BT INVEST

A Personal Finance and Investment Arm of The Business Times
MARKET TODAY:

Archive

The Impact of Australian Innovation on Growth and Investment in Asia

By Wholesale Investor

The Impact of Australian Innovation on Growth and Investment in  Asia

The Impact of Australian Innovation on Growth and Investment in Asia

From the life-changing Cochlear implant, to the America’s Cup winning winged keel and the core technology of Wi-Fi that is still used today, Australian’s have traditionally been recognised internationally as a nation of innovators. With its, strong financial regulatory environment, pro-innovation government and well-recognised education system, Australia is now acknowledged on a global scale as a hotbed of emerging companies and entrepreneurship. Given its geographical location, this has not gone unnoticed by Australia’s northern neighbours, with strong interest in traditional sectors like agriculture and real estate, along with a newfound interest in sectors such as fintech, ICT, healthcare and food & beverage.

The Innovation Boom and the Australia/Singapore Relationship

With the recent push from the Australian government to drive the so called ‘ideas boom,’ there have been various legislation and regulatory changes that have formed a strong focus on innovation, entrepreneurship and emerging company investment. In December 2015, Prime Minister Malcolm Turnbull revealed his highly anticipated Innovation Statement that detailed the government’s changes aimed at assisting Australia in transitioning away from the resources boom. This included the push for creating stronger relationships between corporates, scientific institutions and universities, along with initiatives like tax exemptions and offsets for early-stage company investors. In conjunction with this, the Australian government is enacting various policies and frameworks that are enabling and simplifying more efficient links with Asia. As an example, the Singapore-Australia Free Trade Agreement (SAFTA) has encouraged the growth of the economic relationship with Australia’s largest trade and investment partner in ASEAN, by eliminating tariffs, increasing market access for Australian services, providing a more open and transparent business environment, as well as the establishment of Singapore as one of the five “Landing Pads” for entrepreneurs and innovators.

Activity of Asian Investors in Australia and New Zealand

As Australia moves into an innovation age, both local and regional investors have become a key pillar in providing high growth companies with the expertise and resources to become global businesses. Whether it is the reinvestment of capital from previous successful investments, providing a skillset to assist in structuring a deal, opening doors to new trade opportunities, or the ability to introduce new investor networks, the High Net Worth (HNW) and accredited investor community can afford an emerging business with the tools and support to scale exponentially.

Local entrepreneurs accept that with Australia & New Zealand’s small population and Asia’s rapid GDP development and new middle class, they need to be looking at the region for future growth. Thus, in order to access this market, they need to identify the right strategic or active investor(s) and/or partner(s) that enable them to expand their business into the region. A good example of this is the Martin Aircraft Company (ASX: MJP), who have commercialized the world’s first practical jetpack, which is poised to alter the dynamics of aviation. In December 2014, the company signed a long term strategic partnership with Hong Kong based KuangChi Science, whereby they would have a major shareholding in MJP. This investment was for approximately AUD $21 million into their IPO, with the remaining in a convertible note that has since been exercised earlier in 2016. MJP listed in February of 2015 at $0.40 per share and since that point in time, the share price has reached highs of $3.15, and is currently trading around the IPO price of $0.40.

Leveraging Innovation and Capital for Growth in Southeast Asia

As can be seen from the above example, there is a tremendous opportunity that exists for investors in Asia looking for strategic and/or active investments into entrepreneurs and innovators that are coming out of Australia and New Zealand. Platforms such as Wholesale Investor, provide accredited investors in Asia with access to some of Australia and New Zealand’s most fascinating private, pre-IPO, IPO and small cap listed companies. They regularly host investor events in Asian cities like Singapore, Hong Kong and Seoul, that provide growing companies with the platform to profile, promote and pitch their investment opportunities to an audience of local accredited investors.

Join Wholesale Investor this coming 6th June, Monday from 10AM to witness these small cap listed companies as they share insights and pitch the opportunities. Click here to find out more now.

 
Wholesale Investor

Wholesale Investor
Wholesale Investor is Australia and South East Asia’s largest private investment platform, connecting high net worth and professional investors with private, pre-IPO and small cap listed investment opportunities. The role of Wholesale Investor is to provide companies with direct exposure to active investors and dealmakers and vice versa. On Monday, June 6th at NTUC Auditorium, Wholesale Investor will be hosting the Singapore Capital Expo, where they will showcase some of Australia, Singapore and New Zealand’s leading emerging entrepreneurs and growth companies. For more information, please go to www.wholesaleinvestor.com.au and click on the ‘Events’ tab.