ASEAN: Australia Commits $2 Billion to Support Investment in Southeast Asia

A special two-day summit celebrating 50 years of partnership between Australia and the Association of Southeast Asian Nations (ASEAN) began in Melbourne on Tuesday, March 5. Australian Prime Minister Anthony Albanese and ASEAN leaders discussed strengthening cooperation and the future of the region, focusing on the Australian Economic Strategy for Southeast Asia launched by the Canberra government in September 2023. Participants analyze the prospects and possible risks associated with China’s growing influence in the region.

The ASEAN group currently includes Brunei, Cambodia, the Philippines, Indonesia, Laos, Malaysia, Myanmar, Singapore, Thailand, and Vietnam, while East Timor has observer status awaiting membership, approved by member states “in accordance with the principles” as early as the end of 2022.

On Wednesday, the summit will discuss economic cooperation, focusing on issues related to environmental protection and the energy transition. Prime Minister Albanese has announced the creation of a $2 billion special financial instrument that will be used to support investment by Australian companies in Southeast Asian countries. In addition, the Australian Prime Minister announced $140 million between 2024 and 2027 to support a program called the ASEAN Infrastructure Partnership. Finally, Australia promised to “simplify and streamline” bureaucratic procedures to encourage economic and trade exchanges with ASEAN countries. As Albanese noted, “in 2022, the investment flow between Australia and ASEAN was $307 billion,” and trade exchange reached 178 billion, which corresponds to 15% of Australia’s total trade with overseas countries.