on tourism infrastructure investment had been concluded in 2011–12 between Austrade, the Department of Resources, Energy and Tourism, and Tourism Australia. In August 2012, Austrade and the Department of Infrastructure and Transport concluded a partnership agreement on the Investment Promotion and Attraction Investment Strategy for Major Infrastructure. A supplementary partnership agreement was also concluded between Austrade and DIICCSRTE on the Australian Innovation Foreign Investment Promotion and Attraction Strategy in May 2013.
Austrade continues to work closely with industry associations, chambers of commerce, business councils and other allied partners. Austrade’s State Directors help to manage Austrade’s relationships with these organisations, as well as with state and territory governments.
In June 2013, David Lawson, Austrade’s State Director NSW and ACT, presented on ‘Doing Business in Asia: Opportunities and Risk Management’ at a stakeholder and allied partnership seminar held at the Sydney office of French credit insurer, Coface. Austrade’s State Directors regularly participate in and present at similar events around Australia to share Austrade’s market insights and highlight opportunities in specific offshore markets.
David Lawson, Austrade’s State Director NSW and ACT, discusses ‘Doing Business in Asia: Opportunities and Risk Management’ at a stakeholder and allied partnership seminar in Sydney in June 2013.
In March 2013, Austrade partnered with state governments and state chambers of commerce to present a series of briefings by Austrade’s Senior Trade Commissioners in the Asian region. They briefed businesses on trade opportunities in the Asian century, and gave their insights on how businesses could realise these opportunities. There were 17 briefings held across Australia over four days, at which Senior Trade Commissioners addressed around 1,500 people.
Also in March 2013, as part of this series, the Hon Kelvin Thomson MP, Parliamentary Secretary for Trade, hosted a briefing for Members of Parliament, Senators and staff at Parliament House in Canberra where Senior Trade Commissioners and Trade Commissioners from China, India, Japan, Indonesia and the Republic of Korea reported on how Austrade has helped Australian businesses in Asia, with a focus on these five markets.
Australia in the Asian Century White Paper
In October 2012, the then Prime Minister, the Hon Julia Gillard MP, released the Australia in the Asian Century White Paper.
The White Paper’s national objectives and policy pathways provide a roadmap for Australia to navigate the Asian century. Austrade is responsible for implementing initiatives in support of nine of the 25 national objectives. These include promoting and connecting business to Asian markets, promoting investment in Australia, and providing services to assist food and agricultural exports, as well as contributing to a number of other export sectors.
Two major initiatives led by Austrade include administration of the four-year Asian Century Business Engagement Plan (see page 34) and delivery of the Operating in Asian Markets Forum.
Austrade is working closely with other agencies on the implementation of the White Paper and has appointed a senior officer to the implementation task force. Austrade has contributed to three policy studies on regional value chains, and the aged and health care and food processing sectors. The studies helped to identify how best to assist Australian businesses take advantage of opportunities in expanding Asian markets and to inform future policy development.
As part of the Australian Government’s commitment to help businesses break into and expand in Asia’s emerging and growth markets, Austrade opened a new office in Yangon, Myanmar, in June 2013. A Trade Commissioner has been appointed, with the position supported by a number of overseas-engaged business development managers. The Austrade office in Yangon will help Australian companies establish a presence in Myanmar’s promising and challenging market.
Industry and Innovation Statement
Following the Government’s release, in August 2012, of the report by non-government members of the Prime Minister’s Taskforce on Manufacturing, Smarter manufacturing for a smarter Australia, Austrade participated in the DIICCSRTE-led interdepartmental committee to develop the Industry and Innovation Statement, A plan for Australian jobs, which was announced in February 2013.
Austrade is working closely with DIICCSRTE on the implementation of the statement, including through the delivery of growth opportunity and leadership development services for export-ready companies in each of the industry innovation precincts. These services will be offered by all precincts and will provide high-potential small and medium-sized enterprises with access to advanced business support, including the provision of skills and technical expertise, business design solutions, expanded management development and enhanced marketing services.
Collaboration with state and territory governments
During 2012–13, Austrade worked closely with state and territory governments on initiatives, both in Australia and overseas, to further enhance coordination and collaboration and maximise the value of government resources in order to build on Australia’s trade, investment and international education interests and outcomes.
Austrade provided assistance to a number of state and territory government missions overseas, including a visit to Indonesia in April 2013 by a delegation from the Australian Capital Territory, led by the Hon Andrew Barr MLA, Deputy Chief Minister. The 32-member delegation, the largest-ever ACT trade delegation, was made up of companies from the ICT, education, health, services and government sectors. Many of the delegates reported positive outcomes from this initial visit, with a number planning return visits later in the year.
