The New Zealand Initiative Urges Swift Action On Bold FDI Reforms

Wellington (Monday, 14 October 2024) – The New Zealand Initiative strongly welcomes the Government's plans to liberalise New Zealand's foreign direct investment (FDI) regime, calling for swift implementation of these game-changing reforms.

The Initiative's Executive Director, Dr Oliver Hartwich, praised the proposed changes:

"For too long, New Zealand has been sitting on the sidelines when it comes to attracting foreign investment. These reforms will put us back in the game, bringing in much-needed capital, technology and expertise. We urge the Government to implement these changes as soon as possible, well before the end of their 2025 deadline."

The reforms, announced by Associate Finance Minister David Seymour, include reversing the presumption that investing in New Zealand is a privilege.

Dr Hartwich highlighted the importance of learning from successful small economies:

"New Zealand should look to countries like Ireland and Singapore, which have thrived by attracting foreign investment. Our recent business delegation to Ireland demonstrated the transformative power of smart FDI policies."

The Initiative also applauded NZ First leader and Foreign Minister Winston Peters for his positive stance on attracting international capital and investment to New Zealand.

"It's encouraging to see broad political support for improving New Zealand's investment climate," Dr Hartwich said. "Minister Peters' recognition of the importance of foreign capital for New Zealand's development is commendable."

The Initiative emphasised the potential economic benefits of the reforms, including increased productivity and higher wages.

While welcoming the reforms, The New Zealand Initiative stressed the importance of clear communication about the benefits of FDI and effective implementation to ensure success.

"These reforms represent a significant opportunity for New Zealand to boost its economic growth and prosperity. We look forward to seeing the positive impact they will have on our country's future," Dr Hartwich concluded.

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