Access Asia Magazine Jun / Jul 2019: Australia in Focus by AustCham Singapore

AUSTRALIA IN FOCUS ASEAN-AUSTRALIA 2019 SPECIAL SUMMIT 2018 APR/MAY

JUN/JUL

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A MESSAGE FROM THE

PRESIDENT

Dear Members, Now the dust has settled and we have an end to election analysis around how the pollsters got the forecast of the Federal election so wrong it’s time to focus on business. The current USA and China trade tensions are impacting many countries who supply China with goods for further processing and onward sale to the US. Singapore is not spared given China is its largest trading partner with many manufacturers shipping high value intermediate products . The flip side of course is an advantage for ASEAN as companies reassess their supply chains and look to AESEAN countries as sources for their goods. This focus will add to the increasing attraction the world is finding with ASEAN’s expanding 635 million population complete with growing incomes. Singapore can benefit not only as a manufacturer with a Free Trade agreement with the US but also as the regional hub for financing and logistics that can support companies as they expand their operations in the region. Indeed more companies may select Singapore as their regional headquarters. All of us located here know the benefit of Singapore as the springboard for the rest of the ASEAN region. In a recent article* Andrew Robb AO Chair Asialink Business and a former Trade and Investment Minister points out that despite the explosion of the middle class markets in Asia only 13% of Australian SMEs export to markets outside of Australia. AsiaLink Business estimates annual services exports to Asia could be worth $160b by 2030 but as Andrew points unlike resources, supplying services companies need proximity and on ground knowledge. In a great plug for locating business in Singapore he points out “if we don’t increase Asian experience, knowledge and networks in Australian businesses there’s little hope to win against increasingly sophisticated regional competitors who are closer to the action”. While both Labor and Liberal parties have different policies with respect to engagement with Asia it is clear that that the potential in ASEAN is enormous. We need to encourage more Australian companies to take up the challenge and realise the opportunity so that Australia’s economic miracle of 28 years of uninterrupted growth continues for the benefit of all Australians. I look forward to seeing many of you at the AGM on Monday June 24th. *Companies must look offshore for Growth, Andrew Robb and Luke Hurst The Australian, May 2 2019

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Front Cover: Hon Scott Morrison MP at AustCham Singapore lunch

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A MESSAGE FROM THE

EXECUTIVE DIRECTOR

CONTENTS 6

FOREIGN POLICY UPDATES: AUSTRALIA AND SINGAPORE WORKING TOGETHER TO HELP BUILD ASEAN'S LIVEABLE CITIES

THE POST-ELECTION STATE OF AUSTRALIAN FOREIGN POLICY

If you couldn’t make it to our Post Election panel discussion event you can read the event recap on page 24. With insights from Straits Times Australia Correspondent Jonathan Pearlman and Select Investors Tristan Perry and moderated by Pamela Qiu from the Economist Corporate Network the event covered the political implications of the result as well as what it means for expats and your business.

AUSTRALIA'S COALITION GOVERNMENT RETURNED

LUNCH WITH THE HON SCOTT MORRISON MP PRIME MINISTER OF AUSTRALIA

NAVIGATING A TOUGHER ENVIRONMENT

We’ve also asked various commentators and experts in trade and international business for their thoughts on the result and what this means for Australia’s foreign policy agenda and trade positioning in the current global context.

A GAME OF TRUTHS IN ASIA

STRENGTHENING INTERNATIONAL PARTNERSHIPS WITH A GUEST PROFESSORSHIP

EVENT RECAP

UPCOMING EVENTS

OUT & ABOUT

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NEWSFLASH

Welcome to the June / July edition of our Access Asia magazine. In this issue we’re taking a look at the results of the recent Australian Federal Election. With a victory for the coalition that went against what many commentators predicted it took a lot of people by surprise – including Australian betting company SportsBet that payed out two days before the election on Bill Shorten becoming Prime Minister.

The Hon Scott Morrison Prime Minister of Australia just visited Singapore as one of his first overseas trips after the election win. AustCham hosted a lunch with more than 400 members of the Australian and international business community attending. The Prime Minister spoke about the importance of the Singapore Australia relationship and global trade, while recognising the achievements of key Australian businesses and research institutions like our presenting sponsor for the event BlueScope, and supporting sponsor James Cook University. You can see more highlights from the event in the special feature in this edition.

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FOREIGN POLICY UPDATES

AUSTRALIA AND SINGAPORE WORKING TOGETHER TO HELP BUILD ASEAN'S LIVEABLE CITIES

H.E. BRUCE GOSPER Australia’s High Commissioner to Singapore

On 4 June 2019, the Australian High Commission in Singapore hosted its inaugural Regional Built Environment Forum (BEF) 2019. The BEF brought together more than 200 representatives from Australian, Singapore and multinational built environment companies, both governments, NGOs and officials from ASEAN cities to promote Australia’s built environment capability, partnerships, investments and commercial opportunities in the ASEAN region. The Building and Construction Authority (BCA) and Infocomm Media Development Authority (IMDA) were supporting agencies, supplying speakers and facilitating participation by Guest of Honour, Ms Sim Ann, Senior Minister of State, Ministry of Communications and Information & Ministry of Culture, Community and Youth. The aim of the BEF was to showcase Australia’s capabilities in the built environment and highlight how Australian companies and organisations can – and are currently – partnering with countries in our region to support ASEAN’s unfolding urbanisation story. The enthusiastic response from sponsors, prospective speakers, built environment companies, Singapore Government agencies and ASEAN participants demonstrated the strong appetite for this event and the networking opportunities it facilitated. All ASEAN Member states were represented. Substantively, the BEF was an all-day conference on Tuesday 4 June 2019 with two keynote speeches and five discussion panels on ‘Cities of the future in Asia’; ‘Digitalisation of Urban Environments’; regional built environment opportunities; the sector’s future skills and education needs; sustainability and city resilience; and, platforms and partnerships for commercial opportunities. AustCham ASEAN’s Senior VicePresident Dr Fraser Thompson moderated the BEF’s discussion panel on Regional Opportunities in the Built Environment. Key insights from the BEF include: the importance of leadership; shifting the focus from digital technology itself to the desired outcomes that technology can deliver for us; the critical importance of ‘soft skills’ as we deal with digitalisation; understanding that access to energy determines opportunity, growth and prosperity; acknowledging that our existence is no longer just about balancing socio-economic considerations, but socio-techno-economic factors; and, the importance of predictability, transparency and a pipeline of built environment projects to encourage investment, partnerships and mitigate risk. Two major announcements were made at the BEF: a MoU signing between Austrade and Singapore’s IMDA to collaborate on Smart Estates and drive built environment technology projects in both countries; and, the launch of the Australian Government’s ASEAN-Australia Smart Cities Accelerator, which will be provided by Singapore-based startups accelerator, Accelerating Asia. “The ASEAN Smart Cities Accelerator is a big step in Australia’s efforts to make the vision of smart cities into reality,” said Australia’s High Commissioner to Singapore, His Excellency Bruce Gosper. “The Australian High Commission is proud to support the programme 6

High Commissioner Bruce Gosper delivers welcoming remarks to BEF 2019. and will continue to actively work with Accelerating Asia to leverage all the opportunities this programme offers to regional startups.” In his closing remarks, High Commissioner Gosper emphasised that the Australian High Commission, including co-located agencies Austrade and CSIRO, are in Singapore to help built environment companies go about their business in Singapore and work with Singapore Government and business to make the most of being in Singapore, and doing business with partners in the region. The BEF would not have been possible without the generous support of our corporate sponsors, The Australian National University, Curtin Singapore, James Cook University Singapore, Jones Lang LaSalle (JLL), Kaer, Lendlease and Murdoch University. We also thank Singapore’s Building and Construction Authority (BCA) and Infocomm Media Development Authority (IMDA), who were supporting agencies for our Forum. In addition to representatives from supporting agencies and corporate sponsors, participating organisations included: 100 Resilient Cities, AECOM, Arup, Asian Development Bank, AustCham, Aurecon, major Australian banks, Australian state governments, Australian universities, CISTRI, Singapore’s Centre for Liveable Cities (Ministry of National Development), John Holland Group, MANN+HUMMEL, Meinhardt, Singapore’s National Research Foundation, Singapore universities, Smart Cities Council ANZ, Singtel, SkillsFuture Singapore, Surbana Jurong, Telstra, Singapore’s Urban Redevelopment Authority (URA), The World Bank and Worley Parsons. More than 200 attendees representing around 100 organisations attended. Cities officials from Brunei, Cambodia, The Philippines, Indonesia, Lao, Malaysia, Myanmar, Thailand and Vietnam travelled to Singapore for the BEF, supported by DFAT. Some ASEAN embassy officials based in Singapore were also in attendance.

