Australia is establishing a A$2 billion ($1.3 billion) investment financing facility to boost investment in Southeast Asia (SEA) as part of several economic initiatives announced at this week's Asean-Australia Special Summit to commemorate 50 years of dialogue in Melbourne.
The initiatives include recommendations from Invested: Australia's Southeast Asia Economic Strategy to 2040, launched last year by Australian prime minister Anthony Albanese to deepen Australia's economic engagement with SEA, according to a media release from the Australian government.
Addressing 100 Australian and SEA CEOs at a summit on March 5, Albanese unveiled the initiatives, which included a A$2 billion fund called the Southeast Asia Investment Financing Facility (SEAIFF) to be managed by Export Finance Australia. The SEAIFF will provide loans, guarantees, equity and insurance for projects that are designed to boost Australian trade and investment in SEA, particularly in support of the region's clean energy transition and infrastructure development, the statement said.
A$140 million has been allocated over four years to extend the Partnerships for Infrastructure Program. The Program is designed to support efforts to improve regional infrastructure development and attract more diverse and quality infrastructure finance. The program has been running since 2021 and has assisted partners to accelerate transport connectivity, the clean energy transition and telecommunications reforms.
Australia has also appointed 10 ‘business champions’ to facilitate greater commercial links between Australia and the economies of Asean. The champions are senior Australian business leaders. According to The Australian, Macquarie’s group CEO Shemera Wikramanayake is one of the champions and has been tasked with opening up opportunities with the Philippines, while ANZ's chief executive Shayne Elliott has been given responsibility for Singapore.
Landing Pads
Another initiative is the launch of regional technology 'Landing Pads' in Jakarta (Indonesia) and in Ho Chi Minh City (Vietnam). The new Landing Pads will provide on-the-ground support for Australian businesses to boost technology services exports to SEA markets, following the establishment of the initial 'Landing Pad' in Singapore in 2017.
Business visitor visas to those from SEA will be extended from three to five years. The 10-year Frequent Traveller stream will be extended to eligible Asean member states and Timor-Leste.
Albanese said: "Australia's economic future lies in our region. I’m proud to lead a government that is strengthening our trade and investment ties with SEA, directly contributing to our shared economic prosperity. These initiatives represent further investments in our future and ensure we are working with SEA as it continues to grow in economic size and reach.”
He added: “When our region prospers, Australia prospers. Our work internationally is delivering for Australians – for jobs, for our economy and for our people."
Australia's two-way investment with Asean was worth A$307 billion in 2022. Two-way trade with Asean accounted for A$178 billion in 2022, accounting for 15% of Australia's trade, which is greater than its trade with Japan or the US.
Singapore prime minister He Lee Hsien Loong, who is visting Australia, said: "I welcome efforts by prime minister Albanese and his government to deepen ties with SEA Asia, including through its SEA Economic Strategy [to] 2040. Singapore has long supported Australia strengthening its links with SE Asia and will always continue to do so. Our bilateral relations continue to flourish amidst the global uncertainty and the economic headwinds."
