Australia is stepping up its engagement with South-East Asia, one of the fastest-growing and most dynamic regions in the world. On Tuesday, Prime Minister Anthony Albanese will announce a $2 billion fund to support Australian trade and investment in the region, especially in clean energy and infrastructure projects.
The fund, called the South-East Asia Investment Financing Facility, will be managed by Export Finance Australia, the government’s export credit agency. It will provide loans, guarantees and equity investments to Australian businesses and partners who want to participate in the development of South-East Asia.
The fund is based on a recommendation from Nicholas Moore, the government’s special adviser on South-East Asian economic cooperation. Moore argued that Australia needs to increase its strategic presence and influence in the region, not only for its own economic benefit, but also to support regional stability and security.
The fund is similar to the Australian Infrastructure Financing Facility for the Pacific, which was launched by the Morrison government in 2018. That facility has provided $1 billion in grants and $3 billion in loans to support infrastructure projects in Pacific island countries, such as roads, ports, telecommunications and renewable energy.
The new fund for South-East Asia will focus on projects that align with Australia’s values and interests, such as low-emissions technologies, digital connectivity, health security and gender equality. It will also complement existing initiatives, such as the ASEAN-Australia Smart Cities Network and the Mekong-Australia Partnership.
Mr Albanese will unveil the fund at a major lunch on Wednesday, attended by CEOs from Australia and South-East Asia, as part of the Australia-ASEAN summit in Melbourne. The summit marks the 50th anniversary of diplomatic relations between Australia and ASEAN, the Association of Southeast Asian Nations.
The summit will also feature discussions on regional issues, such as COVID-19 recovery, trade liberalisation, counter-terrorism and maritime security. Mr Albanese will meet with several ASEAN leaders, including Vietnam’s Prime Minister Pham Minh Chinh, who is visiting Australia for the first time.
Mr Albanese will say that the fund is a concrete example of how Australia can contribute to South-East Asia’s growth and prosperity. He will also say that Australia is an “exporter of knowledge”, with expertise and experience that can help solve the region’s challenges and opportunities.
