SECOND INVESTMENT WAVE
Australia and Japan share an enduring history of business
collaboration that has created significant value for both
economies. From its need for secure energy, minerals and food
supply, Japan became Australia's leading export destination in
1966-67 and remained so until 2009-10. Today, Japan is
Australia's second largest foreign direct investor and trading
partner.
Japanese investment into Australia commenced in the 1960s and
was primarily achieved through minority interests in primary
production joint ventures. As the relationship matured, the last
decade has seen a distinct 'second wave' of direct
investment in the Australian domestic market. These recent 100 per
cent acquisitions have targeted revenue and profit growth as
Japanese investors seek a natural hedge to Japan's demographic
challenges of an ageing and declining population.