INSIGHT

THE POST-ELECTION STATE OF AUSTRALIAN FOREIGN POLICY PENNY BURTT Group CEO Asialink

DONALD GREENLEES Senior Advisor Asialink

Scott Morrison managed to win the recent election without elucidating an extensive policy agenda – no more so than in foreign policy. It has left Morrison with considerable freedom to move, as Asialink’s Donald Greenlees and Penny Burtt explain. But the challenges Australia faces in Asia, especially managing ties with China, will test a Prime Minister who is yet to prove his skill on the international stage. The Australian election campaign had its foreign policy moments: nothing to really enlighten, but enough to remind voters that lurking below the surface there were some acute differences both between and within political camps over the choices the nation faces in an Asia that looks simultaneously more profitable and more threatening. Not surprisingly, it was China policy that caused the few flashes of controversy. There was the sight of Labor’s foreign affairs spokeswoman, Penny Wong, refusing to shake the hand of Trade Minister, Simon Birmingham, at the Adelaide Press Club, an apparent rebuff for Birmingham claiming Labor was divided on how to deal with China. Birmingham was engaging in “really desperate politics”, according to Wong. “It’s not in your national interest.” The trigger for that episode was an intervention by former prime minister Paul Keating. Using the kind of colourful language that kept the press, if not the voters, entertained in the 1980s and 90s, Keating claimed the leaders of Australia’s intelligence community were “nutters”, paranoid about the rise of China. He advised Labor leader Bill Shorten to “clean them out” if he won the election. As it turned out, the China problem wasn’t going to be Shorten’s to solve, because much to the surprise of pundits - and Asian diplomats cabling back to their national capitals - Scott Morrison pulled off a ‘miraculous’ election victory. Part of the electoral miracle was that it was achieved with a policy platform that could be summarised as ‘more of the same’. This is especially true of foreign policy. The little eruptions aside, the 2019 campaign was notably devoid of serious debate over the very real international challenges facing Australia or any new ideas for how Australia might tackle them. Labor’s FutureAsia document offered some new initiatives and a comprehensive statement of intent, but it did not catalyse debate over Australia’s external options. Wong didn’t even get to match wits with her counterpart Marise Payne, although not for lack of trying. Whatever differences bedevil foreign policy choices, they seldom get aired. When they do, disagreement is mostly about nuance and emphasis. A pragmatic bipartisanship prevails, particularly on national security. It often boils down to a matter of which side can do it better rather than differently. But whoever won government on 18 May was going to face some tough choices in foreign policy over which there is no easy consensus. The biggest of those is how to manage the China relationship. This was

>> THE POST-ELECTION STATE OF AUSTRALIAN FOREIGN POLICY

underscored by the initial reaction from China to Morrison’s victory. The state-run China Daily accused Morrison’s government in an editorial of treating China with “bias and suspicion” and urged Canberra to “recalibrate” relations with Beijing. As Penny Wong said last year, if Australia is going to get Asia right “we need to get it right with China”. Neither side of politics has a magic formula for how to do this. There remains the – probably unreal – belief that tensions between China as economic opportunity and China as strategic disruptor can be disentangled, contained or somehow harmonised. In other words, hard choices can be either postponed or avoided. Morrison is fortunate to start his first full term in office with a relatively free hand. In the only major foreign policy speech he has given – to the Asia Society last October – he limited his remarks on China to two basic propositions: Australia is committed to deepening its Comprehensive Strategic Partnership with China; and it can confidently rely on its “beliefs and values” to navigate the growing competition between China and the USA. One of the China initiatives launched on his watch was the $44 million National Foundation for Australia-China Relations, which is intended to bring together the private sector, civil society, state and federal agencies and the Chinese-Australian community to “turbo-charge” the effort to engage China. The test for Morrison will be to strike the right balance in the opportunity-threat narrative. Even within his own ranks, he faces a range of perceptions over the size of the challenge China presents to core national interests. Still, he can count on a relatively high degree of bipartisanship with Labor, barring foreign policy blunders. For example, Labor supported the exclusion of Huawei from the 5G mobile network and the espionage and foreign interference law. Morrison’s Asia Society speech offered some insights into a broad foreign policy approach. He expressed concern that foreign policy was too often assessed through “a transactional lens”. Morrison stressed a more values-driven diplomacy that included a belief in the market, acceptance of diversity, rights to civil freedoms, respect for the rule of law and a commitment to democracy. It also included the fundamental proposition of mutual respect for sovereignty. “We believe in being good neighbors – regardless of whether there are differences in how we see the world and run our respective 8

societies,” he said. “We also believe this should be a two-way street. We respect their sovereignty and their right to run their own show.” This suggests Australia’s engagement will be predicated on two things: it won’t compromise its principles in pursuing economic or security gain, but it won’t foist those principles on others either. Those who would like to see Australia pursue a human rights or democratisation agenda are likely to be disappointed. The country has had a lot of experience dealing with neighbors of a fundamentally different disposition. Between 1975 and 1999 Australian foreign policy with Suharto’s Indonesia was conducted on the basis that human rights and concerns over East Timor would be discussed quietly behind-the-scenes. That was commonly justified as being ‘more effective’. A similar approach has been playing out in relations with China. Indeed, the government is likely to calculate that the less China relations are publicly debated, the easier they will be to manage. However, in other areas Morrison’s commitment to values has already been shown to be a double-edged sword. His decision to float the idea of shifting Australia’s embassy in Israel from Tel Aviv to Jerusalem upset Muslim-majority Indonesia and Malaysia. At a time when Australia needs to engage more closely with its neighbours in Southeast Asia, including to diversify its economic opportunities in the region, the move did not help. The episode underscores Morrison’s relative inexperience on the international stage, notwithstanding his time as immigration minister and treasurer dealing with the vexed issue of people smuggling and foreign economic policy in the G-20. Early visits by Morrison and his new Cabinet to the key countries in the region should be a high priority. The G20 Osaka Summit in late June will also be an important opportunity for the Prime Minister to engage his peers and reassure the key players that our relationships in Asia matter. Morrison now has time to grow in the job and prove he is as adept a diplomat as he is a political campaigner. There is a vast array of tricky relationships to handle and big decisions to be made in foreign policy to consolidate Australia’s ties with Asia. Managing China relations will surely be the most important of them all.

AUSTRALIA'S COALITION GOVERNMENT RETURNED Australia’s federal election has returned the Liberal National Coalition to power in a result that bucked the trend of major opinion polls. BEN HAMILTON Managing Director Strategic Communications, Sydney FTI Consulting

DAMON HUNT Senior Advisor Strategic Communications, Adelaide FTI Consulting

SHANNON WALKER Senior Director Strategic Communications, Melbourne FTI Consulting

The Labor Opposition was widely tipped to take Government, with opinion polls over the past three years showing strong support on a twoparty preferred basis. However, Labor failed to win support in the state of Queensland, fell short in the southern state of Victoria (where a Labor State Government was returned to office in late 2018), and expected gains in Western Australia also failed to materialise. Labor released more policies than any Opposition in recent times but couldn’t convert their policy agenda into strong support on polling day. Commentators and analysts are pointing to the complexity of Labor’s policy agenda and a perception that Labor’s economic policies would impact middle income households and retirees. There was business concern about Labor’s industrial relations policies, while in Queensland voter support fell away because of concerns about the future of resource development projects under a Labor administration, with a focus on coal mine development in the Galilee Basin, particularly Adani’s Carmichael mine. The Coalition will form Government with a majority in the House of Representatives. In the Senate, the Coalition will fall short of a majority, and will instead have to rely on up to five crossbench Senators to pass legislation. This is not an unusual situation as few governments have had a majority in both chambers. While the number of crossbenchers is smaller than the previous parliament, it will still be a balancing act in the Senate as the Government moves to implement the policy commitments made through the election campaign. Prime Minister Scott Morrison now has a clear mandate to lead – he’s being widely praised for leading the Coalition to what is being termed a ‘miracle’ win, and it’s unlikely that the leadership instability that marked the last term of Government will be repeated. Morrison was only elevated to the top job in August 2018 in a party room ballot following a leadership challenge against former Prime Minister Malcolm Turnbull. His widespread appeal to what is being termed ‘the quiet Australians’ – middle income earners in suburban, regional and rural areas – assures him of the continued support of the Coalition party room. Meanwhile, the Labor Party enters a period of deep reflection. In addition to electing a new leadership team, the party will need to understand what went wrong for them in this ‘unlosable election’. They will also be looking at how they can rebuild and reconnect in an environment where their primary vote went backwards and their policy agenda was widely rejected. Local markets responded strongly to the election result – the ASX All Ordinaries Index was up 10 percent on the first post-election trading day on the back of strong results from the finance and insurance sectors.

