Australia Launches Investment Drive Into ASEAN

The BGA Australia Team, led by Managing Director Michael “Mick” McNeill, wrote an update to clients on Australia’s investment drive into ASEAN.

Context

• Australian Prime Minister Anthony Albanese announced at the March 4-6 special summit in Melbourne between his country and the Association of Southeast Asian Nations (ASEAN) three key initiatives that will catalyze greater Australian private sector investment in Southeast Asia:an investment financing facility, funding for infrastructure development and regional technology “landing pads” to provide on-the-ground support for Australian businesses.

• Four key themes animated the summit: trade and investment, climate and clean energy transition, maritime cooperation and emerging leadership. Albanese affirmed the Australian government’s commitment to ASEAN centrality and declared “Southeast Asia is where Australia’s destiny lies.” Australia’s two-way trade with ASEAN member states in 2022 exceeded AUD 178 billion (US$115.9 billion), surpassing Australia’s two-way trade with Japan and the United States. Still, Australia’s Southeast Asia economic strategy advocates for greater Australian investment in the region.

Significance

• Albanese announced initiatives that fulfill recommendations from “Invested: Australia’s Southeast Asia Economic Strategy to 2040,” which was launched last year. The strategy is a plan to build on regional trade agreements, including the recently upgraded ASEAN-Australia-New Zealand Free Trade Area and the Regional Comprehensive Economic Partnership.
• Details of the first business mission under the $19.2 million Australia-Southeast Asia Business Exchange were announced. Other initiatives include an AUD 2 billion ($1.3 billion) Southeast Asia Investment Financing Facility, AUD 140 million ($91.2 million) to extend the Partnerships for Infrastructure Program and AUD 222.5 million ($145.2 million) for the Mekong-Australia Partnership.

Implications

• Companies should look for opportunities to participate in the first mission to Singapore and Malaysia in April, which will focus on driving trade and investment in the clean energy transition.
• Australian businesses can expect on-the-ground support to boost technology services exports to Southeast Asian markets through regional technology “landing pads” in Jakarta and Ho Chi Minh City.

We will continue to keep you updated on developments in Australia as they occur. If you have any comments or questions, please contact BGA Australia Managing Director Michael “Mick” McNeill at mmcneill@bowergroupasia.com.

Best regards,

BGA Australia Team

Michael McNeill

Managing Director

Mick is a highly-experienced government relations expert and trusted advisor on consensus building, conflict resolution and legislative developments. He has played an integral role in helping parties achieve desired outcomes in areas of national security, health policy, foreign policy and reputational crisis management, as well as media relations, communications campaigns, immigration and human rights. Mick has two decades’ experience working with government as a media analyst, political adviser and NGO advocacy manager. After a stint serving as an adviser to an Australian senator, Mick took on the role of the locally engaged senior political specialist at the U.S. Embassy in ... Read More