I. Entrepreneurs’ Core Argument: Immigration as a “Catalyst” for Economic Growth
Filling Key Skill Gaps
Robin Khuda, the founder of AirTrunk (a technology immigrant from Bangladesh), pointed out that 30% of his company’s employees are immigrants, particularly in engineering and cloud computing, where they heavily rely on foreign talent. The slow visa approval process (some technical visas take over 12 months) has led to project delays, directly hindering business expansion. Cliff Obrecht from Canva emphasized that the pool of local tech talent in Australia is limited, and without attracting top global talent, companies will struggle to compete with Silicon Valley or Singapore.
Stimulating Innovation and Investment
Immigrant entrepreneurs have made significant contributions to Australia’s tech ecosystem. For example, Khuda’s AirTrunk has become one of the largest data center operators in the Asia-Pacific region, valued at over AU$10 billion. Canva’s workforce includes 40% immigrants, and its success is partly due to its multicultural team. A 2023 report by Goldman Sachs found that immigrant-founded companies make up 60% of Australia’s tech unicorns.
Investor Insight:
Focus on industries that rely on highly skilled immigrants (such as data centers, SaaS, and clean energy), as these sectors may experience significant growth if immigration policies are loosened.
II. Policy Debate: Balancing Economic Growth with Public Pressure
Supporters:
• Business Groups: According to the Australian Business Council (BCA), skilled immigrants contribute approximately AU$37 billion annually to the economy, particularly in infrastructure, healthcare, and tech sectors.
• Economists: Immigrants can alleviate aging population pressures and boost productivity. Morgan Stanley predicts that if annual immigration rises to 250,000 (up from about 190,000), GDP growth could increase by 0.5%.
Opponents:
• Housing and Infrastructure: With a current rental vacancy rate of just 1%, an influx of immigrants could exacerbate housing price increases. UBS has warned that housing shortages may limit the extent to which policy can be relaxed.
• Labor Market: Unions are concerned that immigration could suppress wages, especially for low-skilled jobs.
Key Move:
The Labor government plans to launch a “High Potential Individual Visa” (HPI) in 2024 for top graduates from global universities, although the quota has not been set.
Investor Strategy:
• Short Term: If policies loosen, prioritize investing in stocks related to tech and engineering services (e.g., NextDC, Xero) and immigration-related real estate trusts (e.g., Goodman Group).
• Long Term: Be cautious of policy volatility and diversify investments into local workforce training programs (e.g., TAFE partnerships).
III. International Comparison: Australia’s Competitive Disadvantage?
• Canada: Launched the “Global Talent Stream,” where 90% of technical visas are approved within two weeks. In 2023, Canada attracted 120,000 tech immigrants.
• Singapore: The Tech@SG program offers foreign workers 5-year visas and up to 200% corporate tax reductions.
• In comparison, Australia’s immigration process is complex and lengthy, potentially causing talent loss. Companies like Canva have set up branches in the U.S. to circumvent restrictions.
Recommendation:
Watch whether the government follows international best practices by simplifying the visa process or offering tax incentives, which will directly influence the location decisions of tech companies.
IV. Conclusion and Action Guide
• Policy Indicators: The 2024 federal budget (to be released in May) may provide clues on immigration quota adjustments, so stay alert.
• Industry Selection: Sectors like data centers, AI, and renewable energy, which heavily rely on skilled immigration, are more resilient.
• Risk Mitigation: Include housing development, vocational education, and other counter-cyclical sectors in your investment portfolio to hedge against policy uncertainty.
As Khuda said, “Immigration is not a choice, but a necessity.” For investors, the key lies in identifying policy advantages and potential conflicts early, seizing the opportunity in the battle for talent.
