Don't fear foreign interest: ANZ chief ANZ chief executive Mike Smith will today warn that Australia risks giving away crucial opportunities by turning its back on foreign investment, stressing it does not need to come at the expense of keeping control of national assets, institutions or our identity. But in a speech to the 51st Japan-Australia Joint Business Conference in Tokyo this morning, Mr Smith will claim that despite the renewed debate on foreign capital dominated by "the usual suspects adopting the usual positions," the nation's leaders now understand the importance of Asian capital to Australia's future better than at any time in the recent past. "Our new Prime Minister, Tony Abbott, has already shown a strong commitment to deepening relationships with Asia, which is very welcome," Mr Smith will say. In recent weeks, for example, we have seen positive progress with Indonesia; priority is being given to completing free trade agreements with China, Japan and South Korea; and Prime Minister Abbott has highlighted that Japan is Australia's 'closest friend in Asia'. Mr Smith believes Australia's decades-long relationship with Japan has shown that foreign investment increases competition and brings innovations that boost productivity and economic growth. To me, the Japan-Australia relationship demonstrates that foreign investment doesn't have to come at the expense of control of our national assets, our institutions or our identity. Australia and Japan have a strong friendship based on mutual trust and reliability established through many years of collaboration in trade and investment," he will say. In Australia, we have to recognise the lesson of our relationship with Japan is that deep and lasting connections with the opportunities of the Asian Century will come through trade and through accessing Asia's growing pools of capital. Our relationship shows that there's no reason for foreign investment to challenge our national identity. The equation is to deal sensibly with the control questions and to be innovative with funding structures we develop. His comments come at a critical juncture after Joe Hockey said he would decide by December 17 on the controversial $3 billion Archer Daniels Midland takeover offer for GrainCorp. The Foreign Investment Review Board has assessed the deal and will make a recommendation to the Treasurer. The Nationals, including Deputy Prime Minister Warren Truss and MP Barnaby Joyce, have previously urged Mr Hockey to oppose the takeover. As has Liberal senator Bill Heffernan. If no decision is made by the government, ADM will be allowed to go ahead with the deal. Chinese group Yanzhou Coal is also waiting on approval for an application to overturn previous undertakings to FIRB and delist the shares of its Yancoal business, while State Grid of China is awaiting approval for the multi-billion-dollar purchase of a stake in energy distribution businesses SP AusNet and Jemena from Temasek. Doug Ferguson, partner-in-charge at KPMG's Asia Business Group, said the firm had just finished a national roadshow of presentations to about 250 Chinese clients on the implications of the new government's policies. Most of the feedback has been very positive. They understand the changes that are coming in, they appreciate the scaling back of things like the carbon tax and MRRT. They are pleased at a cut in the corporate tax rate. They understand that certain things are going to remain, like the thin cap rules. And as long as there is certainty and consistency for all, they are quite happy. They feel as though we have a stable platform now for foreign investment. Earlier this month Mr Abbott led a delegation of business leaders to Indonesia, including Commonwealth Bank chief Ian Narev, BlueScope chief Paul O'Malley, Leighton Holdings boss Hamish Tyrwhitt, Telstra chairwoman Catherine Livingstone and Visy Industries chairman Anthony Pratt, to back up his claim following his election victory that "Australia is open for business." Following a recent meeting with Chinese President Xi Jinping, Mr Abbott said he would be prepared to accept a pared-down trade deal with China for the sake of a speedy resolution to talks that had been through 19 rounds since 2005. But Mr Smith will today stress that Japan remains Australia's closest and most mature bi-lateral relationship in the region. "Old friendships need to be nurtured with the same care as new ones," he will say. He believes businesses in both countries will stand to gain significantly from a high-quality, comprehensive free trade agreement with Japan. Importantly, he believes the FTA would help strengthen trade in agriculture, helping Japan realise its food security objectives while providing export opportunities for Australia. "An agreement which liberalised and facilitated investment, including in the energy and resources sector, would attract more investment in both directions and be consistent with Japan's objective of promoting inward FDI and it would contribute to Australia's economic growth," he will say. Japanese investment in Australia is currently significantly greater than any other Asian country, and strong growth in Japan would likely be felt across a range of sectors including finance, agribusiness, fisheries, resources, technology, food and beverages, tourism and advanced manufacturing.