Bilateral trade and investment with Southeast Asia are set to strengthen with the Federal Government committing $95.4 million to the cause.
New initiatives to boost trade and investment
On 6 September, the Government launched Invested: Australia’s Southeast Asia Economic Strategy to 2024, outlining three key investment initiatives over four years:
- Investment deal teams ($70.2m): These teams will be based in the ASEAN region and will work with Australian investors, Southeast Asian businesses, and governments to identify and facilitate investment opportunities.
- Southeast Asia Business Exchange ($19.2m): Aims to boost two-way trade and support Australian exporters in entering, competing, and growing in the fast-growing markets of Southeast Asia. It includes a trade and investment campaign to promote opportunities in these markets to Australian businesses and consumers.
- Placements and Internships Pilot Program for Young Professionals ($6m): Help build enduring links between Australian and Southeast Asian businesses.
Strategic alignment with WA Investments
CCIWA’s Chief Operating Officer, Matt Golds, who recently participated in the WA Government’s Indonesia Connect Roadshow trade mission, says the strategy aligns with WA Investments, a collaboration between CCIWA and the WA Government’s Invest and Trade, which showcases investment-ready projects on the global stage.
“WA Investments will support the Government’s strategic delivery of trade and investment initiatives in our State, making WA an ideal destination to do business,” he says.
“WA Investments currently showcases 54 projects across WA and priority industries identified in the Government’s strategy, with a combined value of more than $8 billion.
“Our economy is underpinned by strong trade relationships and investment activity, and this strategy will help industry maximise opportunities with Southeast Asia.”
Prime Minister’s vision
Prime Minister Anthony Albanese says the strategy represents Australia’s most significant ASEAN economic engagement upgrade in a generation.
“In 2022, ASEAN accounted for nearly 15% of Australia’s overall trade – greater than our two-way trade with Japan and the US,” he says.
“Southeast Asia’s fast-growing economies present a major opportunity for Australian business, but we haven’t kept pace with their exponential growth.
“Our economic future lies with Southeast Asia. This strategy outlines how we can harness this growth and seize the vast trade and investment opportunities our region presents.”
Priority sectors identified
The strategy identifies ten priority sectors:
- Agriculture and food: With Southeast Asia’s growing population, rapid urbanisation and improving living standards, demand for food and security is rising. Australia, already a key exporter of the region’s food products, is well-positioned to service this demand.
- Resources: Southeast Asia’s energy demand has risen 3% annually over the past 20 years and is expected to double by 2050. As the region transitions to renewable energy, demand for critical minerals and mining equipment, technology, and services poses major opportunities for Australian exporters.
- Green energy transition: Australia has the expertise and technology to assist Southeast Asia with its transition needs, with potential for investment in clean energy manufacturing. Collaborations on solar, electric vehicles and battery storage supply chains are critical.
- Infrastructure: Urbanisation, climate change and digitalisation are driving infrastructure needs in Southeast Asia. Australia’s sectoral expertise presents an opportunity for investment in the region’s infrastructure.
- Education and skills: A burgeoning middle class and evolving workforce in ASEAN create strong demand for education services, offering opportunities for Australian educators. Continued investment in Australia’s education sector and scholarships will foster economic and people-to-people connections.
- Visitor economy: By 2024, about 181 million Southeast Asians are predicted to travel overseas. Increased two-way tourism can be facilitated by investing in marketing, aviation connectivity, infrastructure, visa processing and training.
- Healthcare: As Southeast Asia’s population ages, demand for healthcare is rising, leading to increased demand for skilled workers, pharmaceuticals and health infrastructure investment.
- Digital economy: The region’s growing tech talent pool, booming digital economy and increasing number of tech start-ups drive significant investor interest, representing strong opportunities for Australian businesses.
- Professional and financial services: The growth of Southeast Asia’s professional services sector reflects rising populations and economic strength, expanding professional services between Australia and ASEAN.
- Creative industries: The diversity and growing consumer bases in Australia and Southeast Asia’s creative industries support cultural exchange and people-to-people links, with potential for increased engagement.
