Malcolm Turnbull says the nation needs a leader who will respect the intelligence of the Australian people. Photo / Getty Images
Malcolm Turnbull says the nation needs a leader who will respect the intelligence of the Australian people. Photo / Getty Images
PM’s promise that he will focus on economic management was just what business leaders wanted to hear.
Australia's new Prime Minister Malcolm Turnbull is a man who understands business and understands the future.
The former investment banker made an estimated A$60 million by helping to expand then sell internet provider OzEmail way back in the last millennium and he is now estimated to be worth close to A$186 million.
Contrast this with the man he replaced. After losing the Prime Ministership last week, Tony Abbott sent his resignation to the Governor General by fax.
When Turnbull addressed the Australian people as Prime Minister for the first time on Monday night, his words were like a tonic for the business community, which had long bemoaned the lack of leadership and direction from the Abbott government. No longer did we have a leader whose main message was that we should be afraid - of refugees, of terrorists, of gay marriage, of action on climate change, of tax rises and of the Labor Party.
Instead, Turnbull's message was one of optimism, as one wag put it: "Hope, not nope".
"We are living in the most exciting times to be an Australian," he said minutes after defeating Abbott in a party room vote. "The rate of economic and technological change is utterly without precedent. The opportunities and challenges of a rapidly globalising economy are remarkable."
The next day in Parliament he expanded on his theme.
"An Australia which succeeds in remaining a high wage, generous social welfare net economy, which should be our goal, must be agile, must be dynamic, it must be looking to the future," he said. "The future is one of great opportunities and that requires confidence and leadership and it will be lost if we embrace the politics of fear and scaremongering."
Turnbull's promise that he will focus on economic management was just what business leaders wanted to hear.
One of Turnbull's key points when he took over was that Australia needs a leader who will "respect the intelligence of the Australian people" and instead of governing by slogan, takes the time to explain why we need economic reform.
Australia has an unsustainable budget deficit that will need to be fixed with spending cuts and tax reform. Raising the GST from 10 per cent to 12.5 or 15 per cent is a logical first step, but no government has had the guts to do this yet.
Tony Abbott's government was seen as lacking direction. Photo / AP
Turnbull, a former barrister and journalist before he moved into banking, is a man of considerable eloquence and will be able to persuade voters to swallow the tough medicine.
Abbott and his hapless Treasurer Joe Hockey were unable to do this. Instead, Hockey "fixed" the budget deficit by relying on overly optimistic economic growth projections to increase tax revenues in the future. But this was nothing more than a fantasy.
In fact, one of the things business is most pleased about is that Hockey will no longer be in charge of the nation's economy.
Instead, former Immigration Minister and Social Security Minister Scott Morrison will join Turnbull in marshalling Australia's economy.
Turnbull's recognition of the need for economic reform, his ability to sell it and his understanding of business are all attributes that should provide dividends for Australia in the years to come.
In the meantime, however, his elevation to leader has given business a boost of confidence. In the days following his ascension, there has been an optimism among Australia's business leaders that's been lacking for many years.
"When Malcolm Turnbull was speaking, I felt as if he was talking to me as a businessperson and as a woman," said Diane Smith-Gander, chairwoman of maintenance and construction business Transfield Services.
With any luck, this optimism will translate into investment and growth.
Vital vitamins
New Zealand has done a great job in capitalising on its reputation as a safe and clean food producer and the recent A$1.67 billion sale of vitamin group Swisse shows that Australia can do the same.
Chinese demand for our iron ore and coal might have waned, but it seems they can't get enough of our vitamins. In fact, you could say that Australia is in the midst of a mini vitamin boom.
Hong Kong-based Biostime's purchase of Swisse last week, after it beat off several other Chinese buyers in a bidding war, is the latest manifestation of the trend.
Shares in another vitamin-maker Blackmore have increased five-fold in the past 13 months and shares in Vitaco, which debuted on the sharemarket last week, gained 17 per cent on news of the latest deal. These companies are cashing in on surging demand from Chinese consumers, who want "clean, green" products.
Much of their success has come from internet and grey market sales, with Chinese students buying up stock from Australian chemists and supermarkets to send back home, and companies that can sort out their own distribution channels into China stand to do very well.