>> AUSTRALIA'S COALITION GOVERNMENT RETURNED

Australia’s federal election has returned the Liberal National Coalition to power in a result that bucked the trend of major opinion polls.

an environment where their primary vote went backwards and their policy agenda was widely rejected.

The Labor Opposition was widely tipped to take Government, with opinion polls over the past three years showing strong support on a two-party preferred basis.

Local markets responded strongly to the election result – the ASX All Ordinaries Index was up 10 percent on the first post-election trading day on the back of strong results from the finance and insurance sectors. Whether that confidence remains is yet to be seen, but with the Coalition’s pro-business agenda, it’s likely to give a much-needed boost to the local market for some time to come.

However, Labor failed to win support in the state of Queensland, fell short in the southern state of Victoria (where a Labor State Government was returned to office in late 2018), and expected gains in Western Australia also failed to materialise. Labor released more policies than any Opposition in recent times but couldn’t convert their policy agenda into strong support on polling day. Commentators and analysts are pointing to the complexity of Labor’s policy agenda and a perception that Labor’s economic policies would impact middle income households and retirees. There was business concern about Labor’s industrial relations policies, while in Queensland voter support fell away because of concerns about the future of resource development projects under a Labor administration, with a focus on coal mine development in the Galilee Basin, particularly Adani’s Carmichael mine. The Coalition will form Government with a majority in the House of Representatives. In the Senate, the Coalition will fall short of a majority, and will instead have to rely on up to five crossbench Senators to pass legislation. This is not an unusual situation as few governments have had a majority in both chambers. While the number of crossbenchers is smaller than the previous parliament, it will still be a balancing act in the Senate as the Government moves to implement the policy commitments made through the election campaign. Prime Minister Scott Morrison now has a clear mandate to lead – he’s being widely praised for leading the Coalition to what is being termed a ‘miracle’ win, and it’s unlikely that the leadership instability that marked the last term of Government will be repeated. Morrison was only elevated to the top job in August 2018 in a party room ballot following a leadership challenge against former Prime Minister Malcolm Turnbull. His widespread appeal to what is being termed ‘the quiet Australians’ – middle income earners in suburban, regional and rural areas – assures him of the continued support of the Coalition party room. Meanwhile, the Labor Party enters a period of deep reflection. In addition to electing a new leadership team, the party will need to understand what went wrong for them in this ‘unlosable election’. They will also be looking at how they can rebuild and reconnect in

The usefulness of opinion polling is now being heavily questioned – and pollsters are now trying to work out where it all went wrong. It will be interesting to see how that industry redefines how polling can be used in future. So what’s next? Although the Government will be buoyed by their election victory, they will remain deeply pragmatic. It is likely that Prime Minister Morrison will lead from the political centre, manage a more cohesive party, and reach out to the non-traditional voters (such as blue-collar workers) that contributed to his electoral success. The Coalition’s policy agenda is likely to be a continuation of what was started in the previous term, with the addition of personal tax cuts being offered to workers at all salary levels, but particularly for higher income levels over the long term. Although there is continuity here, the renewed authority of the Prime Minister and his reputation as a ‘can do’ political leader suggests that this term could include some more bold initiatives. We expect the new cabinet to be very similar to the previous government, with only minor movements in portfolio responsibilities. FTI Consulting’s public affairs team can provide more detail on the new government’s policy agenda and how it will impact local and international businesses. The views expressed herein are those of the authors and do not necessarily reflect the views of FTI Consulting or its management, affiliates, subsidiaries or other professionals. FTI Consulting is an independent global business advisory firm dedicated to helping organisations manage change, mitigate risk and resolve disputes: financial, legal, operational, political & regulatory, reputational and transactional. FTI Consulting professionals, located in all major business centres throughout the world, work closely with clients to anticipate, illuminate and overcome complex business challenges and opportunities. Connect with us on Twitter (@ FTIConsulting), Facebook and LinkedIn. FTI Consulting, Inc., including its subsidiaries and affiliates, is a consulting firm and is not a certified public accounting firm or a law firm.

LUNCH WITH THE HON SCOTT MORRISON MP PRIME MINISTER OF AUSTRALIA

On Friday 14 June 2019 PM The Hon Scott Morrison MP, Prime Minister of Australia spoke to over 400 AustCham members and guests from the Australian and international business community. Prime Minister Morrison spoke about the strong Singapore and Australia relationship, what this means for business and about trade opportunities in the region.

I am here today to underline that my Government’s agenda, both here and across Asia, is about expanding opportunity through connectedness. And nowhere better exemplifies this commitment than our close partner Singapore.

Read PM Morrison's speech at AustCham's lunch with The Hon Scott Morrison MP, Prime Minister of Australia.

Singapore is perhaps the best example on the planet of the success and prosperity that flow when a country connects with the rest of the world, opens its markets and embraces free trade. That’s also been Australia’s path for many years. So it’s good to be back.

It’s fantastic to be here in Singapore, along with Marise Payne and Simon Birmingham. I want to acknowledge our High Commissioner Bruce Gosper and his team.

We have close and common interests. And a long history together. In 1965, when Singapore emerged as an independent nation, Australia was the first country to establish diplomatic ties.

And a big thank you to AustCham - firstly to Amber Williams for that warm introduction and to Adam and your team. Not only for hosting us today, but for everything you do to advance the warm and enduring relationship between Australia and Singapore.

Our then Prime Minister, Sir Robert Menzies, and Singapore’s great statesman, Lee Kwan Yew, forged a friendship and foretold a vision of growth that has been amply fulfilled.

Singapore is a place where hard work, enterprise, and entrepreneurial risk-taking are encouraged. Singapore - the world’s second biggest port - is the ultimate Smart City.

In 2015, on the 50th anniversary of that pact of friendship, our nations committed to a Comprehensive Strategic Partnership: a framework for cooperating across the breadth of our relationship. Australia values deeply this connection with Singapore. Our relationship is longstanding and multifaceted. Our agenda spans trade and investment, regional infrastructure and smart cities, the digital economy, education, arts, and defence and security. Our cooperation on science and innovation is strong. We work together on Fintech. We work on economic improvement for women in the region. We work on counter-terrorism and defence strategy. And we are always working on improving the way Australian businesses find their way into the promise of this thriving marketplace. I know the strength of today’s turnout is a testament to what you’re already achieving here. Many of you are already flying Australia’s flag here and elsewhere in Southeast Asia – from Hanoi to Manila to Kuala Lumpur to Jakarta – and we want to support you to do even more.

countries are enthusiastic about this work. Australia and Singapore cosponsored the East Asia Summit Leaders’ Statement on Deepening Cooperation in the Security of ICT and the Digital Economy. Later this year, the High Commission here will host a Digital Economy Forum to better explore that opportunity. According to this year’s IMD World Competitiveness ranking, Singapore is the world’s most competitive economy. Ever since the early 80s we have proved again and again that we’re better off open to the world than closed to its possibilities. Better off engaged in the world than in retreat from its challenges. These beliefs are not only our outlook on the world, but our plan for success at home. Australia’s economy is growing, now approaching an unprecedented 28 years of economic growth. But it is growth we never take for granted. It requires continual effort. Having successfully secured re-election last month my government is back at work, getting on with the job of implementing our national economic plan. We have just handed down the first Budget surplus in 12 years. Our AAA credit rating has been strengthened and we will eliminate net debt within the decade. More Australians are in work than ever before. Over 1.3 million new jobs have been created since the September 2013. Our economic plan will see 1.25 million more jobs over the next five years, with one in five of these jobs will be for young Australians. With jobs growth outstripping all of the G7. Our plan is for less tax and not more. Companies like Bluescope, a global manufacturer, are thriving here. Lendlease, a global leader in construction, is redeveloping the Paya Lebar Quarter into a world-class city precinct and business hub. And it’s not only businesses. James Cook University continues to invest significantly in Singapore, our biggest offshore education hub. CSIRO and the Australian National University recently opened regional offices here. Austrade’s Landing Pad is also very successful, with many graduate start-ups attracting capital and choosing to base themselves here in Singapore. On infrastructure, the opportunity for Australia and Singapore to support Southeast Asia’s unfolding urbanisation is growing day by day. We’re already investing in a number of ways: through our aid program; in partnership with the US and Japan; through a new Infrastructure Governance Facility for the region; and through the ASEAN-Australia Smart and Sustainable Cities initiative.

