New Colombo Plan (NCP)
Australia is entering a period of seismic economic and social change. Unprecedented digital connectivity is changing global markets and fragmenting supply chains. And the transformation of the Indo-Pacific region into an economic and social powerhouse is gathering pace.
Australia’s ability to compete in this changing global economy will require a workforce that is skilled and flexible, digitally literate and innovative, and able to work across cultures. Australia will benefit greatly from its strong relationships with other countries in the Indo-Pacific region, and a workforce with the ability to engage successfully with those countries.
Australia has recently concluded major free trade agreements in the region – China, Korea, and Japan – which account for over half of our total exports. Negotiations on the Trans-Pacific Partnership also concluded in October this year.
These FTAs follow the entry into force of a number of agreements over the past decade and a half, including the ASEAN-Australia-New Zealand FTA, and bilateral agreements with Malaysia, Singapore and Thailand. Australia is also negotiating the Regional Comprehensive Economic Partnership – a mega-regional FTA – as well as a bilateral Comprehensive Economic Partnership Agreement with Indonesia.
Australia’s FTAs have a significant impact in improving the competitive position of Australian businesses in the Indo-Pacific region opening new markets, lowering input costs and creating employment opportunities.
But to reap maximum the benefit from FTAs, businesses need not only to know how to use FTAs, but also to understand the local business environment. This requires people with knowledge and understanding of these countries.
Asia-capability has become a strategic business issue. According to the 2015 Australian International Business Survey, almost three quarters of companies found it hard to do business with key countries in our region – including India, Indonesia and China. For more than 40 per cent of these businesses, the key barrier was local language, culture and business practices.
Overcoming this barrier requires Australians to better understand the culture and customs, including business customs, of countries within our region. As former Indonesian President, Dr Susilo Bambang Yudhuyono, said in a recent visit to Perth: “tak kenal maka tak sayang”, “you can’t love those you don’t know.”
Australia’s ability to compete in this changing global economy will depend on developing a workforce with the knowledge and capabilities needed to succeed in the Indo-Pacific region. The New Colombo Plan is helping Australia rise to this challenge.
As a signature initiative of the Australian Government, the New Colombo Plan aims to lift knowledge of the Indo-Pacific by supporting Australian undergraduates to study and undertake internships in the region. It includes a prestigious Scholarships Program for study of up to one academic year and internships or mentorships of up to six months. It also includes a Mobility Program, which provides grants to universities for their undergraduates to undertake both short and longer term study, internships, mentorships, practicums and research.
The New Colombo Plan is not simply an education program or a life-changing experience for a young Australian. The New Colombo Plan seeks to create a new generation of young Australians who can operate effectively in the region as valuable employees for Australian, multinational and regionally-based companies.
By the end of 2016, the Australian Government will have supported more than 10,000 students to study and work in the Indo-Pacific under the New Colombo Plan. Feedback from students supported by the program to date has been very positive. As New Colombo Scholar Jake Schatz put it:
“My 5-month internship with QBE has unlocked career opportunities that I didn’t even know existed. I’ve worked in the regional headquarters and enjoyed unparalleled access to senior leaders – giving me an avenue to solicit support for my ideas. I’ve been exposed to an exciting industry that I now want to pursue a career in, and I am leaving Hong Kong connected to a wide-reaching business network inside the region’s business hub and across the broader Indo-Pacific. For an ex-miner from Bendigo who only got his passport in 2013, and is 5-months into his corporate career, this all feels pretty special.”
Jake Schatz, La Trobe University with David Fried, CEO Emerging Markets QBE Insurance Group and NCP Business Champion
To develop an Australian workforce capable of succeeding in the Indo-Pacific region, business support for student mobility is critical. The response from business to date has been enthusiastic; 140 companies have already registered to host talented New Colombo Plan students as interns in the region. More businesses are encouraged to participate by offering internships to Australian undergraduates in the Indo-Pacific region.
By offering internships and mentorships, businesses benefit from the skills of talented young Australians, they help develop graduates with the skills and experience we need to do business in the Indo-Pacific and they support Australia’s engagement with our neighbours.
For more information, visit the NCP Internship and Mentorship Website or email ncp.business@dfat.gov.au. Follow on Twitter at @NewColomboPlan.
Asialink Business, with the support of the Myer Foundation and the Bennelong Foundation are developing and delivering the Bennelong NCP Pre-Departure Training. This innovative cross-cultural training helps arm New Colombo Plan students with the awareness and sensibility needed to effectively engage across cultures, derive maximum benefit from their experiences in the region, and be positive ambassadors for Australia.
By New Colombo Plan Secretariat