Southeast Asia is a major opportunity for Australian business. Southeast Asia and Australia share bright economic growth prospects, geographical proximity, economic complementarity, and a need for trade diversification.
Southeast Asia’s favourable demographics, industrialisation and urbanisation trends and technological advances will increasingly make it an economic powerhouse to 2040 and beyond.
There is much more Australia and Southeast Asia can, and should, be doing to boost this important economic
relationship. Australia has much to offer as a trusted and reliable partner as Southeast Asian economies continue
to grow.
Invested: Australia’s Southeast Asia Economic Strategy to 2040, was developed by Special Envoy for Southeast Asia, Mr Nicholas Moore AO. The strategy outlines a practical pathway to significantly increase two-way trade and investment between Australia and Southeast Asia. The Australian Government is considering the 75 recommendations made by Mr Moore (see key recommendations on overleaf).
The strategy outlines four categories of required actions to realise the commercial potential between Australia and Southeast Asia:
- Raising awareness
- Removing blockages
- Building capacity
- Deepening investment
Mr Moore’s consultations have been extensive. He has met with more than 750 individuals in Southeast Asia and
Australia across governments, business, and civil society; received around 200 submissions through a public consultation process; and visited all ASEAN countries (except Myanmar).
The strategy examines 10 priority sectors:
- Agriculture and food
- Resources
- Green energy transition
- Infrastructure
- Education and skills
- Visitor economy
- Healthcare
- Digital economy
- Professional and fifinancial services
- Creative industries
The Australian Government will support the immediate implementation of the strategy through three priority initiatives:
- Investment deal teams – new dedicated public and private sector teams to identify, develop and facilitate
investment in commercial projects in the region - Southeast Asia Business Exchange Program to grow trade through targeted sectoral business missions to help small and medium enterprises enter the market, including a Southeast Asia trade and investment promotion campaign in Australia
- Pilot exchange program for young professionals with Australian and Southeast Asian businesses to foster enduring commercial links.
Key recommendations
Raise awareness
- National Cabinet should consider developing a whole-of-nation plan to strengthen Southeast Asia literacy in Australian business, government, the education and training system, and the community.
- Establish a new Australia – Southeast Asia business facilitation initiative to undertake targeted sectoral business missions and build the capability of business chambers.
- Australian Government to work with states and territories, and business to ensure a coordinated approach to promoting Australia, leveraging and building upon the Nation Brand.
- Australian Government to work with the ASEAN Secretariat and business to examine an ASEAN trade, investment and tourism promotion campaign in Australia.
- Develop a strategy to engage with Australia’s Southeast Asian diaspora to inform efforts to deepen SME business links with the region.
- Australian Government to invest in education promotion across Southeast Asia to raise awareness of Australia’s offerings and attract more Southeast Asian students.
- Expand tourism promotion and build industry capability to meet Southeast Asian demand.
Remove blockages
- Continue exploring opportunities to reduce regulatory burden under the Foreign Investment Review Board (FIRB), as the foreign investment framework regime allows, and seek reciprocal action in the region.
- Establish a single-door concierge service to facilitate inward foreign investment.
- Australia’s Trade 2040 Taskforce, in collaboration with Southeast Asian partners, to review the scope of existing FTAs to determine priorities for agreement upgrade negotiations.
- Expand collaboration on trade rules and standards harmonisation with Southeast Asian partners.
- Australian Government to implement the Migration Strategy and associated reforms to improve the visa system to facilitate mobility.
- Australian Government to prioritise updates to air services agreements and explore reciprocal open skies agreements with interested Southeast Asian partners where in the national interest.
- Australian and Southeast Asian governments to increase cooperation with professional bodies and education providers on qualifications recognition.
Build capability
- Extend government-to-government technical assistance to other Southeast Asian countries through a new government-to-government partnerships program and other mechanisms.
- Develop a regulatory framework to facilitate intra-regional hybrid training and work mobility programs in high-priority industry sectors.
- Establish a new public and private sector multi-country program to arrange professional exchanges and internships at the company or organisation level.
- Increase whole-of-government trade and industry policy and commercial engagement capability in Australia’s Southeast Asia diplomatic missions and in Australia to assist Australian businesses to use FTAs and deliver market access.
- Establish a targeted program to support Australian First Nations businesses to increase trade and investment with the region.
- Australian Government to encourage universities and vocational education providers to offer work-integrated learning internships as part of course offerings to Southeast Asian students.
- Australian Government to coordinate a whole-of-nation initiative to better engage alumni, including a scheme for connecting alumni with Australian and Southeast Asian businesses.
Deepen investment
- Australian Government to establish a strategic investment facility for Southeast Asian infrastructure projects, utilising Export Finance Australia and other government-supported funding sources.
- Establish new investment ‘deal teams’ for Southeast Asia, blending private sector and Australian Government capabilities to provide outward investment (including financing) services.
- Australian Government to extend Partnerships for Infrastructure and expand into early-stage project preparation support.
- Australian Government to work with industry to fund a Southeast Asia research grants scheme in areas of mutual interest with Southeast Asia.
- Australian Government to consider establishing Austrade Landing Pads in Indonesia and Vietnam to support Australian tech companies, similar to Austrade’s Landing Pad in Singapore.