Australia and Asia: Growing integration
Source: PwC Melbourne Institute Asialink Index, 2011
“Australia has more trade and other economic relationships with East Asia than any other country save for Indonesia� John Denton, May 2012
An Asian Century:
“Australia must find its security in Asia, it cannot find its security from Asia” Paul Keating, November 2011
Rapid growth Americas
Europe
60,000
Asia
60,000
60,000
40,000
34,176 22,454
20,000
0
41,438 40,000 26,684 20,000
0 2011
2020 Year
Region GDP (US$bn)
CAGR +5%
Region GDP (US$bn)
Region GDP (US$bn)
CAGR +5%
CAGR +9% 44,605
40,000
20,000
20,874
0 2011
2020 Year
Note: In current prices, with 2011-2016 cumulative annual growth rate trend assumed to continue from 2016-2020 Source: IMF World Growth Projections
2011
2020 Year
Australia’s Competitiveness: Middle of the pack
Source: Business Council of Australia’s Submission to the White Paper on Australia in the Asian Century, 2012
Asialink / Ai Group / BCA research: Australian businesses understand the opportunity‌ 74% of businesses report interest in engaging or further engaging with Asia
China the priority, but a wide range of other countries also considered
Respondents (%) 100 80
China India 42
High or very high interest
60 40 20
65%
32
Some interest
39%
Malaysia
36%
Singapore
33%
Vietnam
33%
Indonesia 26
No interest
0
Businesses surveyed
Source: Australian Industry Group & Asialink Survey, March 2011
30%
Thailand
27%
Taiwan
26% 0
20
40
60
80
% businesses surveyed
Asialink / Ai Group / BCA research: ‌and Asia capabilities improve business performance‌
Businesses with more Asia experience at the senior management and executive leadership levels report better business outcomes in Asia
Source: Australian Industry Group, BCA & Asialink Survey, February 2012
Asialink / Ai Group / BCA research: ‌yet many businesses report being underprepared
Less than half of businesses with dealings in Asia report having any Board members or senior executives with Asian experience or language ability Asian experience
Source: Australian Industry Group & Asialink Survey, March 2011
Language ability
Asia Capable Workplace Framework BASIC PRACTICE
STANDARD PRACTICE
BEST PRACTICE
Strong Leadership and Vision
Senior management deals with the organisation’s Asian operations on an ad hoc basis
Senior management engaged in Asian operations, but not as major focus
Senior management committed to Asian operations with a long term outlook and strategy
Talent Development and Retention
Qualified management and employees but without clear understanding of Asia business culture
Organisation has management and employees with ‘Asia skills’ but is not drawn upon and developed effectively
Management and employees are culturally competent and given opportunities to enhance their skills
Productive Local Partnerships
Organisation builds up local presence in Asia from scratch through its Australian staff
Organisation uses networks to engage Asian business partner and puts Australian managers on the ground
Organisation invests in a long-term partnership with respected Asian business and trusts local Asian staff to make decisions
Aligned Internal Culture
Staff are not engaged in the organisation’s Asian operations or do not see their value
A portion of staff involved in Asian operations understand their value, but without link to overall company strategy
Staff as a whole believe in importance of Asia and see Asian work opportunities as valuable experience
Requisite Knowledge of Local Environment
Management have little to no knowledge of political context in which Asian business operates
Management are aware of the complexities of the local business environment but unsure of how to navigate
Organisation works with trusted local partner or intermediary that effectively navigates complex business environment
Supportive Systems and Processes
Organisation does not capture experiences or learnings from Asian operations
Management communicate the issues and learnings from Asian engagement internally but in an ad hoc manner
Skills and experiences from Asian engagements are embedded in future business practices
NEXT PRACTICE
The Business Sector:
Opportunities for investment
Surveyed businesses prefer executive education and provision of best practice research to other Asia capability-building services
Source: Australian Industry Group, BCA & Asialink Survey, February 2012