The Hon Andrew Barr MLA, Deputy Chief Minister of the ACT (centre), with members of the ACT delegation to Indonesia, in April 2013. (Image used with permission of the Jakarta City Government.)
Austrade also provided assistance to the Victorian super trade mission program, which included missions to China from 17–21 September 2012, led by the Hon Ted Baillieu MLA, the then Premier of Victoria, with participation from 450 companies; to the Middle East from 25 February to 3 March 2013, led by the Hon Louise Asher MLA, Victorian Minister for Employment and Trade, with participation from 180 companies; and to Southeast Asia from 17–21 June 2013, led by the Hon Dr Denis Napthine MLA, Premier of Victoria, with participation from more than 300 companies.
Senior Officials Trade and Investment Group
The Senior Officials Trade and Investment Group (SOTIG), established in April 2012, met in August 2012 in Perth and in April 2013 in Adelaide. The group also conducted two virtual meetings via videoconference during the year.
SOTIG aims to grow Australia’s trade and investment by improving coordination and collaboration between the Australian Government and state and territory governments—a ‘Team Australia’ approach. It provides strategic direction to the operationally focused National Investment Advisory Board and the National Trade Development Working Group.
SOTIG has achieved significant milestones in its first year of operation, including in capability building and skills set sharing; agreement on investment priorities (as outlined on page 48); agreement on principles for employing state and territory specialist business development managers for trade, education and investment purposes at Austrade offices offshore; commitment to pilot a ‘Team Australia’ branding approach to international promotional activities; and steps to better align trade activities through more transparent planning processes.
Attached agency agreements
Austrade administered a number of service-level agreements for property and administrative support in overseas locations with attached Australian Government agencies, including the Department of Foreign Affairs and Trade; AusAID; AusFilm; the Australian Federal Police; Wine Australia; Australian Education International; the Department of Agriculture, Fisheries and Forestry; and the Department of Immigration and Citizenship. In most cases, these agreements are in place in Austrade-managed Consulates-General.
Austrade also employed state and territory special Business Development Managers on behalf of the South Australian Department of Manufacturing, Innovation, Trade, Resources and Energy in Hong Kong and Trade and Investment Queensland in Ho Chi Minh City, to deliver a mutually agreed business plan to support each state’s trade, investment and education promotion activities in its respective markets.
Austrade delivers services to, and works with, these agencies and departments overseas to ensure that government efforts, both Commonwealth and state and territory, are coordinated and targeted.
Parliamentary inquiries and briefings
Throughout the year, Austrade appeared before the following committees:
- Parliamentary Joint Committee on the Australian Commission for Law Enforcement Integrity inquiry into the integrity of Commonwealth law enforcement operations overseas in October 2012
- Senate Foreign Affairs, Defence and Trade References Committee inquiry into Australia’s foreign, trade and defence policy regarding the Indian Ocean region in December 2012
- Joint Standing Committee on Foreign Affairs, Defence and Trade inquiry into Australia’s relationship with Timor-Leste in May 2013. Austrade also provided a submission to the committee in March 2013.
Services to government
Austrade provided services to the Minister for Trade and Competitiveness and the Parliamentary Secretary for Trade, including through the provision of departmental liaison officers in each office.
Austrade reported on its progress towards achieving the Government’s objectives through regular reports and briefing material. Austrade also met with the Minister and the Parliamentary Secretary, as well as their respective office staff, to give context to written briefs and discuss specific issues when required. In 2012–13, Austrade produced 94 written briefs, 67 submissions and prepared responses to 102 items of written correspondence.
Supporting ministers abroad
Austrade continued to provide support to relevant ministerial visits overseas during 2012–13, some of which are highlighted below.
Austrade provided support for an unofficial visit by the Hon Dr Craig Emerson MP, Minister for Trade and Competitiveness, to Kaohsiung, Taiwan, in September 2012 to participate in the Australia–Taiwan Business Council’s annual joint conference with the Republic of China–Australia Business Council. Dr Emerson, who was accompanied by a senior Australian business delegation, met with major Taiwanese companies, delivered a keynote address at the combined Joint Energy and Minerals Trade and Investment Cooperation Consultations and an official dinner, and opened the Austrade clean energy, technology and tourism infrastructure investment workshop, which was held in Kaohsiung and attended by 79 people.
In October 2012, Austrade worked with the Department of Education, Employment and Workplace Relations and the Department of Foreign Affairs and Trade for a visit to Myanmar by the Hon Bill Shorten MP, Minister for Employment and Workplace Relations and Minister for Financial Services and Superannuation. The Minister, who was accompanied by a business delegation, met with the President of Myanmar and senior government ministers, as well as representatives from business, banking, civil society and trade union groups.
