By Mimi Chau SYDNEY, Aug. 19 (Xinhua) -- Economic credibility will be a key issue for Australian voters to consider in the forthcoming federal election. Australian Prime Minister Julia Gillard has staked her party's re-election bid on the economy's resilience, promising more jobs and less tax on business if she wins the tightest vote in nearly 50 years. Bruce McLaughlin, Sinogie Consulting Chief Executive, believes the Labor government has a more realistic economic policy that will help sustain Australian business. 'The economy needs support. The Labor has done an excellent job with the help of the growing China market of maintaining economic stability in very difficult times. I'm concerned that the Liberal Party would withdraw much of that support, and that the economy could crash under a Liberal government,' he told Xinhua on Thursday. Australian Opposition leader Tony Abbott has told the press that he would be cautious about investments by foreign state-owned firms if his party won the election this Saturday. McLaughlin raised concerns that the Liberals might turn even more xenophobic, and restrict foreign investment in Australian industry. 'This carries the risk of isolating Australia economically, cutting us off from useful foreign capital and technology, and leaving Australian companies vulnerable to retaliation in overseas markets. Pandering to xenophobia seems to be something that both major parties are doing in this election, and it's stupid.... it's our connections to the rest of the world, and in particular to China, that sustain us,' he said. McLaughlin noted Gillard and her administration have no plans to deviate significantly from the economic policy followed under former Prime Minister Kevin Rudd. 'I think that's a good thing. This policy kept Australia stable when most other OECD countries were in economic freefall. She seems to be planning slow and gradual reductions in spending to bring the budget back to surplus. The Liberals seem to me to be planning sudden cutbacks which I fear could destabilize the economy,' he said. McLaughlin believes Gillard can successfully lead Australia into the future with her strong beliefs and principles. 'If she could continue to be the Julia Gillard that we saw as Deputy Prime Minister someone with strong beliefs and principles, and an understanding of what's happening to people across Australia then she could. If she continues to allow herself to be controlled by right-wing factions within the party, I suspect that voters will become disillusioned,' he added. Australian Chinese Community Association Chairman Henry Pan agrees economic management is crucial to Labor's re-election hopes. Pan believes Gillard will be a better Prime Minister than the ' too conservative' Tony Abbott. 'I think Gillard's economic policy would strengthen the ties between Australia and China. However, it all depends on how the government implements the economic policy and develop relations under the foreign affairs and defense policies,' he told Xinhua. Pan stressed the importance of recognizing the contributions of Chinese Australians and provide more assistance to the Chinese community services, regardless of the election result. Gillard, the incumbent Australian Prime Minister, has gained a slight lead in the latest opinion polls ahead of the election on Saturday, Aug. 21. 