Economic Development Minister Steven Joyce talked foreign direct investment (FDI) yesterday on a visit to Singapore, outlining what it is but not how to go about it.
Mostly, this investment has gone into capital assets providing a return, effectively displacing the next investor.
The unanswered questions, however, have been: How to use direct investment to lift economic performance, and on what terms.
In the almost 6 years of the Auckland super-city and its central infrastructure aims of upgrading the underground piping network and lifting the performance of the non-road transport network, a string of executives from foreign sovereign funds has visited Auckland Council, so far without result.
Mr Joyce has been on a quest to lift interest in New Zealand in new technology & innovative scientific business and said from Singapore, in a release out yesterday, he wanted to explore ways to strengthen the bilateral science & innovation relationship between the 2 countries and meet high net worth investors to promote New Zealand as an investment destination: “There is huge potential to grow the economic links between New Zealand & Singapore. Singapore is one of our most valued partners in the Asia-Pacific region. Whether it is in terms of tourism, 2-way trade or foreign direct investment, Singapore consistently ranks in our top 10 countries.
“Singapore has become a major source of foreign direct investment. Year-on-year foreign direct investment from Singapore has increased from $4.3 billion in 2014 to $5.6 billion in 2015 – growth of more than 30%. These investors are choosing New Zealand because they see opportunity. They see our growing economy, booming tourism, strong migration and a large pipeline of construction projects which will continue to stimulate growth.
“The Government wants to attract more high value foreign direct investment in our most competitive sectors, with a target of facilitating investments with a potential direct economic impact of $5 billion over 3 years. That investment would mean many more high value jobs for Kiwis.
“FDI creates jobs & businesses and provides funding to get infrastructure projects off the ground. High quality international investment can also help New Zealand firms to grow by forging international connections and enhancing access to export markets & complex global supply chains.”
Attribution: Ministerial release.