In April 2013, Austrade worked with the Department of Foreign Affairs and Trade, the Treasury and the Department of the Prime Minister and Cabinet to provide support for the visit by the then Prime Minister, the Hon Julia Gillard MP, to China. As part of the Prime Minister’s program, Austrade supported a financial services delegation led by the Hon Bill Shorten MP; participated in a Business Council of Australia CEO round-table with senior Chinese business leaders; and supported the Australia–China Economic and Trade Forum organised by the Australia China Business Council.
In April 2013, Austrade also coordinated a program for the visit of the Hon Anthony Albanese MP, Minister for Infrastructure and Transport and Minister for Regional Development and Local Government, to Dubai, Paris and Madrid, where business meetings in infrastructure and transport were arranged. In Dubai, in conjunction with the Australian Business Council Dubai, Austrade organised a luncheon for 80 business representatives interested in infrastructure and investment opportunities in Australia. In Paris, Mr Albanese met with senior French rail officials and senior executives from the construction firm Bouygues to discuss their experiences with high-speed rail. In Madrid, Austrade organised a dinner, hosted by Jane Hardy, Australian Ambassador to Spain, for 20 CEOs of Spanish infrastructure investment companies. Mr Albanese met with the CEOs of Spain’s largest infrastructure companies with investments in Australia.
In April 2013, Austrade provided support to the Hon Kelvin Thomson MP, Parliamentary Secretary for Trade, for his visit to Hong Kong, Jakarta, Kaohsiung and Taipei. Austrade worked with the Department of Foreign Affairs and Trade to develop Mr Thomson’s program, which included meetings in Hong Kong with Australian companies participating in the International ICT Expo, as well as senior representatives from a number of key Hong Kong investors in Australia. In Jakarta, Mr Thomson represented the Australian Government at Ozmine 2013, the largest Australian Government mining initiative in the world. In Kaohsiung and Taipei, Mr Thomson promoted Australia’s international education credentials and Australia’s trade and investment interests across a range of sectors.
The Hon Kelvin Thomson MP (left), Parliamentary Secretary for Trade, and Greg Moriarty, Australian Ambassador to Indonesia, opening Ozmine 2013, in Jakarta, April 2013.
In May 2013, Austrade provided support to Mr Thomson for his visit to Chile and Colombia. In Colombia, Mr Thomson attended the ministerial meeting of the Pacific Alliance and met with leading business and industry representatives attending the associated CEO summit. In Chile, Mr Thomson met with the Minister for Labour and the Minister for the Economy to discuss several matters, including education and mining.
Visits by foreign government representatives
As well as providing support for visits by Australian ministers overseas, Austrade continued to provide support for visits by foreign government delegations throughout the year. Some examples are provided below.
In December 2012, Vietnam’s Transport Vice-Minister Truong Tan Vien led a ministerial delegation to Australia involving senior representatives from the ministries of Transport, Finance, and Planning and Investment. The aim of the visit was to promote transport infrastructure investment opportunities in Vietnam and learn from Australia’s experience in Public Private Partnerships (PPP). Austrade, together with AusAID, the Department of Infrastructure and Transport, the Department of Foreign Affairs and Trade and the Vietnamese Consulate in Sydney, coordinated a series of government and industry meetings for the delegation in Canberra and Sydney, and organised a PPP workshop and site visit to Sydney Airport.
In March 2013, Austrade worked with the Department of Foreign Affairs and Trade to support business seminars attended by the President of Mozambique, His Excellency Armando Guebuza, and senior government and business representatives. In Canberra, the President met with the Governor-General, the Prime Minister and parliamentary representatives and was also keynote speaker at an Australian Institute of International Affairs business luncheon.
Austrade worked with the Department of Climate Change and Energy Efficiency in March 2013 to host a round-table between Australian businesses operating in the clean energy, environment and water sectors and China’s National Development and Reform Commission Vice-chairman, Xie Zhenhua, who was in Australia to participate in the annual Ministerial Dialogue on Climate Change. Participants at the round-table discussed issues around building sustainable cities, energy efficiency and options to encourage Australia–China collaboration in these areas.
In March 2013, Bruce Gosper, Austrade CEO, met with the President of Myanmar, His Excellency U Thein Sein, and a group of Myanmar ministers, to brief the President on the opening of an Austrade office in Myanmar and the capabilities and interests of Australian companies in Myanmar.
In May 2013, Austrade worked with the Department of Foreign Affairs and Trade to invite and develop programs for senior delegations attending the Latin America Down Under conference, including ministers from Chile and Peru. Austrade provided business matching services to the visiting delegations, as well as additional assistance with the development of their programs in Australia.