`Hard sell' to pay off, says Egan - Brief Article

Business Asia, Oct 25, 1999 by Cameron Cooper

A new, more aggressive approach by New South Wales exporters will enable them to exploit Asia's looming economic turnaround, according to State Treasurer Michael Egan.

He said diversification into new markets -- and an imminent improvement of exports to Asia -- meant Australian businesses were well placed as they entered the new millennium.

"Business now is getting out and seeking markets whereas once they produced their product, put it on the shelf and said, `Come and get it'. There's a new climate in Australian business. It's much more outward looking," Egan said. "And as Asia comes back on stream that's going to be very good news for us."

Information technology, finance and professional services are areas of likely growth for NSW exporters, but Egan is reluctant to pinpoint market "drivers" -- noting that economic growth should occur across all sectors.

Central to Sydney's business future will be its planned emergence as a true regional finance capital that can stand alongside such cities as New York, London and Hong Kong.

Federal Finance Minister Joe Hockey and NSW politicians, including Egan and Premier Bob Carr, have been selling Sydney's finance credentials to New York and the United Kingdom recently.

Egan believes there has been a shift in Americans' perception of Australia as a finance centre -- adding that fours years ago Americans "knew nothing", the UK had out of date ideas about Australia and Europeans were slightly better informed.

He claims the US now has a better understanding of Australia and its place in the Asia-Pacific region courtesy of the rising number of American business people working Down Under.

Egan said next year's Sydney Olympic Games would add to such momentum.

The real impact of the Games, according to Egan, will be its "repositioning" of Australia as a country that is more than just "a farm or a quarry".

"The Olympics will alert people to a very modern economy," he said.

Recent visits to Australia by presidents Jiang Zemin and Kim Dae Jung would further help the trade relationship with major trade partners China and South Korea, respectively, according to Egan.

He scoffed at the "Jeremiahs" who had been predicting gloom for Australia's economy because of Asia's economic crisis and said the crisis had underlined NSW and Australia's economic strength.

"Once they (Asian nations) are on the road to recovery, I think Australia is going to be looking very strong," Egan said.