Australia-Asean trade ties set for turning point: ‘now, there’s a different appetite’

Businesses rushing to find alternative manufacturing hubs outside China and maturing of Asean economies could change Australian mindsets, former trade chief Andrew Robb says

Entrepreneurs call for more exchanges, business matching and government support in Australia’s pursuit of more economic opportunities in Asia

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Shipping containers at the Port of Brisbane in Australia. Photo: Bloomberg

Published: 2:00pm, 25 Jun 2023Updated: 4:26pm, 26 Jun 2023

Australia’s economic ties with Southeast Asia have been mixed due to challenges in expanding business there, but observers say the relationship could be headed for a turning point as Canberra intensifies its interests in the region amid softer relations with China.

“Australian institutions – big and small – are increasingly convinced that Asean is on its way to the first world. Primarily, Asean is opening up to the world,” said Australia’s former trade minister Andrew Robb, among those who have pushed for more engagement with Southeast Asia.

Robb raised the importance of Australians doing business with Southeast Asia when he was in office between 2013 and 2016.

While events such as the Asian financial crisis had contributed to the risks of investing in the region, Robb said the culmination of businesses rushing to find alternative manufacturing hubs outside China and the maturing of economies in the Association of Southeast Asian Nations could now change Australian appetites.

“Once they had a swag of tariffs on trade, they had a bureaucracy that was impossible to get through, governments that were suspicious. Businesspeople … had alternatives. China turned up,” he said. “Back in 2015, 2016, we were laying the foundations … now, there’s a different appetite.”

Trucks at a textile sales hub in Jakarta. Indonesia did not attract any direct investments from Australia between 2018 and 2022, according to a recent report by the Australian Bureau of Statistics. Photo: AFP

It is easier to export to Asia, but setting up shop in Southeast Asia or expanding in Asia remain challenging, entrepreneurs tell This Week in Asia. Common hurdles for entrepreneurs include finding the right local connectors or partners and access to skilled labour.