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Australia’s aspirations to become a financial capital of the Asia region are naive, according to the managing director of Standard & Poor’s, John Bailey.
Speaking in a panel discussion at the Financial Services Institute of Australasia’s Asia financial services summit in Melbourne, Bailey said Australia would not be able to become a financial capital of the region given the complex and multi-dimensional nature of Asia.
“For us to think that we can become financial capital is naive. We can be very competitive, we see ourselves more of engaging with the area, but it’s an alliance,” he said.
Australia needs to be consistent with its regulation and its taxation if it wants to be competitive within Asia, as well as flexible, Bailey said.
He drew attention to the resources tax as an example of tax inconsistency in Australia.
“We need to be consistent, and having worked with Asia, in Singapore and Hong Kong, the regulators are very consistent and have momentum,” Bailey said.
Bailey labelled Australia’s tendency to have “a report [such as the Wallace Report] to government and then going to sleep for a couple of years, and [then] having another report” as losing momentum.
“That’s important, it’s a little bit fuzzy, but it’s one of the most important things.”