We are providing tax relief to Australia’s 3.4 million small, family and medium sized businesses that employ over 7 million Australians. Ten million Australians are receiving personal income tax relief. Legislating our personal tax relief plan in full will be the first substantive business of the new Parliament, keeping faith with the will of the Australian people expressed at the election. Under our we are making record investments in health, education and infrastructure - and in the essential services that Australians rely on. We are proceeding with the big projects governments have talked about for fifty years and have not done. Faster rail, inland rail and airport rail links are being funded. By 2026, when you are deciding to travel or send freight to Sydney – you will have the choice of not one airport but two. We are investing in our productive capability – in the transport infrastructure that will lower freight costs, bust congestion, and help Australia grow. Trade is foundational to this government’s agenda.

When we met this morning, Prime Minister Lee and I talked about one thing that will be absolutely pivotal to any country’s success in the years ahead: the digital economy. While we have ambitious digital trade commitments with Singapore under TPP-11 and the Singapore-Australia FTA, we want to do more together in this area. Australia seeks digital trade rules and standards that build trust and confidence, and by deepening cooperation with Singapore we can set a benchmark for others in the region to adopt. So we will deepen our work together to help our businesses and consumers capitalise on the manifold opportunities in the digital economy. Today we also discussed the practical ways we collaborate, for example working with Singapore and Japan on e-commerce rules in the World Trade Organization. We also looked at how we can cooperate more on the jobs and businesses of the future, and both 13

Around 1 in 5 Australian jobs are trade-related, and Australian households are $8,500 a year better off because of opening up our trade over the last thirty years. When our Government was first elected, free trade agreements covered around 26 per cent of our two way trade. It’s now over 70 per cent.

last year. Australia and Singapore are not only natural friends, but strategic partners with shared interests in the stability and prosperity of our Indo-Pacific neighbourhood. We have a vision of an open, inclusive and prosperous Indo-Pacific. This includes wanting to see an inclusive architecture for regional trade as Singapore, Australia and other partners work to finalise RCEP and that our existing trade agreements keep pace with technological change, especially the digital economy. My visit today aims to expand our growing cooperation on shared regional objectives, including by defending the proposition that international rules and norms help trade, underpin our common prosperity and help keep the peace. The global trading system is under real and sustained pressure. Trade conflict between the US and China is testing the system as never before. No-one suggests the framework of rules in the WTO is perfect – far from it. Each year Singapore hosts the Shangri-La Dialogue, which exemplifies what Singapore is about.

Agreements with Japan, China, South Korea and the 10 other nations of the Trans-Pacific Partnership. Of course, we have a long-standing FTA with Singapore which was amended and strengthened in 2017 - providing greater access for education, legal, financial and other professional service providers.

Openness, connections, a regional focus with a global perspective. It shows that in Southeast Asia we need security and peace to maintain our prosperity. At this year’s Shangri-La Dialogue, held last week, there was a remarkable convergence of themes raised by colleagues from the region.

Our export agreements, have provided improved access to markets with 1.75 billion consumers. Our monthly trade balance is running at record levels, just under $5 billion in surplus in April, with the longest consecutive run of monthly surpluses since 1973 – over 45 years ago. Our continued success depends on being open to trade and investment. We don’t get rich selling things to ourselves.

In his insightful speech, Prime Minister Lee said – and I fully concur – ‘We need to reform and strengthen multilateral institutions, not cripple or block them’. He also said: “The bottom line is that the US

Our plan to further expand our trade opportunities will see 10,000 more Australian companies export beyond our shores by 2022, with around 90 per cent of our trade covered by trade deals. We have skills and resources in abundance that the rest of the world wants. And we are a reliable partner. The dividend for us of a strong, stable region is more jobs, more opportunities, more years of uninterrupted growth to add to the 27 already on the board. So as this region transforms and evolves, it makes sense for Australia to deepen our engagement, and not just economically. Australia is strongly committed to deepening ties with Southeast Asia, exemplified by our convening of the ASEAN-Australia Special Summit

and China need to work together, and with other countries too, to bring the global system up to date, and to not upend the system.” In her first major speech as my new Defence Minister, Senator Linda Reynolds, said here at Shangri-La: “Australia’s Indo–Pacific vision reflects our national character and also our very unique sensibilities. We want a region that is open and inclusive; respectful of sovereignty; where disputes are resolved peacefully; and without force or coercion.” Minister Reynolds was joined by others from the region who also adopted a counter perspective to the contemporary analysis that interprets decision making in our region though a narrow binary prism. As independent sovereign nations in the Indo-Pacifc we don’t see our options as binary, and nor do we wish them to become so. Philippine Defense Secretary Lorenzana said “‘Let us be clear: each and every nation has a shared and unquestionable responsibility in preserving peace and prosperity in the Indo-Pacific region.’ General Ngo Xuan Lich, Vietnam’s Minister of National Defence, said “What matters the most is finding ways to handle competition...to cooperate, close the gulf of differences and settle disputes.” And

open markets. We believe in being good neighbours and we are a partner that pulls its weight. We want to see an open, rules-based Indo-Pacific where the rights of all states are respected. Our vision of a dynamic Indo-Pacific has ASEAN at its core. Because a strong, united and resilient ASEAN can play a critical role in fostering peace, security and economic growth. In the last 20 years, the ASEAN region’s combined GDP has more than doubled and the region is on track to become the equivalent of the fourth largest economy by 2030. Australia’s two-way trade with ASEAN is worth over $120 billion a year – bigger than our trade with the US or Japan. We want to see strong and resilient regional architecture, with ASEAN at its heart. We want architecture that’s capable of supporting deeper engagement, more cooperation, more productive relationships between nations. Cooperation and collaboration are vital in this effort. As Australia and the members of ASEAN said in the Sydney Declaration a year ago, we are partners with a vital stake in a dynamic region undergoing major changes. We commit to intensify our shared work to shape a secure and prosperous region for our people. We live in a region with tremendous promise. There are 1 million Australians living overseas – many of them young, building relationships, broadening their horizons, developing their skills. Each in their own way a representative of our country. You are part of a deep and flourishing business community here in Singapore, absolutely critical to Australia’s strong and expanding presence in the most promising part of the world. I commend your entrepreneurial spirit, and your very Australian willingness to ‘have a go.’ And again I say thank you to AustCham for your role in bringing this community together, today and every day.

Indonesia’s Minister of Defence General (Rtd) Ryamizard Ryacudu, said: “In ASEAN, we continue to seek to enlarge our similarities and commonalities and to decrease and minimise the differences.” Singapore and Australia understand that if we are to make the most of our region’s dynamism, we must do so together and in concert with other independent sovereign nations of the Indo-Pacific. We must commit to remain open to each other, with inclusive fora that protect, respect and reinforce our sovereignty and independence. Now is not the time to be complacent. I said in Jakarta in my first overseas trip as Prime Minister that, set against rapid social and economic changes, our region is experiencing sharpening strategic competition. In an era of rapid change and uncertainty, we must know who we are, what we offer and what we’re about. Retreating into protectionism is – to borrow Justice Ruth Bader Ginsburg’s famous analogy – like throwing away your umbrella in a storm because you’re not getting wet.

