Business Envoy - December 2023

Invested: Australia’s Southeast Asia Economic Strategy to 2040 Nicholas Moore AO

Since the September launch of his report Invested: Australia’s Southeast Asia Economic Strategy to 2040 , Special Envoy for Southeast Asia Nicholas Moore AO has continued advocacy to deepen two-way trade and investment links with Southeast Asia.

In 2022, Australia’s investment stocks in Southeast Asia represented only 3.4 per cent of Australia’s total investment overseas. In the past decade, Australia’s foreign direct investment in the region has stagnated, while some other countries have substantially increased their investment. The report examines 10 priority sectors that offer the most potential for growth: agriculture and food, resources, green energy transition, infrastructure, education and skills, visitor economy, healthcare, digital economy, professional and financial services, and creative industries. In total, the report presents 75 cross-cutting and sector-specific recommendations for government consideration. These will take time to assess and implement. Mr Moore undertook extensive consultations to inform his report. He met with more than 750 individuals across Southeast Asia and Australia; received around 200 written submissions through a public consultation process; and visited all ASEAN countries (except Myanmar).

This month he will visit Malaysia and Thailand to meet with key government and business leaders to discuss our shared growth prospects and opportunities ahead. At the report’s launch, Prime Minister Albanese described the report as a strategy for the most significant upgrade of Australia’s economic engagement with ASEAN for a generation. Favourable demographics, industrialisation, urbanisation and technological advances will transform Southeast Asia into an economic powerhouse in the coming decades. Australia is well- placed with the capabilities, goods, services and capital that can drive mutually beneficial and long-term growth. A key finding in the report was that there is more Australia can be doing on trade and investment with Southeast Asia. While Australia’s trade with the region has grown in nominal terms over the past 20 years, Southeast Asia’s share of Australia’s total trade has remained constant at around 14 per cent – this is despite the economic growth in the region over this period.

As an initial response to the recommendations, Prime Minister Albanese announced three initiatives to help Australia translate Southeast Asia’s potential into enduring growth. These go the heart of the report, and represent a first step to advance Australia’s ambition to significantly expand commercial links with the region.

Mr Moore identified four categories of required actions he considered necessary to realise the commercial potential between Australia and Southeast Asia: • raise awareness – to address a lack of knowledge of markets, sectors, and declining regional literacy in Australia • remove blockages – to address tariff and non-tariff barriers, including through mutual recognition of qualifications and standards harmonisation, managing risks and enhancing mobility • build capability – to ensure Australia and the region have the skills and capability to pursue opportunities and address economic challenges • deepen investment – to promote economic growth and prosperity. The report seeks to ensure Australia and Southeast Asia are jointly positioned to maximise the potential of our economic ties, from now until 2040, and beyond. The report is available at dfat.gov. au/southeastasiaeconomicstrategy

Investment deals teams Delivered jointly by the Department

Southeast Asia Business Exchange Program Led by Austrade to support increased two-way trade between Australia and Southeast Asia Includes targeted business missions to Southeast Asia in priority sectors, a Southeast Asia trade and investment promotion campaign in Australia and a survey of diaspora business interests in Australia to support new entrants into Southeast Asian markets

Placements and internships pilot program for young professionals Will help build enduring links between Australian and Southeast Asian businesses

of Foreign Affairs and Trade, Austrade and Export Finance Australia, will help increase Australian investment in Southeast Asia

In 2024, ASEAN and Australia will celebrate 50 years of partnership. To commemorate this milestone, a Special Commemorative Summit will be held in Melbourne in March 2024.

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business envoy

Department of Foreign Affairs and Trade

Department of Foreign Affairs and Trade

business envoy

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