When tragic events inflict pain on our societies, true friends show themselves ready to provide help or comfort. So it was with the terrible floods on the NSW North Coast. Yamato Takada, the Japanese Sister City of Lismore was quick to send a donation and well wishes. Similarly, Japan suffered the loss of Prime Minister Shinzo Abe on July 8th to an assassin, an immense loss of such a close friend to Australia. At the State Funeral in Tokyo on September 27th Prime Minister Albanese was joined by three previous Australian Ministers in paying their respects. As PM Albanese said, it showed just how much Japan means to Australia.

These are not words of convenience and underline the political and security relationships that are complemented by the extensive commercial partnerships. The richness of this network is highlighted by the 59th Australia-Japan Joint Business Conference in Tokyo on October 9-11th. The first time I attended this conference was in the early 1990s and it had a very different composition of members in those days. Coal, LNG, iron ore, non-ferrous raw materials, steel makers and electric utilities were predominant. For this year’s conference there are companies in so many different sectors: social media, architecture, construction, civil engineering, funds management, IT, cyber security, power storage, hydrogen and infrastructure. There has been real synergy between the decades of established trust and success and the rapid transformation of collaboration in new technologies.

The Joint Business Conference also highlights the reemergence of international travel, a boost to all of us, both personally and for the economy. As Japan loosens its travel restrictions, I know many of my friends are already searching for great deals on the ski fields in Japan in January 2023. I expect a rush of international visitors to Japan, which will greatly help with economic growth. Australia moved early on this front and has already experienced a rebound in inbound arrivals, both tourists and permanent migrants. Population growth has been a key factor in Australia’s long term success and this in turn has given Japanese companies great confidence to make significant investments in Australia. Federal Government policy is aimed at raising the migrant visa cap from 165k to 195k in 2023. The growth rate of births has continued unchanged and will complement the migrant intake. This will support the tight labour market and further investments in infrastructure and energy.

Energy is another key sector for further partnerships between Australia and Japan. Some have said Australia is an energy superpower, whether that is in traditional sources or the new low carbon and renewables. Australia’s large land mass with much empty space, enormous amounts of solar radiation, windy coasts and ranges plus the capacity for hydrogen production for domestic and export markets. NSW and VIC are looking at the prospects for offshore wind turbines as well.

Finally, exports can take the form of energy, e.g., the Australia-ASEAN Power Link which will use solar power and battery storage based in the Northern Territory and transmitted by undersea cable to Singapore and Indonesia. There are so many innovative opportunities on the horizon that will be most successfully realized by trusted partners.

Author: Manuel Panagiotopoulos

Managing Director, Australian and Japanese Economic Intelligence