PRESENTING SPONSOR SUPPORTING SPONSOR

I’ve said before that our foreign policy must not be simply transactional. It’s about our character and values. Who we are in the world, and what we believe in. We believe in the rule of law; in equality of choice and opportunity. We believe in peace and liberty through the prosperity of private capital, property rights, free and

NAVIGATING A TOUGHER ENVIRONMENT The Australian election largely passed without mention of foreign or economic policy. But for the incoming government, both areas are likely to be important grounds for complex policy decisions. DEBORAH ELMS Executive Director Asia Trade Center

The fact that Australian voters returned Prime Minister Scott Morrison to power means greater continuity and fewer new faces in Cabinet. This ought to help smooth the process of transition, even if key portfolios in foreign and defense ministries may shift. The basic alignment of strategy is unlikely to be radically altered. Given a rapidly altering global and regional landscape, Australia can illafford a lengthy period of internal reflection or a slow process of turnover to new individuals. Like many middle powers, Australia has been increasingly balancing between the demands of the United States and China. Strategic imperatives and historical ties have meant a close connection to the United States, but economic interests have also driven the rising importance of China for Australia. The US is the largest investor and services partner for Australia, while China is the largest importer and export partner for Australian goods. Maintaining a balance between the two countries has never been easy, but doing so now has become nearly impossible. The fight over Huawei is symptomatic of the challenge ahead for Australia. Demands by the United States to ban the telecommunications company from key networks and contracts has resulted in a gathering chill in the relationship with China. As trade talks between the two powers have broken down, the US escalated the pressure directly on Huawei, placing the company on the so-called “entity list” of firms banned from operating in the United States or with US companies. This has put additional strain on Australia, which had already refused to use Huawei’s 5G network. The rising trade war between the US and China threatens to capture all goods traded between the two with rising tariffs. Such a situation could benefit Australian companies servicing both markets, but will need to be handled deftly to avoid antagonizing both sides. Trade tensions have threatened to spill over into other settings where Australia has been active, including the Regional Comprehensive Economic Partnership (RCEP). China has now been pushing for a rapid conclusion to the talks that have dragged on since the end of 2012. Australia’s demands for a high ambition outcome are colliding with China’s determination to get a deal done quickly. Australia is also potentially at risk from a split in the digital economy. If China and the United States cannot get along, it will be impossible to craft global rules that benefit Australian companies operating in both markets. Australia has taken a leadership role in working on the e-commerce talks at the global level through the World Trade Organization (WTO). These talks, with 76 partners, will require clever negotiating skills to achieve an outcome in the near term.

Trade and economic challenges could also be found in the region closer to home. Both the Pacific Island states and members of ASEAN are also likely to present a range of issues of interest to Australia. Slowing global growth means that local governments will fight harder over issues that could be disguised when times were good. As an example, many governments in the region are increasingly seeking revenue from any and all sources, including new types of taxes, border or customs rules, and regulatory changes that clearly help domestic firms over foreign companies. Each of these elements can put Australian companies at a disadvantage.

governments have presided over an enviable record of continuous economic growth. It will be necessary to draw upon all the skills and canny abilities of officials, business and Australians at a time of increasing global turbulence. The choice of the incumbent government suggests that voters understood the need for continuity.

In such fluid and potentially challenging environments, Australia can find benefits. The countryâ&#x20AC;&#x2122;s firms have become adept at seeking out opportunities and finding global customers. Successive

A GAME OF TRUTHS IN ASIA DAVID GREEN CEO Singapore and Head of South East Asia, India & Middle East ANZ

Don’t believe everything you read, Asia may not be slowing as quickly as first thought.

“BUSINESSES CAN'T MAKE INFORMED DECISIONS UNLESS THEY LOOK MORE CLOSELY AT WHAT’S HAPPENING IN INDIVIDUAL MARKETS.”

a whole. As a market, the Association of South East Asian Nations (ASEAN) is the fifth-largest economy and the second-largest recipient of Foreign Direct Investment (FDI) in the world. The region’s population stands at 650 million and is growing by seven million a year.

The headlines are hard to miss: Asia is slowing. Growth is drying up. Trade wars are not helping. The sky over an entire continent is on the precipice of falling.

Growth across the largest six countries in ASEAN is consistent at around 5 per cent. Australia and New Zealand would both leap at such figures. Forecasts suggest gross domestic product in the region could reach $US10 trillion by 2030.

In April the International Monetary Fund (IMF) cut its global growth forecast to 3.3 per cent for 2019, down from 3.5 per cent in January. In October it was 3.7 per cent. Asia has been the world’s growth engine for some time, now it is slowing.

FDI into the region in 2018 came in at record highs. Amid all the noise around a reversal in globalisation and inwardly focused nations, there are countries in south-east Asia taking advantage of the change.

So what is this “Asia”? Asia – and we must always stress this – is not a single economy. There is no such thing as the “Asian economy”. Rather there are many economies within Asia - wildly diverse ones at that. At ANZ we deal with a wide range of customers from diverse geographic backgrounds. We don’t need to tell our Asian-based customers to approach individual markets differently. But the message – for whatever reason - doesn’t always make it to the antipodes. Somewhere on the plane south east reality morphs into a fiction about a homogenous place that doesn’t exist. For our Australian and New Zealand customers there is a key message: don't think about Asia as one market. That means don't get caught in the headlines about China. Don’t be put off by the ‘Asian slowdown’. Don’t be scared away by the trade war. It’s tough. The sheer size of China’s economy means its performance (and outlook) will always weigh disproportionally on the region. Suddenly promising numbers from smaller players get lost in the big picture. We’re not saying the picture is all rosy. What we’re saying is businesses can't make informed decisions unless they look closely at what’s happening in individual markets. LOOK AROUND At ANZ we encourage customers to think about diversification opportunities in Asia. Finding what works for an individual business will vary depending on industry, risk appetite and preferred business models. While I emphasised at the onset it’s wrong to think of the enormously diverse Asian region as a single economy, the macro-economic data reinforces the sheer scale of the opportunity the region presents as 18

The key driver in south-east Asia is change. An increasing population is leading to urbanisation which is in turn driving consumer and domestic consumption. Consumers are changing their habits and it’s not going to stop. Those trends reflect inexorable forces. The complexities of trade policy and tariffs are not going to stop the need for these people to eat. For business – and investors – success is to be found scanning different markets for the opportunities most applicable to their own strategy. If you take the time, you’ll find the opportunities in south-east Asia are diverse. Consider these two economies and the opportunities they offer. VIETNAM The Vietnamese economy grew by 7.1 per cent in 2018. In the first quarter of 2019, GDP again expanded 6.79 per cent. It’s one of the most-interesting economies in the region – a market of 90 million people with a median population age of 30.5 years and very high level of literacy. This outstanding growth is the result of years of work by the government, investing in areas it knew it needed to drive its economy. This includes signing a number of free-trade agreements – 11 at last count. If you've been to Vietnam in the past it’s advisable to not let your thinking be shaped by what you saw 20 or even 10 years ago. Modern Vietnam is focused on developing infrastructure, standardising its border activity and creating a framework for attracting foreign-direct investment. And that's really driven some massive changes.

No longer simply the world’s textile factory, the number-one export out of Vietnam is now mobile phones. Vietnam manufactures one in 10 of the mobile phones produced in the world. It represents 21 per cent of the country’s total exports. In recent years South Korean electronics giant Samsung has invested tens of billions of US dollars into Vietnam, with plans for more. In other industries, the Mekong Delta is among the most-productive regions in agriculture and aquaculture on the continent. The country is also blessed with a maturing consumer services sector, sound manufacturing fundamentals and numerous infrastructure opportunities. The key driver of all this change in Vietnam is a well-educated young workforce supported by robust infrastructure that has created an ecosystem of opportunities for business to tap into.

Don’t make a judgement on Asia based on just the big players – take the time to look deeper into what is on offer. Across ASEAN, increasing urbanisation, growing income and evolving consumer demands are supporting changing expectations around infrastructure, energy and education, leading to modern economies which are ripe with opportunity. While there are as always plenty of reasons to exercise caution in certain markets and industries, there’s also a lot of opportunity being created as trade and investment flows adapt to a changing global landscape and as the underlying engines of growth in some of these developing nations accelerate. Rising trade tensions are unwelcome but businesses will respond and adapt. Supply chains will shift and this will create opportunities for those who are able to take advantage of them. That’s where the diversity of the “Asian economy” becomes an advantage.

INDIA India is getting easier to navigate and harder to ignore. An economy of 1.3 billion people with a GDP growing at 7 per cent is not to be dismissed. Advances in the use of technology in India are happening at a scale unseen anywhere else and it is creating a vast array of business opportunities. India is no longer held back by legacy or structural decisions because of these new technologies and the need to think differently. It has scale. It has demand. It has increasingly deep-pocketed consumers. There’s no doubt in the past it has been a challenging market. Many Australian and New Zealand businesses have struggled in India during past years and some continue to. But the focus of the Modi government is making it easier to do business in India and we’re seeing progress. In November, India was named 77th in the world for ease of doing business – up 53 notches in just two years.

ANZ is AustCham Corporate Patron Member ANZ celebrates 45 years in Singapore ANZ established a presence in Singapore in 1974, a strategically important step in ANZ’s history and role as a trade bank. Over that time, the bank has built a strong presence, connecting businesses to trade and capital flows across the Asia Pacific and Australia and New Zealand. For ANZ today, Singapore is integral to a focus on helping Australian and New Zealand businesses expand into ASEAN, while supporting corporate and institutional customers who use Singapore as a hub for international business. ANZ Singapore is one of two key regional business hubs for ANZ, offering a full range of products for corporate and institutional customers.

