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Gemini confirms Australia as a key global financial centre.



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Media Release

The Hon Joe Hockey, MP

Minister for Financial Services and Regulation

 

24 November 1999

56/99

 

GEMINI CONFIRMS AUSTRALIA AS A

KEY GLOBAL FINANCIAL CENTRE

 

The Minister for Financial Services & Regulation, Joe Hockey, today welcomed the re lease of Gemini Consulting Group’s Asia Pacific Capital Markets Survey 1999: Benchmarking Study of Operations Costs.

 

“Gemini Consulting Group’s survey is great news for Australia. Sydney is cost competitive in all capital market functions from front to back office activities,” the Minister said.

 

In 24 key categories, Sydney lead its competitors in 12, compared with Hong Kong (7) and Singapore (5).

 

“The survey confirms Sydney’s position as a centre for global finance in the Asia Pacific region”.

 

Gemini Consulting reported on the comparative costs of processing foreign exchange, money market, debt securities and derivative transactions and for the first time, covered all the major financial centres in the Asia pacific region - Sydney, Hong Kong, Singapore and Tokyo.

 

Although Hong Kong, Singapore and Sydney compared favourably in the report, results show that Sydney outshone its competitors with labour costs significantly cheaper and higher volumes feeding through to low back office costs.

 

The report noted that, “…many bankers expressed an interest in the potential cost advantages of Sydney for both labour and space as well as Sydney’s high availability of technology skills.”

 

“International financial institutions can substantially benefit from locating in Sydney, taking advantage of the lowest factor costs in the region,” the Minister said.

 

“International financial institutions can substantially benefit from locating in Sydney, taking advantage of the lowest factor costs in the region,” the Minister said.

 

In its report, Gemini indicated that Sydney or Singapore is most likely to become the region’s primary processing centre in the Asia Pacific.

 

See the attached tables for a full comparison of back office unit costs and costs per employee.

 

 

Media Contact:

Mathew Abbott, Minister’s office, (02) 6277 7230, 0413 076 213.

The Minister’s media releases and speeches are available on www.minfsr.treasury.gov.au

 

 

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md 1999-11-26  10:07