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A dedicated ‘Minister for Sydney’ could revitalise Sydney’s position as a leading economic powerhouse in the Asia-Pacific region, according to a new RSM Australia report.
A dedicated ‘Minister for Sydney’ could revitalise Sydney’s position as a leading economic powerhouse in the Asia-Pacific region, according to a new RSM Australia report.
The report, ‘Leading Cities – Sydney 2030: Australia’s global metropolis’ calls for a dedicated Minister as one of eight key recommendations to bolster Sydney’s status as a global business destination.
Other recommendations include implementing measures to address high cost-of-living pressures such as tax relief for lower income earners, increasing skilled workers in the advanced manufacturing sector, and supporting more international students to call Australia home and participate in the Australian labour market.
A clear vision for Sydney's future
Business Sydney Executive Director, Paul Nicolaou strongly supports the recommendation given the highly complex task of developing policies and delivering services for a city of Sydney’s size and diversity.
“The appointment of a Minister for Sydney is essential to ensure our city can continue its growth story as a premier global city,” Mr Nicolaou said.
"We have Ministers for the regions and regional cities but there has been an apparent reluctance to appoint a Minister for the State capital, the biggest population centre and economic engine room."
“A Minister for Sydney could have responsibility for shaping the Government’s vision for the City, honing policy development and ensuring proper coordination of the delivery of services.”
Addressing Sydney's complex economic challenges
RSM Australia Economist Devika Shivadekar says the report highlights the complex challenges currently facing the city including rising construction costs amid a tight labour and resource market, a lack of affordable housing, and increasing demand for skilled workers across a variety of industries.
“Although Sydney’s economy is on the mend in a post-pandemic world, it’s still facing a number of complex challenges that are hindering growth,” Ms Shivadekar said.
“Inflation continues to be a pain point, alongside higher interest rates which together are escalating the cost of living and business within the city."
"Sydney’s lack of affordable housing is having significant negative flow-on effects for the city, leading to negative interstate migration and hampering the city’s economic growth as more people move cities and in some instances, states, in search of affordable housing."
“Addressing these economic challenges in a coordinated manner will be critical to maintaining Sydney’s economic vitality and preventing the “brain drain” that is seeing valuable talent and their economic contributions leave the city.”
While a coordinated effort will be needed to address the current challenges facing the city, Ms Shivadekar says the positive economic opportunities will demand an equally considered approach to secure the city’s future as a global business destination.
“Sydney’s established financial hub, burgeoning tech hub and pipeline of State Government-funded infrastructure projects, including Australia’s largest public transport project, Sydney Metro, are all positive signs for Sydney’s economy."
“It’s important that our decision makers carefully consider how these economic opportunities can be maximised to transform, revitalise and strengthen Sydney’s economic position and global status.”
