Amanda Lang Speaks with the CEO of TMX Group
Why It Matters
The analysis highlights that despite record foreign investment, policy gaps and tax complexity are stalling domestic capital formation, threatening Canada’s long‑term competitiveness and fiscal health.
Key Takeaways
- •Canada’s deficit shrank to $67 billion, still sizable this year.
- •Foreign direct investment hits 20‑year high of $97 billion.
- •TMX CEO warns decline in Canadian‑listed energy and mining firms.
- •Canada losing startup pipeline: 70% to 32% raising capital domestically.
- •Calls for comprehensive tax reform and certainty for long‑term projects.
Summary
The episode opens with Canada’s latest fiscal update: the federal deficit narrowed to $67 billion, the Canada Strong fund was announced, and foreign direct investment reached a two‑decade high of $97 billion. Host Amanda Lang then interviews John McKenzie, CEO of TMX Group, to gauge whether that capital is translating into domestic growth. McKenzie points out mixed signals. While FDI inflows are strong, the number of companies listed on Toronto’s exchanges has halved, and financing for energy and mining projects is near zero. Recent policy tweaks—such as the R&D tax credit fix and a new major‑projects office—are steps forward, but they address symptoms rather than the underlying uncertainty that deters long‑term private‑sector investment. He underscores a worrying trend: the share of Canadian‑led firms raising a million dollars or more at home fell from 70 % a decade ago to just 32 % today. "We’re not doing enough to spur long‑term investment," he says, calling for a non‑partisan tax commission to overhaul capital‑gains treatment, streamline credits, and provide certainty for multi‑year projects. The conversation signals that without sweeping tax reform and a clearer project‑approval pathway, Canada risks losing both established players and the next generation of innovators, limiting future growth and eroding the tax base.
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