Australia and New Zealand remain underweight in India. For such a large economy it’s been comparatively overlooked. The reasons are complex; an obvious one is a lack of FTA deals (which both Australia and New Zealand have with China, for instance). China is also a little bit closer for a direct flight. With the recent changes some of the complexities of India have dissipated. The country has effectively taken away its borders at statelevel yet and introduced a goods-and-services tax. It has harmonised its sales taxes within the regions, something businesses used to find very hard to understand. So India is getting easier. The market is growing. And of course, like Vietnam, India is not really a topic of the trade tensions between China and the US. In fact, anecdotally it's one of the markets businesses are looking to shift their supply chain to in the wake of the tariffs. ALTERNATIVES Inevitably there will be businesses whose supply chains through Asia face difficulties related to the trade war. The good news is there are natural alternatives in the region if you know where to look. Vietnam and India are two of the more well-known locations in a broader south-east Asian region which make suitable alternatives.

STRENGTHENING INTERNATIONAL PARTNERSHIPS WITH A GUEST PROFESSORSHIP JAMES COOK UNIVERSITY SINGAPORE

Professor Chris Rudd OBE, Deputy Vice Chancellor and Head of Campus, Singapore at James Cook University, has been inducted as a guest professor at the Chinese Academy of Sciences (CAS). In the academic world, the ability to share opinions and ideas is essential to widening our knowledge and grow innovation. International collaborations help facilitate this, and such partnerships contribute a great deal to academic and scientific progress. Therefore, in a bid to expand and deepen international ties, one of China’s leading providers of engineering research – the Ningbo Institute of Materials Technology and Engineering, under CAS – reached out to experts for advice and collaboration. Given Professor Rudd’s background in Advanced Materials research, and his experience in contributing to the introduction of new materials and processes in various fields – including the automotive, aerospace, and medical devices industries – he was a natural choice to share his knowledge and provide guidance on manufacturing composite materials. This led to his appointment of guest professorship at the institute on 21 May 2019. This opportunity opens up greater collaboration possibilities between James Cook University (JCU) and the Ningbo Institute of Materials Technology and Engineering, CAS, while fostering stronger relations between the two organisations.\

In fact, one of the aims of the guest professorship is to stimulate research collaboration between JCU and CAS that focuses on composite materials that can reduce weight in transportation systems – such as aircrafts, high-speed trains, and automobiles.

JCU is AustCham Corporate Patron Member

“The Chinese Academy of Sciences is one of the world's most prestigious learned societies, as well as the major research provider in China,” says Professor Rudd. “To be honoured in this way is a great privilege for me personally, but I also believe that it will benefit JCU's reputation in the region and enhance our partnership development opportunities.” Meanwhile, James Cook University continues striving to conduct and deliver meaningful research and discoveries, so that we can make a difference to people, societies, the built environment, and the world around us.

EVENT RECAP

AustCham Event Recap

AUSTRALIAN POST-ELECTION PANEL DISCUSSION:

TAX PLANNING UNDER A CONTINUING COALITION GOVERNMENT

TRISTAN PERRY Head of Tax - Australia Select Investors

I was both shocked and relieved at the same time when the results came through on election night that Scott Morrison and his team are going to stay in Government for another three years (and, for the sake of continuity, it is to be hoped that Scott Morrison will retain his position as Prime Minster throughout the term). I must confess to an occupational bias here – a change of Government would have led to a material change in tax policy, and the need to immediately overhaul many client’s carefully structured tax planning strategies. At least we have a degree of comfort now that radical change won’t be needed in the short term. So, with a platform of stability over the next three years, we can take time for reflection. It is always important to review your Australian tax planning strategies for repatriation, investment, capital gains and retirement to name a few and make the necessary adjustments to ensure that we all leave Singapore in a better position than when we arrived. We can do so in a measured and proactive way now, rather than out of sheer reaction. LATEST BUDGET MEASURES The last Budget was handed down on 2nd April 2019 by the Federal Treasurer Josh Frydenberg. It was branded as an election pitch, without many revenue measures, but plenty of spending. The big headline for the Government was delivering the first budget surplus ($7.1b for 2019-20), with an accumulated surplus forecasted of $45b for 2020-21, 2021-22 and 2022-23 combined - all of which has been earmarked for repayment of the national debt by 2030. This is no bad thing of course, especially as the interest bill on our national debt in the previous year was a whopping $18b. Below is a summary of the key Budget measures announced for both individuals and business. Individuals Increase in Lower-and Middle-Income Tax Offset (LMITO) :- This tax offset was announced in the prior year’s budget to start from 1 July 2018 and run through to 30 June 2022. The LMITO has been increased from a maximum amount of $530 to $1,080 for taxable incomes from $48,000 to $90,000, phasing out to $125,999. The previously announced increase in the 32.5% tax bracket from $87,000 to $90,000 remains in force from 1 July 2019. Further tax benefits from 1 July 2022 have been slightly improved including the increase in the Low-Income Tax Offset (LITO) from 1 July 2022 from $445 to $700 for taxable incomes of $45,000 or less, phasing out to $66,667. And the 19% tax bracket being 22

extended through to $45,000 (from $37,000). This is all building to the biggest of the changes to the tax rates proposed from 1 July 2024 with the removal of the 37% tax bracket all together and lowering the 32.5% bracket to 30% so that this new bracket extends all the way through to $200,000. The headline difference in tax payable by an Australian resident with a taxable income of $200,000 from 2018 to 2025 is a tax reduction of $11,504. The Government has predicted that this measure will then result in 94% of all Australians facing a marginal tax rate of 30% or less by 2024/2025. Rate

2019/20 to 2021/22

2022/23 to 2023/24

2024/25 onwards

$AUD

0 - 18,200

19%

18,201 - 37,000

18,201 - 45,000

30%

N/A

45,001 - 200,000

32.5%

37,001 – 90,000

45,001 – 120,000

N/A

37%

90,001 – 180,000

120,001 – 180,000

N/A

45%

180,000 +

200,001 +

For an Expatriate? These changes aren’t really something too major to get excited about. However, when you eventually return to Australia, hopefully these lower tax brackets will still be in operation to improve your after-tax position. Furthermore, any changes to the 32.5% bracket extend to non-residents as this is the first rate of taxation for an expatriate. Proposed Principal Place of Residence Changes for Foreign Tax Residents: This measure which removed the ability for foreign tax residents to claim the Principal Place of Residence exemption, was originally proposed in the 2017-18 Budget (2 years ago). It had been stuck in the Senate since that time but lapsed with the calling of the Federal Election on the 11th April 2019. This would have been a major change in the Capital Gains Tax strategy for expatriates but thankfully it is highly likely that this is the last that we will hear of this, for now at least. Superannuation Changes from 1st July 2020: The “Work Test” is a gainful employment test which one has to pass in order to make a voluntary Superannuation contributions between the age

of 65 to 74 (another test is having a Total Superannuation Balance below $1.6m). These changes increase the starting age to 67 meaning that retirees can continue to contribute to their Superannuation even beyond “retirement” providing that they are younger than 67. Current unchanged contribution limits are $25,000 per year concessional and $100,000 Non-Concessional. If a taxpayer is under 67, they may also like to consider using the 3 year bring forward rule at the beginning of a new financial year, which allows you to make 3 years of the non-concessional contributions of $100,000 at once, in conjunction with a $100,000 contribution in the prior year. This strategy allows a contribution to Superannuation of up to $400,000 (over two financial years), subject to the member’s total Superannuation balance being under $1.4m (tested at 30 June each financial year). Furthermore, from 1 July 2020, the age limit for a Superannuation Spouse Contribution tax offset has been increased from 69 to 74, which allows a tax offset of up to $540 for a superannuation contribution of up to $3000 provided that the spouse’s taxable income is less than $37,000. The spouse may also have to meet the work test, so stay tuned for further updates on this front. For expatriates: - You can make Superannuation contributions from anywhere in the world, and anyone with an Australian Tax File Number can join an Australian Superannuation Fund. The contribution and access rules should however be considered as you cannot generally access Superannuation prior to preservation age, (unless you are terminally ill), which for most individuals is 60, and retired OR 65. This can be restrictive together with an ongoing tax on earnings in the fund at 15% up until pension phase. There could, however, be some merit to making a deductible superannuation contribution if you are positively geared on your Australian properties as this provides a tax deduction against your Australian tax bill.

once something major in their life changes, so it is important to consider this and work out what can be done ahead of time so you are not rushed in the end. The objective of repatriation planning is to restructure your finances so as to generate the best net income after the lowest effective rate of taxation. It presents an opportunity to pass assets into tax efficient structures, manage debt, build for retirement and plan for tax-efficient income generation. I am a big fan of diversification which acts as both minimising legislation risk and broadening your investment returns. Australian discretionary trusts are now still very much on the table (now that Labor has not been elected) and provide for efficient distribution of both capital gains and income to family members, who may have lower taxable incomes. There are also further restructuring opportunities to setup whilst you are offshore which extend to provide asset succession and further temporary or permanent tax deferral in the future once you are an Australia. Other repatriation considerations include land tax, capital gains tax strategy (see below) and use of Superannuation together with cash flow management once you are back down under. Capital Gains Tax Strategy: This involves ensuring that you understand the capital gains tax exposure on each of your Australian (and International) assets including understanding the Principal Place of Residence exemption on your home in Australia, and what period this applies to. It also involves managing non-deductible debt and retaining negative gearing when back in Australia. Furthermore, the different tax positions of when to sell a property and managing carried forward tax losses from renting need to be considered.

