Boards of Australian businesses to develop deeper Asian ties

A THIRD of all board members of Australia's top 200 ASX list companies should have a "deep" experience of Asia, the government says.

THE Federal Government wants to see a third of all board members of Australia's top 200 ASX list companies with a "deep" experience of Asia, as part of its move to encourage stronger business ties with the region.

The 312-page Australian in the Asian Century Report released today has called on the boards of the country's top listed companies to include more directors with a direct expertise in the Asian region.

It has called on the Australian Institute of Company Directors to consider including Asian cultural competency training into its company directors training courses.

It also suggests that the ASX Corporate Governance Council could ask companies to report on their businesses practices designed to promote Asian expertise within Australian companies.

"Australian firms need new business models and new mindsets to operate and connect with Asian markets," the report says.

WHITE PAPER: Australia in the Asian Century

The report says the Federal Government will "work to make the region more open and integrated, encouraging trade, investment and partnerships.

"Firms will adapt their business models to seize opportunities in our region."

"We encourage listed company boards to include more business people with direct expertise from within the region," it said.

The report highlights the work in Asia of several leading Australian companies including the ANZ's strategy of building a "super regional' bank and transport company Linfox.

It also points out the work done by accounting body, CPA Australia, which has 33,000 members in Asia to promote ties between the accounting industry in Australia and Asia.

The report predicts that Australia's trade links with Asia will rise to at least a third of GDP by 2025, up from 25 per cent last year.

It says that Australia will be "part of comprehensive region-wide agreements that substantially reduce the cost of doing business in Asian markets by lowering trade and investment barriers, better aligning economic regulations and corporate governance arrangements and enhancing connectivity of infrastructure."

The report says the Federal Government will move to make it easier for low risk visitors, including tourists, to come to Australia by streamlining visa processing arrangements.

The report recommends expanding Australia's diplomatic footprint in Asia with a full embassy in Mongolia, and consulates in Shenyang in China, Phuket in Thailand and eastern Indonesia.