Japan-Australia Investment Report 2025: Partners in Economic Security

HSF Kramer and The Australian National University are pleased to present the ninth annual Japan–Australia Investment Report. The 2025 edition provides a detailed analysis of the trends shaping one of Australia’s most significant bilateral investment relationships.

Drawing on more than 100 interviews and an extensive review of cross-border M&A transactions and partnerships, the report brings together our findings and insights from a detailed examination of the trends that shaped 2025 and identifies the key drivers that will influence the trajectory of the bilateral relationship in 2026 and beyond.

Japanese M&A activity reached a record 77 transactions and 53 partnerships during 2025, with total Japanese direct investment rising to a record AUD 159.5 billion. These investments continued across a wide range of sectors including energy & resources, critical minerals, real estate and housing, renewables and decarbonisation, technology, financial services, consumer goods and infrastructure. The trends observed in 2025 confirm that Japanese capital and expertise remain essential contributors to Australia’s economic growth and productivity.

Japan and Australia’s relationship has long evolved beyond its traditional strength in energy and mineral resources and is now built on broader economic security, combining strategic alignment and economic complementarity.
 
It is an important moment for the Japan–Australia investment relationship. The strength and complementary nature of this partnership remain clear and continue to be supported by government initiatives, bilateral cooperation and business.

The report is available in English and Japanese here: 
https://www.hsfkramer.com/insights/2026-04/japan-australia-investment-report-2025