Business Taxation For expatriates? The below is relevant to those expatriates who may still have interests in Australian corporations which continue to trade whilst they are posted to Singapore.

Retirement Strategy: This involves the use of Superannuation, Property, entities (such as family trusts or companies) and alike to generate the most efficient income stream whilst a tax resident, together with maintaining an income stream until your passing, and asset succession planning. It is highly recommended that you seek the professional advice of a qualified Australian Tax Accountant and Financial Planner to assist with your repatriation, capital gains and retirement planning strategies in the future.

Small Business Instant Asset Write Off: This concession has been extended and improved from the previous year, allowing businesses with turnovers of $50m or less to write off an asset purchase of $30,000 or less, on a per asset basis – from 7:30pm on 2nd April 2019 until 30th June 2020.

The levels and bases of taxation and reliefs from taxation can change at any time and are dependent on individual circumstances. The value of an investment with St. James’s Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than you invested.

Division 7A: Loans from Companies to Shareholders and their associates: The Government has proposed a series of measures to tighten these anti-avoidance rules, thus placing additional pressure onto corporates who are managing these loans. However, this has now been pushed back to 1 July 2020.

Australian Post-Election Panel Discussion

Hybrid Mismatch Rules: Sounds complicated? That’s because it is! The Government is tightening the rules in relation to when a business can take advantage of different tax treatments for cross border businesses between two countries which results in double non-taxation. This further compliment the recent changes to tighten other cross border taxation like Transfer Pricing, Multi-National Antiavoidance and Diverted Profits Tax. Further funding of $1b over 4 years has also been committed to extend and expand the operation of the Tax Avoidance Taskforce focused on largely corporates, multinationals and high wealth individuals. Forward Tax Planning Repatriation: For some, this event is set in stone and they can work towards a date. However, for others, this event only happens quickly

Pamela Qiu, Jonathan Pearlman and Tristan Perry

This panel discussion was held on Tuesday 21 May 2019

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UPCOMING EVENTS

UPCOMING EVENTS To find out more about our events, visit our website at WWW.AUSTCHAM.ORG.SG

JUNE Networking Event

Thursday 20 June 2019 Inter-Chamber ICT Networking Night

Join us for a special evening as we bring together ICT professionals from around Singapore in a multi-Chamber networking event. Meet with members from AmCham, BritCham, and FrenchCham to expand your professional network and gain further industry insights. EVENT PARTNERS

Signature Event

Monday 24 June 2019 Annual General Meeting

The Annual General Meeting presents an excellent opportunity for the Chamber to update you on our progress and achievements for the 2018/2019 year and introduce you to our plans for 2019/2020.

JULY New Members

Friday 12 July 2019

Networking Event

Tuesday 23 July 2019

This July AustCham partners with BritCham to host a special networking evening.

Inter-Chamber Networking

EVENT PARTNER

Meet the Board

with BritCham

Meet the Board is an opportunity to welcome you to the Chamber where you will: Learn more about what AustCham can do for your business, network with other new members to promote yourself and your company, directly engage with board members. AustChamâ&#x20AC;&#x2122;s board consists of 12 members that are leaders in their fields from various industries who have lived and worked in Asia for a number of years.

OUT & ABOUT

APRIL 2019

AUSTRALIAN BUDGET UPDATE BREAKFAST Wednesday 3 April 2019

The morning after the 2019 Budget was handed down, Tristan Perry Head of Tax Australia for Select Investors covered what was announced and presented a breakdown on how the Budget can impact you and your business. Special thanks to our event sponsor Select Investors - A Division of St. James's Place (Singapore) Private Ltd.

EVENT SPONSOR

Tristan Perry

Derek MacKenzie, Jamie Burgmann, Kate Baldock and Alexandra Shilling

Angela Yung, Stevie Walsh and Linley Lord

Clare MacKenzie, Karen Green, Ranelle Cliff and Grace Moshi

Marc Allen, Anna Hughes and Natasha Hall

Suzanne Ogge

OUT & ABOUT

MARCH 2019

BUSINESS CONNECTS MARCH

AustCham members and guests joined us for our second networking event for the year. It was held at The Masons Table. AustCham members and guests enjoyed an evening of networking, free flow beer, wine and canapes.

Wednesday 7 March 2019

Cameron Haines, Ryan Finkelstein, Tim Ong and Brandon Wong

Simon Hilton, Lucy Bates and Simon Bates

Ian Cummin, Susan Cummin, Leonie Muldoon and Scott Speedie

Ben Vella, Tim Ong and Dion Thorpe

Alan Jones, Craig Rawlings and Andrew Unterweger

Tristan Perry, Philip Forrest, Veronica Rodriguez and Dion Thorpe

OUT & ABOUT

APRIL 2019

Innovation Series The Future of Food Wednesday 24 April 2019

As part of our Innovation Series with CSIRO, our expert panellists addressed the emerging issues in global food security and innovations that will transform the future of food. Our speakers include those with experience in food commercialisation to waste management and from organisations such as CSIRO, GA Circular, Meat & Livestock Australia and MEOD Pte Ltd. The Q&A session was moderated by Rob Hulme Co-Founder & Head of Asia Beanstalk AgTech. Thanks to event sponsor CSIRO.

EVENT SPONSOR

Duncan Ferguson

Rob Hulme

Rob Hulme, Duncan Ferguson, Tim Ryan, Jeremy Chua and Ashwin Subramaniam

Adam Lyle, Rob Hulme, Duncan Ferguson, Tim Ryan, Jeremy Chua and Ashwin Subramaniam

OUT & ABOUT

MAY 2019

AUSTRALIAN POST-ELECTION PANEL Tuesday 21 May 2019

AustCham members and guests joined us for breakfast to hear from our panellists Jonathan Pearlman Editor of Australian Foreign Affairs / Australia Correspondent from the Straits Times and Tristan Perry Head of Tax from Australia for Select Investors – A Division of St James’s Place Tristan Perry as they discuss the effects and what to expect from the new government. Special thanks to event sponsor Australia for Select Investors – A Division of St James’s Place.

