New research reveals that while global leaders see Australia as a gateway to Asia with business-friendly regulation and an attractive labour market, their propensity to invest is slipping as Australia loses its top ranking down to number three.
When assessing a range of business dynamism factors in Grant Thornton’s Global Dynamism Index (GDI), Australia ranks 3 out of 60, behind only Singapore and Israel but slipping from number one place to third.
“The GDI reflects exactly what we’ve seen in the local M&A market, as reported in our Dealtracker earlier this year. Australia has the fundamentals to be a great place to do business, and is in a prime position for companies looking to enter the APAC region.
“We’re seeing interest from the US, Canada and Europe. On the flip side, we’re also seeing increased interest from companies in China, looking to invest in Australian businesses, particularly agribusiness to supply to its growing middle class
“For Australian mid-size businesses looking to sell, now is the time to maximise the value of the business by ensuring scalability and a good management team is in place as global leaders look to Australia to invest,” said Paul Gooley, National Head of Corporate Finance, Grant Thornton Australia.
But the drop to third place suggests particular attention must be paid to regulatory reform to keep global investors interested in doing business on our shores
“Despite the country’s stable regulatory environment, legislation of the ChAFTA is pivotal in ensuring a gateway to doing business with China. Developing a simpler, more efficient tax system must also be top of the Government’s agenda to ensure we remain competitive on the global stage,” said Mr Gooley.
Globally, Singapore offers the best business growth environment for dynamic businesses according to the GDI as a result of a strong financing environment. Israel (rank 2) has also risen six places this year. Finland (rank 3=) and Sweden (rank 5) have both risen slightly, due to favourable business operating environments and an advanced technology infrastructure.