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New Zealand Fortifies Its Tech Sector in Year 2022 Annual Budget

Seeing how much the digital technologies sector has contributed to New Zealand’s overall economy, Wellington is putting the focus on boosting its digital sector by setting aside funds and strengthening emerging strategic weaknesses.

Mindful of achieving a high-wage yet low-emissions economy, the Aotearoan government has allotted a substantial portion of its budget in 2022 to the tech sector, as confirmed by David Clark, Minister for the Digital Economy and Communications.

In 2020, the digital technologies sector contributed NZ$ 7.4 billion to the economy. Since 2015 it has, on average, grown about 77%  faster than the general economy. Budget 2022 provides an additional NZ$ 20 million over four years for two key initiatives in the ITP. 

– David Clark, Minister, Ministry of Digital Economy and Communications

Moreover, the government leader mentioned the government’s digital road map, the Digital Technologies Industry Transformation Plan (ITP). He disclosed that they have been working with the digital sector so it can realise its massive potential as a source of high-paying jobs and export income generation.

However, it must be noted that New Zealand has a focus on what part of its digital economy needs a lift. The answer which should be attended to first lies in how much a particular digital sector has contributed to the overall economy. By that measure, it becomes apparent that Software-as-a-Service (SaaS) is top of that list.

Clark echoed such focus. He said that SaaS and its growth are paramount. Already, New Zealand’s SaaS companies are making their presence felt in the global market and the country has seen how they’ve thrived despite the virus. Thus, Wellington wants to multiply these SaaS successes. Moreover, they prioritised the global market and want to make good on ‘New Zealand’s Tech and Innovation Story’ to the world.

Such a marketing initiative should bring New Zealand tech to key markets, specifically Europe, Australia and the United States of America. It’s important the country capitalise on digital as a strong digital economy.

One that is becoming apparent day by day is the need for more digital manpower. New Zealand needs the “right people”. To address the current “skills mismatch”, the government leaders are targetting the delivery of short courses to widen the digital skills of workers. To do that, they will be encouraging local workers to participate.

Additionally, Wellington is willing to attract the best to come up with better-trained workers. To have world-class digital talent, the country must attract world-class digital talent to teach. To make that happen, they are calling for a rebalance of the immigration system where local tech industries will be given a break from immediate pressures on hiring offshore talent.

A key example here is the possibility of senior roles in ICT being allowed to fast track towards residency in the country. Some of these roles considered are ICT manager, software developers, cloud and data analysts and ICT security experts.


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