Macquarie chief Shemara Wikramanayake backs Josh Frydenberg’s investment call

Macquarie’s CEO has supported Josh Frydenberg’s call for companies to ramp up investment.

Macquarie Group CEO Shemara Wikramanayake. Picture: AAP

Macquarie Group chief executive Shemara Wikramanayake has backed Treasurer Josh Frydenberg’s call for companies to ramp up their investment plans to help buoy the domestic economy.

Mr Frydenberg polarised the business community this week when he called for companies to focus more on investing and productivity growth over dividends and returning capital to investors.

Mr Frydenberg said renewed investment in technology and business-led capital spending was needed to spur productivity growth, saying “we cannot simply rely on high commodity prices to boost national income”.

Read more: Treasurer tells CEOs: get positive | Tax cuts, low rates to boost growth: Wesfarmers’ Rob Scott | Executives reject Treasurer’s plea for investment

Ms Wikramanayake supported his comments around investment and productivity as she stressed Macquarie saw “a lot of opportunities” to keep investing across areas including infrastructure and renewable energy.

“We would endorse that wholeheartedly,” she told journalists on a call after announcing a $1 billion capital raising to fund a pipeline of new investments.

“In all of those (sectors) we see opportunities for structural change and investment.”

In financial services, Ms Wikramanayake said Macquarie continued to invest in new technology as the banking market evolved and changed.

But despite Macquarie’s endorsement, Mr Frydenberg’s comments put some CEOs off-side this week.

Fortescue Metals CEO Elizabeth Gaines said the mining industry was doing its fair share to boost national economic growth, contrary to the Treasurer’s suggestions shareholder returns were crimping investment in companies’ future growth.

Boral boss Mike Kane also rejected the call from the Treasurer to prioritise investment over capital returns to shareholders, warning the nation’s political leaders should not tell corporate Australia how to run their business.