EVENT SPONSOR

Richard Hield, Kate Baldock, HE Bruce Gosper, Serena Wee and Shannon Foley

Scott Speedie

Joseph Kwok,Leonie Muldoon and HE Bruce Gosper

Pamela Qiu

Jamie Burgmann, Boon Tan, Belinda Fraser and Tim Raes

Pamela Qiu, Jonathan Pearlman and Tristan Perry

THANK YOU

THANK YOU TO OUR CORPORATE PATRONS AND GOLD CORPORATE MEMBERS

Corporate Patron Members

Gold Corporate Members

NEW MEMBERS

NEW MEMBERS Welcome Gold Corporate Members

Meat and Livestock Australia www.mla.com.au

Treasury Wine Estate Asia (SEA) Pte Ltd www.tweglobal.com

Martina Tan Regional Marketing Executive

Elise Greene Senior Marketing Manager

Marcus Ingleby Head of Marketing

Michael Patching Livestock Services Manager, Asia Pacific

Pieta Jordan Senior Marketing Manager

Bryan Lau Business Development Manager

Sam Stephens Penfolds Winemaking Ambassador

Corporate Plus Members

Ascender HCM

www.ascenderhcm.com Krishna Ramalingam Head of Account Management, Local Enterprise

NEXTDC Ptd Ltd www.nextdc.com Matt Howard Chief Operating Officer Liu Luk Chi (David) Chairman of Asia

TO LEARN MORE ABOUT OUR AUSTCHAM MEMBERSHIP ACCESSASIA | WWW.AUSTCHAM.ORG.SG Visit austcham.org.sg or contact us members@austcham.org.sg

NEW MEMBERS

Corporate Enterprise 2CV Pte Ltd James Redden Managing Director Asia Pacific

DeltaPearl Partners Bradley Rogers Director

Gemstar Technologies Gemma Manning Managing Director

Hebeloft Helen Wong Managing Director

Knight Frank Asia Pacific Pte Ltd

Tim Armstrong Head of Occupier Business Development

KordaMentha

Nagashima Ohno & Tsunematsu Nicholas Josey Foreign Attorney

Precious Treasures Jeanne Ng Director

Red Door Group Pte Ltd

Danielle Rifkin Assistant General Manager

Sarah Whyte Consulting

Sarah Whyte Consultant, facilitator, speaker & ICF coach

Shoretech Pte Ltd G. Murugajan COO

UEX Global

Marion Sohet Sales & Marketing Manager

Hamish Bull Director

Misobase Pte Ltd

Matt Holyoake Founder & CEO

Weber Shandwick

Darren John Burns Vice Chair, Asia Pacific

Associate Emma Coath Director Rocket Seeder

Individual Grant Dooley COO ARA Asset Management

Alistair Douglas CEO Eachmile Technologies

Sean Lockwood Country Manager City Facilities Management SGP

Anthony Brown Head of Sales and Business Development Exyte

TRAVEL QANTAS Complimentary business class check-in for you at the Qantas lounge in Singapore

MEMBERSHIP CARD OFFERS Present your AustCham membership card and enjoy these benefits.

BUSINESS SERVICES 2STALLIONS DIGITAL MARKETING AGENCY 20% discount on SEO service

LEVEL3 Complimentary month of ‘Community Membership’

AIMS IMMIGRATION SPECIALIST 15% discount on professional fee at AIMS Immigration Specialist

SERVCORP Enjoy ‘The Virtual Office’ package complimentary for one month

ENGN 15-20% photography discounts off headshots

WORLDFIRST Enjoy %50 off first international transfer

LAW IN ORDER AustCham members enjoy 15% off a range of business administrative services

OFX Preferential exchange rates on inter-account FX conversions or on overseas money transfers.

EDUCATION & TRAINING COALFACE DIALOGUE Enjoy up to 30% off selected public programs anywhere in SEA

FINANCIAL SERVICES PAY2HOME Enjoy money transfers to Australia for a flat fee of $15 (save 25%)

QBE SINGAPORE 20% discount on personal lines including Home, Motor and Travel coverage

HEALTH SERVICES ALL IN THE FAMILY COUNSELLING Enjoy special rates for counselling sessions

GLOBALIS INTERNATIONAL HEALTH INSURANCE Receive discounted rates on their international health insurance

LIFESTYLE & ENTERTAINMENT BAND ON THE RUN ENTERTAINMENT 10% off General Access Tickets

DAMAI SPA Enjoy 20-30% off A La Carte treatments

BOUNCE SINGAPORE 10% off General Access Tickets

MISOBASE AustCham members 10% off all experiences.

CHI, THE SPA Enjoy 10% off discount

TRANSPORT & RELOCATION SERVICES ALLIED PICKFORDS Offering AustCham members a special insurance premium of 3%

HERTZ Enjoy 15% off on Affordable Rates for car rentals

HOTELS COMO THE TREASURY PERTH Enjoy Friday and Saturday night stay at 10% off the public rate. NOVOTEL SINGAPORE CLARKE QUAY Enjoy 10% off from Best Available Room PARK REGIS, SINGAPORE Complimentary breakfast when you book Bed & Breakfast Package RIA BINTAN AustCham members enjoy $20 off Newbie Golf Experience & $200 off Membership.

THE CANOPI AustCham members enjoy 10% off Best Available Room Rates at The Canopi and 10% off all activities at Chill Cove @ Treasure Bay Bintan. THE FULLERTON HOTELS SINGAPORE Enjoy an exclusive 20% off best available rates the Fullerton Family Package. VILLA FINDER With an average stay that costs $3000 in luxurious villas, Villa Finder is now offering AustCham members 5% off their villa booking!

RESTAURANTS ARTISAN BOULANGERIE CO. 17.5% off total bill

NAMI Enjoy 15% off total bill for a la carte items

BEACH ROAD KITCHEN 1 person dines free for every 3 paying adults for Sunday Brunch

ORIGIN GRILL & BAR 15% off total total bill

CAFE MOSAIC 20% discount off total bill COOL CATS, THE NCO CLUB 30% off total bill COURT MARTIAL BAR 30% off total bill FISH POOL, THE NCO CLUB 25% off total bill GATTOPARDO 15% discount off total bill JAXS BISTRO 10% off total bill JOJI BAR 10% off total bill at Joji Bar, Carlton Hotel Singapore

SHANG PALACE 15% off total bill SHOPHOUSE BY SHANGRI-LA 15% off total bill THE LINE 15% off total bill THE LOBBY LOUNGE 15% off total bill THE ROSE VERANDA 15% off total bill WAH LOK CANTONESE RESTAURANT 10% off total total bill WATERFALL RISTORANTE ITALIANO 15% off total bill

MEATSMITH Special discounts available

RETAIL EASTERN CARPETS Receive 10% discount on all carpet cleaning services EUROPEAN BEDDING Receive 5% discount on top of existing promotions INDIGO WINE CO $30 off first purchase of discounted Australian wine packs NATURAL SPRINGS AUSTRALIA Receive one free 5-gallon bottle with every five bottles purchased SHIVA DESIGNS 15% discount on purchases over $99

VISIT WWW.AUSTCHAM.ORG.SG FOR FULL DETAILS & CONDITIONS

UOMO GROUP Exclusive discounts at UOMO Group, Brioni and Stefano Ricci WINE EXCHANGE ASIA $69 per bottle for cases of six BillecartSalmon NV Champagne TREASURY WINE ESTATES Exclusive access to premium Australian wines including Penfolds and Wolf Blass FARMER'S MARKET AustCham members enjoy $30 off your first order

NEWS FLASH JAMES COOK UNIVERSITY, SINGAPORE, APRIL 2019 GRADUATION

Congratulations to all students who graduated from James Cook University on 13 April 2019! This marked the first graduation ceremony of 2019 in Singapore, and a total of 285 awards were conferred at the event. Best of luck to all graduands for the future ahead. Exciting opportunities await! James Cook University in Singapore aims to foster research collaboration throughout our public lectures and panel discussions, where academics share and exchange knowledge to further our learning. The Regional Built Environment Forum, which will be hosted by the Australian High Commission and take place on 3-4 June 2019, also allows James Cook University to join other experts in exploring how we can confront urbanisation challenges.

JUN / JUL 2019 AccessAsia Magazine is published bi-monthly by AustCham Singapore

EDITORIAL AND NEWSFLASH ANNOUNCEMENTS To submit articles or announcements for consideration for Access Asia, email info@austcham.org.sg

Editorial Team Kate Baldock, Executive Director Rica Ang, Marketing Executive

ADVERTISING To learn more about advertising in Access Asia Magazine, contact Rica Ang at rica.ang@austcham.org.sg

Design Rica Ang, Marketing Executive

AustCham Singapore 25 Napier Road (Level 3) Singapore 258507

@AustCham-Singapore

@AustChamSingapore

@AustChamSG

READ THE DIGITAL COPY AT AUSTCHAM.ORG.SG

Experience the Qantas difference Enjoy Australian service and hospitality, before you even arrive Visit qantas.com

AUSSIE - RULES Skills for life

Ingenuity

You ignite your childâ&#x20AC;&#x2122;s ingenuity, we fuel the ďŹ re. Your child is gifted with natural creativity. We consider it our job to nurture their talent and ingenuity, without conventional constraints, to foster their innate ability to inquire and make links across our entire curriculum. Speak to our friendly Admissions Team about becoming part of our community.

Globally focus ed, distinctly Australian

www.ais.com.sg ... +65 6653 7906

The Australian International School Pte Ltd is part of the global Cognita family of schools and is registered by the Committee for Private Education (CPE), part of SkillsFuture Singapore (SSG). CPE Registration Number 199204405H. Period of Registration 6 July 2015 to 5 July 2019.