Report: Bold leadership need to realise Perth’s ‘undeniably bright’ future

With a stunning natural environment, great weather and strong economy, Australia’s sunniest capital city, Perth, has a lot to offer. Yet to become renowned as one of the world’s leading global cities, much work will need to be done, says a new report from RSM in conjunction with the Committee for Perth.

The report, titled ‘Powering Perth: The path to global recognition’ shares a long list of Perth’s economic strengths, including its reputation as one of the fastest growing cities (economic growth of 4.7% in 2023) and as the nation’s top performing labour market (at 3.4%, Perth has the lowest unemployment rate in Australia).

Building on its thriving mining and natural resources sector, which are crucial for Australia’s power supply as well as decarbonisation efforts, Perth stands out for its potential. Beyond that, there are loads of other strengths that typically operate under the radar: “There’s much more to the ‘City of Light’ than just enviable beaches and a resource sector strong enough to power Australia,” stated the report.

There’s much more in store

Yet the path to becoming renowned as one of the world’s leading global cities needs significant work.

Peter Klinken, Chief Scientist of Western Australia, stressed in the report the importance of moving beyond traditional resource exports: "We can’t continue just taking big rocks, turning them into little rocks and putting them on a ship. We need to capitalise on our comparative advantages, invest at scale and attract the talent to ensure it takes off.”

Perth is also uniquely positioned to lead Australia’s energy transition and decarbonisation efforts, thanks to its abundant renewable resources and innovative industrial practices – which in many cases have their genesis in the city’s resources economy. Major investments in world-leading waste-to-energy projects such as the Kwinana Energy Recovery Facility, reflect a growing commitment to sustainability.

However, the barriers to a more sustainable future include competing interests in a state that owes a significant portion of its wealth to fossil fuel development.

Peta Ashworth, Director of the Curtin Energy Institute for Energy Transition, told the authors: “If we don’t act, Perth will become unliveable. If we want to preserve the things we like about our way of life, there is a need to invest in cleaner forms of energy. But if we can decarbonise Western Australia, we can decarbonise the world.”

Beyond sustainability, the city’s location also offers unique advantages in trade and travel.

Positioned in the same time zone as 60% of the world’s population – including major economies like China, Japan and India – the city is primed to become a regional hub. A $5 billion Perth Airport upgrade underscores its continued investment in infrastructure to improve connectivity and unlock economic opportunities.

Urban development is another critical focus, as Perth grapples with housing affordability, supply issues and population growth. This is leading Perth policymakers and property developers to explore solutions such as mixed-use developments, urban infill and higher density living, particularly around major transit corridors.

The State Government also announced measures to tackle housing and homelessness issues, including a $400 million expansion of the Social and Affordable Housing Investment Fund and $144m for new housing projects. Attracting global talent to support future projects and bolster economic growth is also key to make Perth truly stand out on the global stage.

The city’s strengths in medical research, remote operations and space exploration are promising, but greater investment in science, engineering and technology is vital to align with Western Australia’s commercial reality and long-term vision.

Investments and bold leadership

Craig Amos, partner at RSM supports this view: “The investment we need to make in science, engineering and technology is massive. But if we’re going to move the dial in terms of Perth becoming a global hub, we need a lot more impetus and support to bring those skills here.”

The report’s authors concluded: “Perth’s future is undeniably bright and filled with potential, but its ability to realise this will require bold leadership, a commitment to sustainability and a focused drive to diversify and innovate. Yet, with the right strategies, Perth can transform its narrative and secure its place ‘in lights’ as a global powerhouse.”