Australia remains the largest market for mergers and acquisitions (M&As) in the Asia Pacific region. The total value of cross-border M&A sales hosted by Australia in 2007 was US$55 billion, with particular interest in the mining, manufacturing, utilities, media and property industries.

Foreign direct investment (FDI) in Australia totalled US$22 billion in 2007. The UNCTAD World Investment Prospects Survey has rated Australia in the 10 most attractive locations for FDI in its last two surveys of executives of the largest transnational corporations. According to the World Investment Prospects Survey 2008-2010, executives cited Australia’s access to regional markets, skilled labour and expertise, growth and size of market, natural resources, quality of infrastructure and government effectiveness as favourable factors for investment.

Major labour market and business taxation reforms, together with deregulation of industries such as finance, telecommunications and utilities, have also helped to attract foreign investment to Australia.

Multinational enterprises already in Australia continue to make further investments, as well as partnering with Australian small and medium sized enterprises and research institutions.