In an ANZ report titled ANZ Opportunity Asia, 76 per cent of businesses that expanded into Asia said their profits increased or will increase in the future.
ANZ managing director of corporate and commercial banking Mark Hand said companies doing business in Asia have a “far brighter future”.
“There is clearly a huge opportunity for Australian businesses to grow and prosper by trading with Asia,” he said.
Moreover, 47 per cent of businesses indicated that revenue derived from Asian operations was higher than that derived from Australia-based operations. ANZ said this was true across all market segments, including small, medium and larger-sized businesses.
Eighty-four per cent also said their Asian expansion made sustainable growth far more achievable.
The report found that China is the most popular destination for Australian businesses, with 76 per cent of businesses with operations in Asia doing business in China.
It argued that China’s popularity is not surprising, with the country achieving an average of 9.5 per cent annual GDP growth over the past 10 years.
“This trend is likely to increase with necessity driving China’s decision to open up foreign investment in healthcare, which has largely been a no-go zone in the past,” the report stated.
Mr Hand said there is a misconception among businesses that have not entered the Asian market about the difficulties associated with investing in Asia.
“Successful Australian companies said the key wasn’t overcoming cultural or language issues or navigating policy and regulation,” he said.
“It came down to good business practices, such as knowing demand, quality products and services.
“No doubt there are risks; however, the findings of this report demonstrate that not considering the opportunity may be even riskier,” Mr Hand said.
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