Business & Finance

Vaile Welcomes Investment by AMP in Asia

May 16th, 2001

Trade Minister Mark Vaile today welcomed the announcement of AMP's entry into Asian markets with the establishment of businesses in Japan and India.

Mr Vaile said AMP would invest about $30 million, growing to around $200 million in the next five years, to establish itself in the Japanese market - one of the largest foreign direct investments in the Japanese market ever made by an Australian company.

Mr Vaile also welcomed AMP's announcement of the formation of a joint venture with The Sanmar Group, to be known as AMP Sanmar Assurance Company Limited, as an important development in Australia's rapidly expanding commercial relationship with India.

"The AMP investment in Japan demonstrates how Australian companies at the leading edge of their industries can take advantage of the opportunities presented by the changes occurring in Japan," Mr Vaile said.

AMP intends to establish itself in the financial services industry with the help of a local partner, NEC - one of Japan’s largest and most respected technology companies.

"I hope to meet soon with my Japanese counterpart, Mr Hiranuma, the Minister for Economy, Trade and Industry, and other relevant Ministers to pursue closer economic ties, as recommended in the report and the Conference. I will raise an important recommendation to examine a Trade and Investment Facilitation Agreement between both countries."

Mr Vaile said AMP's acquisition of a 26 per cent stake in a joint venture with the Sanmar Group establishes an important beach-head for the company in the rapidly expanding Indian insurance sector. It also positions AMP to take advantage of further opportunities that may arise as a result of India's economic reform process.

"The Australian Government has worked hard to convince the Indian Government of the benefits that will flow to India as a result of allowing increased levels of foreign investment in the Indian economy," Mr Vaile said.

He continued, "The Government will continue to push for further liberalisation of India's investment regulations, as well as improved market access conditions for Australian exports into an increasingly important market for Australia."