Anthony Albanese has spoken of the entwined destinies of Australia and the Association of Southeast Asian Nations (ASEAN) bloc, using an address in Jakarta to rally support for the opportunities of the region and the potential of its people.
“I am here today to affirm Australia’s belief in the power and value of ASEAN centrality, and to match those words with deeds,” the PM told the ASEAN Indo-Pacific Forum on Wednesday.
“We hold a common responsibility to advance stability, peace and prosperity for every nation that calls Southeast Asia home — to recognise the sovereignty of every country and the inherent dignity of every individual; to ensure this is a region where each of us can shape our own destiny and secure our own future.”
The PM launched Australia’s strategy for economic engagement with the region, describing it as the most significant upgrade of its policy concerning ASEAN for a generation.
The launch coincided with the announcement of $95.4 million for three initiatives aligned with the strategy priorities including a new Southeast Asia Business Exchange Program to boost two-way trade; the formation of deal teams to develop a pipeline of investment-ready projects and advise Australian investors on matters from regulatory approvals to finding local commercial partners; and the creation of a new exchange program for young professionals.
“In 2022, ASEAN accounted for nearly 15% of Australia’s overall trade — greater than our two-way trade with Japan or the US,” Albanese said.
“We can make ASEAN’s next half-century even more successful than the last, and we can share that success together.”
The ambitious plan sets out Australia’s engagement with the combined ASEAN economy by 2040, by which time it will be the fourth largest in the world.
The PM said the plan outlined foundational efforts to bring Australia’s engagement with Southeast Asian economies in line with their pace of growth and expand its role as a trade and investment partner for the region.
“[This is] an overdue strengthening of our engagement to reflect the speed of the transformation underway — and the scale of the opportunities ahead.
“The strategy we outline today reflects an enduring truth: this is where Australia’s economic destiny lies,” Albanese said.
Former Macquarie Bank boss Nicholas Moore, who was appointed Australia’s envoy to Southeast Asia about 10 months ago, has spent most of 2023 travelling across the region and visiting every member of the bloc except for politically embattled Myanmar.
On the basis of consultations the envoy has had with ASEAN trading partners and many hundreds of submissions he was able to pinpoint four priorities in the Invested: Australia’s Southeast Asia Economic Strategy to 2040 report.
They include:
- Raising awareness — strengthening understanding of markets, sectors and emerging trends;
- Removing blockages — addressing barriers to trade and investment;
- Building capability — ensuring Australia and the region have the skills and knowledge to work effectively together;
- And deepening investment — supporting Australian investors to identify, develop and finalise prospective deals in the region.
“My government will respond to all the findings of this comprehensive report in due course but there are some we’re acting on right away,” Albanese said.
The PM also highlighted potential growth sectors identified in Moore’s report including agriculture and food; energy security and the clean energy transition; infrastructure; and education and skills that would inform Australian government policy.
“Australia brings a lot to the table in expertise, goods, services and capital. We are a provider of first-class services, particularly in health and education; our fast-growing tech sector is one of the largest in the southern hemisphere, we are a reliable, high-quality supplier of commodities, including in agriculture, minerals and energy; we are ready to use our strength in critical minerals – as well as abundant sun and wind resources — to support a secure and stable energy transition for the region,” Albanese said.
“There are significant opportunities for our businesses in Southeast Asia’s fast-growing economies, including in infrastructure and the clean energy transition.
“We will also benefit from further Southeast Asian investment and exports, which are already making a notable contribution to the Australian economy,” he said.
The foundations for the plan were already laid, the PM noted, with Australian businesses working alongside local partners. Examples of this included trade partnerships that delivered Cochlear hearing implants to more than 9,000 people in Southeast Asia and coconut products from the Philippines being used to make Australian lamingtons.
“Australia is ambitious for what we can achieve with the region to tackle the challenge of climate change … and we recognise that it’s in all our interests to support the net-zero transition.
“Greater trade diversification, including through supply chains, is also in the region’s and Australia’s mutual interests — There’s so much potential still untapped,” Albanese said.
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