Message from the CEO
Resetting Australia’s business engagement with Asia
16 June 2022: The election of the new Albanese government provides an opportunity to reset and refresh many of our economic relationships in the region. It is notable that in the Prime Minister’s recent visit to Indonesia he was accompanied by a high-level business delegation including the CEOs of Telstra, Wesfarmers, Commonwealth Bank, and BlueScope among others.
Whilst it is a critical point in Australia’s trade and investment engagement with Asia, it should also be viewed as a time for optimism. Despite the foundational causes, the move towards economic diversification across Asia provides for a healthy rebalancing of Australia’s trade relationships. It’s also going to require expanded knowledge of a variety of markets and increased effort to develop the skills and capabilities to be successful.
Great diversity exists between individual countries, and this will require more work and investment by business to achieve outcomes compared to the convenient trade which characterised much of our export history to an insatiable China.
Australia and ASEAN in Focus
In May I presented at the opening panel of the Australia-ASEAN Business Forum on ‘Australia in the ASEAN Economic Community’ alongside fellow panellists, H.E. Nguyen Tat Thanh, Ambassador of Vietnam, Ms. Christine Holgate, CEO of Toll Global Express, and Mr. Fraser Thompson, Co-Founder of Sun Cable.
At a government level, Australia is a leading partner in the ASEAN Economic Community. This is reflected in Australia’s long-standing and deep engagement with ASEAN economic programs - a key plank in Australia becoming ASEAN’s first Dialogue Partner in 1974 and its first Comprehensive Strategic Partner in 2021.
It’s also reflected by our quality trade architecture; the Australia New Zealand Free Trade Area (AANZFTA) has been a benchmark agreement for ASEAN, and many will tell you that the experience of AANZFTA created the ambition for, and capacity to deliver, Regional Comprehensive Economic Partnership (RCEP) - the largest free trade agreement globally.
ASEAN stands as one of our top-tier trading partners, and there’s more two-way trade between Australia and ASEAN than with the European Union or the US. However, the missing piece in economic relations is investment – in both directions but crucially for us, long-term Australian investment in this demographically young and dynamic region. Cautious Australian investors – with funds burning holes in their pockets – are still very reluctant to pursue opportunities in Southeast Asia.
As Australia’s interest in trade diversification continues, ASEAN will rise to greater prominence as a trading partner. For Australian businesses, ASEAN offers several opportunities: urbanisation, digital disruption, clean energy transition, booming consumer class, and demand for global-standard education. However, many other countries also realise the opportunity that ASEAN presents and have prioritised their economic and investment engagement strategies.
Increasing the level of Asia capability in the Australian workforce provides businesses and their people with the skills and confidence to pursue opportunities in the region. Asialink Business recently completed two programs focused on Southeast Asian countries, namely Fintech in Vietnam and eCommerce in Indonesia. Both programs provided participants with access to leading industry experts and the confidence to explore the changing consumer landscape, evolving digital economies and to leverage and seize opportunities.
Building Asia-Capabilities is now more important than ever
Now in its 27th year, the Asialink Leaders Program develops Asia-capability in both emerging and established leaders from across Australia. This year’s intake includes 50 talented professionals, from a wide range of sectors across Australia and internationally.
Participants welcomed the opportunity of coming together both in-person and via our new Virtual Hub, to network and delve into some of the most complex issues facing our region today. Importantly, the Virtual Hub now provides a dedicated offering for Leaders from regional Australia and across Asia to join the program.
We sincerely thank our program partner Herbert Smith Freehills for their support and hosting of Foundation Week activities. We would also like to extend our gratitude to our participants and speakers, who made the week so memorable.