Australia Shifts From Strategy To Action As Business Interest In ASEAN Surges
By Harizah Hanim Mohamed
KUALA LUMPUR, Oct 25 (Bernama) -- The continuous engagement between ASEAN member states and Australia has spurred a significant shift in sentiment among the business community Down Under, with 61 per cent of businesses planning expansion into the region.
Australia-ASEAN Chamber of Commerce (AustCham) and Malaysia Australia Business Council (MABC) chairman Caesar Loong said the Australia Business in Southeast Asia Survey 2025 indicated that 70 per cent of respondents are likely to establish operations within ASEAN within five years.
“I think there appears to be renewed momentum for trade and cooperation since that meeting and the recent visit of the Australian Trade Minister to Malaysia and other ASEAN countries shows commitment to this strategy with ASEAN by Australia,” he told Bernama.
Loong elaborated that these responses represented a positive change and a significant pipeline of investments waiting to be realised.
Commenting on Malaysia's role as ASEAN Chair for this year, he said the country should leverage its long-standing ties with Australia through language, education, and a shared colonial heritage that could be used for mutual advantage.
“We should leverage these advantages by encouraging more business visits and by demonstrating that we are multicultural and able to offer an easy introduction to the region,” he said.
He suggested that Malaysia could be the “one-stop” hub for connecting Australian businesses with investment and trade opportunities in the region through identifying complementarity and nexus with other ASEAN countries and offering seamless connections.
“We should also take the initiative to promote uniformity of regulations affecting investment and trade within ASEAN," he said.
Malaysia Global Business Forum founding chairman Nordin Abdullah said Australia-ASEAN economic and business linkages have shown some progress since the ASEAN-Australia Special Summit last year.
“We’ve seen tangible steps toward greater connectivity and cooperation in clean energy, infrastructure development, and digital trade.
“In particular, the Australia for ASEAN (Aus4ASEAN) Futures initiative has catalysed collaborative projects across these priority areas,” he added.
Nordin emphasised that the clear and present danger to the digital economy is the ongoing attacks from threat actors on digital assets and critical infrastructure, calling for this issue to be given the highest priority moving forward.
“Malaysia's ASEAN chairmanship presents a timely opportunity to push for pragmatic, action-oriented outcomes that benefit businesses at all levels, particularly small and medium enterprises (SMEs) which are the backbone of Southeast Asia’s economy.
“The challenge will be keeping SMEs above water in challenging times while bringing them up to speed when it comes to increased levels of governance and compliance,” he said.
He went on to say Australia has the resources and the knowledge base to contribute to this phase of development across ASEAN.
Asked about the declining share of Australia’s investment in Southeast Asia, Nordin said the nature of business has changed, so too has the nature of much investment.
“Large-scale infrastructure is not going to be the focus, but smaller, digitally driven, lifestyle-focused, and human-centric investments will be the next wave,” he predicted.
He further said that while these businesses are smaller in dollar value, they are higher in volume and have better margins.
“Plugging into this trend will make proximity a premium. A state like Western Australia (WA) has a natural advantage, with a huge percentage of its population tracing their roots to Southeast Asia,” he said.
Meanwhile, Australia's Science and Innovation Minister Stephen Dawson is leading a mission to Malaysia and Singapore from today until Nov 1 to bolster Western Australia's profile and support business expansion into key ASEAN markets.
Marking the state's first ministerial visit to Malaysia since 2019, the mission will focus on strengthening regional partnerships and promoting WA’s energy, science, and innovation capabilities.
This strategic effort will include the official opening of the Invest and Trade WA Kuala Lumpur office and leading the state’s attendance at three major international events: the ASEAN Business and Investment Summit in Kuala Lumpur, Singapore International Energy Week, and the Singapore Week of Innovation and Technology.
Australia became ASEAN's first Dialogue Partner in 1974 and a Comprehensive Strategic Partner in 2021, and implemented the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) in 2010.
At the ASEAN-Australia Special Summit held in Melbourne in March last year, leaders adopted the ASEAN-Australia Joint Leaders’ Vision Statement and the Melbourne Declaration, outlining a 50-year partnership to foster an open, inclusive, and transparent region with ASEAN at its core.
Australia has pledged to strengthen two-way trade and investment with ASEAN to create jobs and boost economic growth across the region.
As co-chairman of the ASEAN-Australia Special Summit, Australian Prime Minister Anthony Albanese announced initiatives to implement key recommendations from ‘Invested: Southeast Asia Economic Strategy to 2040,’ a blueprint for Australia’s long-term economic engagement with the region.
These include a A$2 billion Southeast Asia Investment Financing Facility to catalyse Australian investment in critical sectors such as infrastructure and clean energy. (A$1 = RM2.74).
Australia also extended its Partnerships for Infrastructure initiative to support regional infrastructure development and attract more diverse, high-quality financing, reinforcing its commitment to strengthening economic ties and fostering sustainable growth in ASEAN.
-- BERNAMA
