By Jason Hayes, Partner, PwC and Sung Lee, Director, Asia Practice, PwC

Decades of surging Asian investment in Australia have left the nation with an enviable pool of large conglomerates from the region, particularly from Japan, China, and Singapore, but also South Korea, India and beyond. 

The potential benefits of collaborating with these companies are huge - from sourcing investment capital and technology transfer to solving problems and accessing bigger markets - but it is just not on the radar for many Australian firms. 

There are now 136 large Asian companies with annual revenue of more than $500 million operating in Australia from across the region, according to PwC research. 

These range from minerals giants to trading companies to leading names in retail, technology and the food and beverage sector. 

Asian companies operating in Australia bring a range of economic, social, and cultural benefits, contributing to the overall prosperity and development of Australia. 

Along with the scale of investment these companies can make, they bring innovative technology and skills and knowledge to Australia.  

Australian businesses are missing a huge opportunity for collaboration

Japanese and Korean companies are doing collaborations in the mining industry in areas including electrification of vehicle fleets and on smart mining technology. 

For Australian consumers, these Asian players bring new products and price competition. And for Australian companies, these Asian companies can offer an export pipeline. 

A major Japanese company’s joint venture with a steel company has provided the Australian steelmaker with an export pipeline into Asia and strengthened and diversified its market presence. 

And last, but not least, some of these Asian companies are collaborating with Australian companies to solve some of the problems in here at home, for instance in addressing a major housing shortage problem in Australia.  

Several big-name Asian players in the property development have joint venture projects in the Build-to-Rent sector in Australia.  

A large Australian home builder actively promotes the fact it is owned by a multi- billion parent company from Japan. 

While there are many success stories of collaboration between companies in Australia and these Asian players there is much more that could be done. (See our report Surfing Synergies: The Perfect Ride Ahead for Japanese Investment in Australia, for more).

Cultural differences and language barriers can be obstacles to this sort of cooperation. And many Australian companies have arguably slept on this opportunity and do not currently have the knowledge, the contacts, or the bandwidth to pursue it.

A roadmap for future cooperation with Asian businesses

Asian and Australian business networks do not always overlap, even within the one country. And it is not always easy for Australian business leaders to quickly access key decision makers in Asian companies, including subsidiaries in Australia.  

But with some preparation, patience, and the right people, we argue that this can be an opportunity that any significant company can take advantage of. 

Start by putting together a list of Asian companies in Australia that are in your field and find some ways to connect with them via social channels, webinars, and virtual trade shows. Expand your network and connect on LinkedIn with peers within these organisations. 

It is worth doing some internal relationship mapping, as your own people might already have access to them. Too often Australian companies neglect fostering and deploying in-house talent with Asia-related skills and experience when doing business with and in the region.  

Then back it up with face-to-face networking at industry conferences and events. There are a wide range of these that occur throughout the year that do involve Asian firms in Australia. 

There are also many industry associations that include Asian companies as members. These range from the high-level bilateral committees or councils to less formal and structured organisations devoted to sectors or small and medium sized businesses. 

Using existing multicultural skills to make the first connections

In the medium term, companies can build their Asia readiness by improving cultural and language skills within the company and developing multilingual and multicultural employees with the required skills. 

And do not ignore government as an enabler. Austrade and other government agencies offer programs and initiatives to foster international business relations including trade missions and inbound delegations. 

With these runs on the board, it is useful to develop a clear idea of your value proposition. Whether it is local market knowledge, specialised skills, high quality, or innovative products, make sure what your business can offer to Asian companies as a potential partner is compelling.  

This puts you in an advantageous position to take advantage of these opportunities. This might be starting a strategic alliance or a joint venture. It might be securing investment to expand in Australia or beyond. 

Or it might be as simple as becoming a supplier to a big Asian player with markets here and abroad. 

As the Chinese proverb says, a journey of a thousand miles begins with a single step. Getting started on the path to greater engagement with Asian companies with these practical tips could put you on a path to greater success. 

Jason Hayes is PwC partner and Asia Practice Leader and Sung Lee is Director of PwC Asia Practice.

This content is for general information purposes only and should not be used as a substitute for consultation with professional advisors. 

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