NSW business environment
Each year there is over $54 billion in private business investment in New South Wales (NSW). Companies choose NSW over other locations because of its:
- stable and diverse economy
- sound regulatory environment
- pool of highly skilled labour
- world class infrastructure
- access to Asia Pacific markets
Stable and diverse economy
The stability of the Australian economy is evident by the fact it has grown every year for 22 years. Within Australia, NSW produces more economic output than any other state.
NSW stands out from other locations because of its diverse economy. Over 80% of industry income is generated from services and NSW also has the largest manufacturing sector in Australia.
NSW is Australia's economic powerhouse and contains 43% of the top 500 companies in Australia.
Standard & Poor's and Moody’s have both given NSW a AAA credit rating. This reflects the local economy's strength in withstanding changing economic circumstances.
Sound regulatory environment
Australia's financial regulatory environment is recognised as one of the best in the world for promoting stability and certainty. The regulatory system is one of the reasons that Australia avoided recession during the Asian Financial Crisis and the global financial crisis.
Banks in NSW are well capitalised and a transparent framework oversees financial regulation in Australia.
Australia's IP legislation reflects international best practice.
Investors in particular are attracted to the ease of establishing a business in NSW. Australia is the third most efficient country in the world for starting a business, according to the World Bank (2010). It takes two days and two procedures to register a private limited liability company.
Pool of highly skilled labour
NSW stands out to investors because of its large number of highly educated people. NSW has 7.3 million residents, which is 30% more than the next largest state.
The State's population is highly educated. Of the working age population, 55% hold tertiary qualifications.
A key characteristic of Sydney is its multicultural society and its large number of multilingual citizens. One in three people in Sydney can speak a non-English language. Across Sydney there are 1.3 million residents who can speak a non-English language. Over 200 languages are spoken in Sydney.
World class infrastructure
Located only eight kilometres from the central business district, Sydney Airport is Australia's busiest airport. It accounts for 40% of Australia's international aircraft movements, with over 35 international carriers. There are over 1,000 international aircraft movements from Sydney each week. Sydney airport accounts for almost half of Australia's air freight.
New South Wales boasts competitive, reliable and world class electricity networks. For the last 10 years the electricity supply in NSW has been more than 99.97% reliable.
It is cheaper to establish commercial offices in Sydney than in most other Asian cities. Prime commercial office space in Sydney is cheaper than Singapore, Hong Kong, Mumbai and Tokyo. Leasing prime bulk industrial space in Sydney is similarly affordable.
Access to Asia Pacific markets
Investors are attracted to extensive links between NSW and international markets. Approximately two-thirds of NSW merchandise exports are to Asia. In 2008-09, the State's exports of goods and services were valued at $60 billion.
Each year Australia exports services valued at over $50 billion, with NSW accounting for more activity than any other State.
Australia is among the top ten destinations in the world for foreign direct investment, according to the United Nations Conference on Trade and Development 2009-11. Over the past five years, the world's investment in Australia has grown by 65%, with foreign direct investment expanding by almost 30%.
Each week there are over 250 flights from Sydney to Asia, and over 50 to North America.
There are 8 Foreign Subsidiary Banks in Sydney and 32 Foreign Banks with branches. Of the 63 authorised deposit-taking banks with operations in Australia, 48 are based in Sydney and all but two have operations in New South Wales.
If you are contemplating a significant investment in NSW, contact the NSW Trade & Investment as the first step to find out what assistance is available.
Investment and Export Services
NSW Trade & Investment
+61 (2) 9338 6600
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