Australian infrastructure offers compelling opportunity: QIC

Australia is uniquely positioned to offer a diversified and resilient exposure for infrastructure equity investment, supported by its solid economic fundamentals and investor-friendly environment, as well as regulatory stability and political security, said Kirsten Whitehead, a partner at Queensland Investment Corporation (QIC). 

Australia’s ample natural resources also make it an attractive investment destination as private capital is expected to increasingly play a critical role in bridging the funding gap for the country’s significant pipeline of infrastructure projects, she told The Korea Economic Daily in a written interview.
 
Whitehead said Australia is appealing to Korean investors looking to capitalize on the energy transition.

“Korean investment in Australia has almost tripled from A$12.8 billion ($8.3 billion) in 2011 to A$29.3 billion in 2023, confirming that Australian industry provides an attractive source of diversification for Korean investment,” said Whitehead. 

“For 40 years, Australia has been a global leader for private infrastructure equity investment, resulting in a sophisticated and mature market,” she added. 

ENERGY TRANSITION 

As the world moves toward decarbonization, Australia is well-positioned through ample land, wind and sun to support renewable development, creating a significant investment opportunity over the coming decades.  

“The region’s wealth of natural resources, including critical minerals vital to supporting the energy transition, provides a competitive advantage and point of differentiation compared to other global regions for investment.  

Australia is firming up its position as a “renewable energy superpower” through a range of federal government policies, including the Future Made in Australia plan. 

In the 2024–25 budget, the Australian government committed $22.7 billion over the next decade to Future Made in Australia, an initiative aimed at maximizing opportunities as it moves toward net zero. Under the agenda, Australia will also encourage and facilitate significant private sector investment. 

“The ability to invest in Australia’s energy transition is a once-in-a-generation opportunity. In Australia alone, $2.4 trillion of investment is required to reach net zero from 2024 to 2050, equivalent to flows of US$89 billion of capital annually,” she noted. 

“The thematics of decarbonization and decentralization present a new set of investment opportunities in the Australian market.” 

The outcome of the federal election in early May reinforces Australia’s political stability, Whitehead added. Australian Prime Minister Anthony Albanese was re-elected for a second term. 

TRANSPARENCY, STABLE REGULATION 

Australia remains relatively insulated from rising global uncertainty and trade conflicts amid the deglobalization of trade. 

It also boasts regulatory transparency and stability, alongside strong defense and security.  

Underpinning Australia’s security and stability is the region’s role in key defense and trade pacts. Australia’s security relationships include NATO, ANZUS, the Five Eyes Intelligence community, the Quadrilateral Security Dialogue, AUKUS and the Five Power Defence Arrangements. 

QIC is a Queensland Government-owned investment manager and currently manages A$7.6bn in energy assets in Australia and New Zealand as of the end of 2024. 

Some of its Australian and New Zealand energy transition assets include Bluecurrent, a smart metering business providing over 2.5 million electricity and gas meters across Australia and New Zealand; Pacific Energy, Australia’s largest and market leading provider of remote energy solutions; and Tilt Renewables, a renewable energy business and the largest owner of wind generation in Australia. 

It has built a proven 18-year track record in infrastructure investments and has distributed over A$18.9bn to its clients since inception. It currently manages A$38bn (US$23bn) in infrastructure assets. 

Meanwhile, ABL Life Insurance Co. is among the South Korean institutional investors raising exposure to Australian infrastructure and real estate. 

Eoh Jiroo, head of alternative investment at ABL Life Insurance, said Australia is well-shielded from US economic uncertainty and the impact of US tariff policies relative to other countries.  

“It generates attractive yields. Australian interest rates have dropped at a slower pace compared to other countries,” Eoh said in a panel discussion at the international investment conference ASK 2025 on May 22.“The country’s stable regulations are another reason to invest in the country."

Write to Yeonhee Kim at yhkim@hankyung.com

Jennifer Nicholson-Breen edited this article.