2020 CEO Survey: Shemara Wikramanayake, Macquarie

The Australian economy has demonstrated its underlying resilience, says Macquarie chief Shemara Wikramanayake.

What are the three enduring lessons or changes to flow from COVID-19?

First, human resilience — the ability to adapt and respond to the most challenging circumstances, creating new opportunities in the way we work and interact.

Related to that, the ever-greater importance of technology as it intersects every aspect of our lives and businesses from education to health to communication. This will drive a need for greater digital infrastructure.

Third, the ability of governments and businesses to co-ordinate and react quickly to deliver essential outcomes and protect economies and populations.

How would you rate the shape of the Australian economy as we head into the new year?

Despite experiencing such a sudden shock to economic activity and physical restrictions on our ability to respond, in recent months the Australian economy has demonstrated its underlying resilience, ending the year in a much better place than many of our advanced economy peers.

Key to the improved outlook has been our success in containing the virus, which reflects how effectively our governments and institutions have worked constructively together. While it will take some time to fully recover, especially in relation to employment levels, ongoing vigilance, along with the prospect of several highly effective vaccines early next year, points to a continuation of positive momentum in 2021.

What three reforms are needed to sustainably grow the economy?

As Australia moves from pandemic response to economic recovery, we’re likely to see longstanding policy priorities gain traction. Historically low interest rates are providing opportunities for infrastructure investment, including in social and digital infrastructure. There are also global opportunities for governments to work together to accelerate structural shifts such as the transition to a low carbon economy.

What are the three best growth opportunities for your company in 2021?

With stretched public balance sheets driving a bigger role for private capital we see opportunity in those same areas that are likely to be prioritised from a policy point of view which include digital infrastructure, social infrastructure and climate change.

How would you rate business, state and federal government performance this year?

We commend governments for making decisions — often with great urgency and with an evolving level of available information — in response to the unfamiliar circumstances we have all experienced this year. In Australia, the national cabinet approach has served the country well as a mechanism to share information, respond to needs and adopt a co-ordinated approach.

Proactive testing and tracing and targeted lockdowns have protected the health system from undue pressure and all parts of the community, including business, worked well together to support this outcome. As a result, our infection and mortality rates are significantly lower than most countries. And at the same time, a quick and comprehensive approach to financial support provided a bridge to the economic rebound that’s now emerging.