The BGA Australia team, led by Managing Director Michael “Mick” McNeill, wrote an update to clients on Australia’s new investment strategy for Southeast Asia.

Context

  • Australian Prime Minister Anthony Albanese on September 6 launched Australia’s economic and investment strategy for Southeast Asia, “Invested: Australia’s Southeast Asia Economic Strategy to 2040,” at the Association of Southeast Asian Nations (ASEAN) Summit in Jakarta. Upon the strategy’s release, Albanese said the “centrality of ASEAN is vital to Australia’s future” and that the strategy represented “the most significant upgrade of Australia’s economic engagement with ASEAN for a generation.”
  • The government intends to diversify economic ties despite the recent easing of trade tensions between Australia and China. The strategy’s release comes amid low economic engagement between Australia and Southeast Asia, especially considering their geographic proximity and people-to-people connections.

Significance

  • The new strategy seeks to shift Australia’s economic and investment trends in the region, as ASEAN is predicted to become the world’s fourth-largest economy by 2040. The strategy identifies 10 priority sectors offering the most potential for growth: agriculture and food, resources, green energy transition, infrastructure, education and skills, visitor economy, health care, digital economy, professional and financial services and creative industries.
  • Albanese confirmed that Australia will host a special ASEAN Australia Summit from March 4-6, 2024, in Melbourne. He has written to every ASEAN leader to invite them to attend.

Implications

  • Businesses should note the Australian government’s emphasis on public-private partnership in Southeast Asia’s infrastructure development. The government seeks opportunities for private sector financing and sees demand for Australia’s business resources, knowledge and skilled mobility.
  • AUD 95.4 million (US$60.3 million) will support three initiatives: a new deals team to identify opportunities for Australian investors, a new Southeast Asia Business Exchange Program and an exchange program for young professionals to work in Australia and for Southeast Asian companies.

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

Best regards,

BGA Australia Team

A small ginko leaf

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