Australian Prime Minister Anthony Albanese. (Photo: VNA) Tyler said Australian Prime MinisterAnthony Albanese has released the country's Southeast Asia Economic Strategy to2040, which sets a more active government role in promoting trade andinvestment links.
“While Australia is using all elements of statecraftto build strong defence, diplomacy and development relationships with a crucialregion, there’s a gap where economic activity should be. This strategy aims toredress that,” the article read.
Despite the region's 687 million people and expanding middleclass, Australia’s level of economic engagement with Southeast Asia hasremained stubbornly low, the author pointed out.
She cited statistics showing Australia’s directinvestment in New Zealand is more than in the whole of dynamic Southeast Asia.
“The region as a whole is forecast to average growthof 4% to 2040. This means it will become the world’s fourth-largest economy by2040, after the United States, China and India,” she noted.
Australian governments have actually been trying fora long time to get Australian businesses interested in Southeast Asia, shesaid, adding that there has been a trade agreement in place with ASEAN since2010, which was recently upgraded.
However, in recent years, Australia’s investment inSoutheast Asia has been going down rather than up, against global trends.
“Given greater economic engagement is not happeningnaturally, the new strategy sets out a much more active role for government inhelping companies diversify into Southeast Asia,” the article noted, adding thestrategy is not only exhorting Australian businesses to do better, but also sets outways government can actively remove blockages and lessen risks.
“The strategy sees a role for government inproviding seed funding. For example, working with industry to fund a SoutheastAsia research grants scheme and establishing a targeted program to supportAustralian First Nations businesses to increase trade and investment with theregion,” Tyler continued.
In the important area of infrastructure – whereSoutheast Asia will require an estimated 3 trillion USD in investment to 2040 –it suggests Australia can play a role in early-stage project preparation.
To give a sense of the untapped potential, currentlyonly 250 exporters make up 90% of Australia’s merchandise exports to SoutheastAsia. There is a lot of room for other companies to get involved.
“Australia will gain strategic benefits fromstronger economic engagement with Southeast Asia. Imagine the change inrelations if Australia became a key partner in the region’s green economytransition or in building much-needed infrastructure. This would transform theway the region and Australia view each other,” article concluded./.
VNA
