This week we’ve been on the ground in Asia supporting Invest New Zealand’s ongoing attraction efforts for the Active Investor Plus (AIP) visa programme, with events in both Singapore and Hong Kong bringing together a highly engaged and influential group of investors and advisers.

In Singapore, the event, hosted at the residence of New Zealand High Commissioner Gabrielle Rush, brought together a strong cross-section of the AIP ecosystem, including fund managers, legal advisers, bankers, and other key participants who play a central role in shaping investor outcomes.

A further event in Hong Kong, hosted by Invest NZ and featuring Consul-General Peter Lund, continues that momentum, reflecting sustained offshore interest in New Zealand as a destination for capital and residency.

There is no doubt the programme is gaining traction. But alongside that momentum sits a series of structural tensions that deserve careful consideration.

The Growth vs Balanced Tension

At the core of the AIP framework is a clear policy distinction:

• The Growth category offers a lower investment threshold (NZD $5M over 3 years) and reduced residency requirements, but carries higher investment risk and is intended to actively stimulate the New Zealand economy.
• The Balanced category requires NZD $10M over 5 years, with more flexibility for passive investments such as government bonds and no engagement required with Invest NZ.

In practice, this has created an inherent tension.

Growth investments are expected to deploy capital into productive sectors of the economy. However, there has been increasing scrutiny—both in the media and from government—around the extent to which some funds are being conservatively managed, including capital being held in term deposits rather than actively deployed.

This raises a fundamental question: how do we balance investor protection and prudent fund management with the programme’s underlying objective of driving genuine economic growth?

Market Depth and Deployment Challenges

A recurring theme in discussions with both investors and industry participants is the relative scale of New Zealand’s commercial market.

There are legitimate concerns about:

• The depth of investable opportunities
• Wealth preservation over relatively short investment horizons (particularly the 3-year Growth term)
• The ability to sustainably deploy large volumes of capital without distorting markets or increasing risk

These are not new issues. Similar challenges were observed under earlier investor visa settings, where capital deployment did not always align with policy intent.

Private credit has emerged as the largest recipient of AIP capital to date. While this provides a structured pathway for investment, questions remain about its broader economic impact, particularly where lending activity results in refinancing rather than new capital injection into New Zealand businesses.

Policy Direction and Possible Reform

The Minister has already signalled a willingness to intervene, including tightening settings around certain investment structures.

Looking ahead, several areas are clearly under active consideration:

• Refining acceptable investment settings to better align with growth objectives
• Re-engineering broader investor visa frameworks (including BIV settings)
• Exploring additional categories, including potential start-up or innovation-focused pathways
• Revisiting the role of property investment, particularly given New Zealand’s housing shortage and current market conditions

Property, in particular, remains a complex issue—balancing economic benefit, public perception, and the need for appropriate safeguards.

A Changing Global Context

Beyond policy mechanics, global dynamics continue to play a significant role in driving investor interest.

Geopolitical uncertainty, capital mobility, and long-term wealth preservation are increasingly influencing where high-net-worth individuals choose to invest and reside. In that context, New Zealand’s relative stability—and, as some have noted, even its geographic distance—has become a strategic advantage.

At the same time, domestic political considerations inevitably shape the pace and direction of reform, adding another layer of complexity to an already nuanced policy landscape.

A Personal Reflection

One of the more striking observations from these events has been the calibre of individuals involved—both within New Zealand’s ecosystem and among offshore investors.

There is a depth of experience, humility, and long-term thinking that underpins many of these conversations. As one speaker aptly noted, New Zealand has no shortage of “Clark Kents”—individuals quietly operating at a very high level without fanfare.

That understated capability is, in many ways, one of the country’s strengths.

Getting the Settings Right

The opportunity in front of New Zealand is significant.

Few economies are as well positioned to use immigration policy as a lever for economic growth. But to fully realise that opportunity, the AIP framework must strike the right balance between:

• Attractiveness to global investors
• Integrity and credibility of the system
• Genuine economic contribution

Getting those settings right will determine whether current momentum translates into long-term success.