Government Eases Rules for Overseas Investment to Boost New Zealand Economy

New Zealand businesses might soon find it easier to attract international investment. Associate Finance Minister David Seymour has unveiled a plan to reform the Overseas Investment Act, aiming to speed up processes and boost the country’s productivity.

Speaking at the construction site of Auckland’s new Ikea store, Seymour didn’t hold back, saying, “New Zealand is one of the hardest places in the developed world to invest in. Our productivity growth has been disappointing.”

His solution? Make it simpler for overseas investors to get involved, without compromising national interests. “Investing from abroad can bring better tools, technologies, and higher wages for workers,” he added.

Why These Changes?
Seymour explained that when workers have better equipment, they’re more productive—and that means better pay. But lately, New Zealand hasn’t been making much progress. “Over the past decade, our capital-to-labour ratio has barely grown at 0.7% a year. That’s a big drop compared to the 2% growth we saw in the years before that,” he noted.

What’s Changing?
Here’s what the proposed reforms include:
✅ Faster decisions: Most investments will be processed in just 15 days (except for sensitive areas like residential land, farmland, or fishing quotas).
✅ Stronger national interest protections: The government can still step in if a deal doesn’t benefit New Zealand.
✅ More efficiency: Land Information NZ will handle more decisions without always needing Minister involvement.

“High-value investments like major business assets, forestry, and non-farm land are crucial—bringing in about $14 billion annually,” Seymour said. “Other countries attract money and new ideas through foreign investment. We can’t afford to lag behind if we want to raise wages.”

Labour Pushes Back: “This Isn’t in Kiwis’ Best Interest”

Not everyone is on board. Labour finance spokesperson Barbara Edmonds criticized the reforms, calling them a “significant shift” that could hurt New Zealanders.

“Investing here should be a privilege, not an open invitation for overseas companies to buy up our essential assets,” Edmonds said. “These changes make it easier for foreign investors to snatch up key assets—potentially putting Kiwi jobs and incomes at risk.”

She’s concerned that profits from local businesses could end up overseas, weakening rather than strengthening New Zealand’s economy. “Rushed reforms like these jeopardize our economic future,” she warned.