Prime minister Anthony Albanese has used the ASEAN special summit in Melbourne to announce a trade and investment package for Southeast Asia.
Albanese announced the $2 billion response to the Moore report at the CEO forum on Tuesday morning as part of a suite of new policies to boost trade in the region.
“In 2022, our two-way trade with ASEAN member states passed $178 billion — greater than our two-way trade with Japan or the US, and our two-way investment with the region was worth $307 billion,” Albanese said.
“But we want to do more — to support regional growth and to realise mutual benefits. To deepen our ties and to boost the skills of our people.
“I know many of you have helped with the development of the Economic Strategy; I am sure you will be able to see where your insights have shaped our work.”
Managed by Export Finance Australia, the Southeast Asia Investment Financing Facility (SEAIFF) investment fund will provide loans, guarantees, equity and insurance to boost Australian trade and investment in Southeast Asia, particularly in support of the region’s clean energy transition and infrastructure development.
This was a key recommendation of Moore’s 2040 investment strategy, which called for more Australian investment in ASEAN nations. Moore noted that while a lot of the friction was taken out of regional trade by the existing free trade agreements, there was still more work to do on educating people on how to navigate an increasingly global marketplace.
The quality, or absence of physical trade infrastructure slowed trade in the area, too — something else Albanese said he was eager to address.
The government will add $140 million over four years to the Partnerships for Infrastructure program, which has contributed to transport infrastructure in Vietnam, Indonesia and Timor Leste.
To promote the idea that trade and investment are a two-way street, business validity visas will be extended from three to five years. The ten-year Frequent Traveller Scheme will be extended to eligible ASEAN member states and Timor-Leste.
“Another recommendation we are actioning is the appointment of 10 business champions, some of whom are in the room today,” said Albanese.
“Our champions are senior Australian business leaders — many of them are here today and I want to thank them. They will be key advocates for Australia’s trade and investment ties with the countries of Southeast Asia.
“This will support ASEAN’s efforts to improve infrastructure development — including early-stage project preparation — and accelerate regulatory reform in order to attract more diverse, quality infrastructure finance.
“The combination of these three key initiatives from the Economic Strategy — the Facility, Partnerships for Infrastructure and Deal Teams — will catalyse greater Australian private sector investment in Southeast Asia and vice versa.”
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