Asian trip ‘mission possible’ for Luxon
PM keen to get to work on his goal of doubling NZ exports in 10 years
Christopher Luxon is pumped to “get his hustle on” and lead his first business mission offshore as Prime Minister. He’s starting with Southeast Asia where he will be on comfortable — yet challenging — ground, meeting powerful political leaders who each have a strong focus on their country’s business and economic success.
The mission sets off tomorrow to take in briefings and meetings in Singapore, Bangkok and Manila. There will be 24 business representatives on board from across the gamut of New Zealand business. They will also be led on the ground by co-leaders Miles Hurrell, CEO of Fonterra, and Dame Therese Walsh, chair of ASB and Air New Zealand.
Luxon has set a bold agenda to double New Zealand’s exports over the next 10 years. This is no easy feat.
It requires his Government to adopt a growth mindset and business to follow suit. It is a message he will bash home repeatedly on the multiple business missions he will take offshore this year.
But the Prime Minister is an optimist and is promising the business delegation and the travelling media who will accompany him that the jam-packed one-week trip will be not only fun and exciting but also importantly productive.
Luxon’s contention is that while New Zealanders are seen as straightup in the Asean (Association of Southeast Asian Nations) region, we don’t have the influence we could. Relationships are multifaceted and predicated on trade, security, defence and intelligence ties all wrapped in together.
Courtesy of Australia Prime
Minister Anthony Albanese, Luxon met many of the Prime Ministers and Presidents of the Asean countries at a Melbourne summit this year.
His contention is that they are excited New Zealand is renewing its ambition to not only grow trade and business but also to deepen rapport and grow relationships with their countries.
Unlike the recently outvoted Labour Government — which had a focus on stitching up new trade deals with Britain and Europe along with the upgrade of the China free trade deal, the CPTPP, Apec and more — Luxon will primarily focus on deepening business with Indo-Pacific nations during this year.
It’s no accident he has begun his offshore mission programme with Southeast Asia, where he wants to expand opportunities.
He is a fan of the Singapore model — the way in which Government and business pal up to drive the growth of the Singapore economy.
Singapore Prime Minister Lee Hsien Loong will host him for lunch during the two day stay in Singapore. Lee is in the twilight of his lengthy period as Prime Minister, but he is a willing coach for other political leaders, not just when it comes to managing an economy but also how to cope and thrive with the impact of Singapore’s nearby and much larger neighbour, China, when it comes to fierce economic competition.
Singapore is tiny in physical size but Lee has used China’s focus on growth as an example to spur Singaporeans on to greater achievement.
Former Prime Ministers Helen Clark and Sir John Key each had different mindsets, but each enjoyed productive relationships with Lee — Clark as the student of international affairs and a respected global public servant in her own right, and, Key as a businessman turned politician.
Thailand is of another order. That’s where Luxon will meet a kindred spirit.
Our Prime Minister is fond of saying New Zealand is under new management and is open for business. Thailand’s relatively new Prime Minister, Srettha Thavisin, who took office in September, is a former property mogul who loudly sings a similar song.
Already the 62-year-old has made more than 10 foreign trips to court investors including to China, Japan, the United States and the World Economic Forum in Davos, Switzerland.
Thailand’s economy has stagnated while inequality has soared.
As Time recently reported, Srettha wants to boost Thailand’s role as a logistics, healthcare and financial hub. He’s also set about raising Thailand’s profile on the world stage, hosting US National Security Adviser Jake Sullivan and China’s top diplomat Wang Yi in January for sensitive discussions between the superpower rivals.
He’s not the first business man turned-politician to strive for corporate dynamism in government.
As he told Time: “Being CEO of a company, you realise you have a limited amount of power. But what I find most surprising is the lack of power that the Prime Minister has.”
President Ferdinand Romualdez Marcos Jnr, commonly referred to as Bongbong and by the initials BBM, is the final leader on Luxon’s dance card.
The Philippines President is from a political dynasty but has strong business inclinations. He embarked on a Wharton School MBA before being drawn home to focus on politics.
The Philippines economy has done well under Marcos.
Inflation subsided from a 14-year high of 8.7 per cent in January 2023 to 3.9 per cent in December 2023. The Philippines also saw third-quarter growth of 5.9 per cent, the strongest in Southeast Asia.
Luxon will rate the mission a success if his political counterparts and those from business get the message that New Zealand is positive, ambitious, aspirational and keen to forge the relationships that will unlock economic benefits for both sides.