Strategic Insights Update

The latest Regional Movers Index by the Regional Institute Australia and Commonwealth Bank shows that the Sunshine Coast remains the top LGA by net internal migration for the fifth consecutive quarterly period.  The region is an attractive trade and investment hub due to its a highly skilled and educated workforce, a focus on innovation, an increasingly diverse economy, accessibility to major national and international markets and well-planned areas for business growth.

Defence technology sharing amongst AUKUS partners will become easier from 1 September with the United States removing restrictions on 70% of defence exports to Australia currently subject to the US International Traffic in Arms Regulations (ITAR). The move mirrors similar liftings of restrictions in the UK and Australia and will facilitate increased defence trade and technology sharing. Australia’s defence industry grew 4.1% during 2022-23 as global military spending increased to a record $2.4B in 2023. 

Boeing has invested in Wagner Sustainable Fuels to develop a sustainable aviation fuels (SAF) facility in Brisbane. This project, converting waste-based feedstocks into SAF, will reduce aviation carbon emissions, create local jobs, and strengthen Australia's fuel security. Currently, Australia imports 90% of its liquid fuel. Boeing's investment supports Australia's climate goals and highlights the importance of SAF in decarbonizing aviation and achieving global emissions targets by 2050.

Malaysian Prime Minister Anwar Ibrahim announced the country plans to join the BRICS group of emerging economies. Malaysia will begin the formal process after receiving feedback from BRICS chair, South Africa. Anwar expressed support for the Global South and criticised the dominance of the US dollar in international trade. Anwar is also visiting India to rekindle their bilateral relationship. Malaysia is currently Queensland’s 7th largest trading partner, mainly due to coal and confidential items. 

Australian 'reduced methane' beef is set to be exported later this year, following a partnership between CH4 Global, CirPro, and Queensland feedlot Mort & Co. The beef comes from cattle fed with CH4 Global's ‘Methane Tamer’, a seaweed-based supplement that lowers methane emissions and the carbon footprint of beef. Successful trials showed that the supplement not only reduced methane but also improved feed conversion efficiency without affecting beef quality. The agreement aims to scale production to meet growing export demand for low-carbon beef, with a target of processing 100,000 cattle per day.

Australia's avocado production is set to increase by 40% over the next five years, leading to an oversupply and significant price drops. While consumers benefit, growers face squeezed margins due to rising costs. Exports, especially to Asia, have grown, but competition and trade barriers present challenges. The industry is prioritising export quality and market access to maintain the fruit's premium status. Queensland exported almost $37 million worth of avocados during 2023-24.

Gold Coast Airport will resume direct flights to Hong Kong after six years with a seasonal service by Hong Kong Airlines from January 17 to February 15, 2025. The route, supported by the State Government and local tourism bodies, marks the airline’s first Australian connection since Covid-19. This service is expected to bring around 6,000 passengers, boosting the local economy during the Chinese Lunar New Year. The hope is that this will lead to more permanent routes with key Asian markets.