Open skies, scholarships and less red tape: Albanese pushes new economic growth strategy in Asia

Cutting business red tape, boosting scholarships, and freeing up the aviation sector are among the changes flagged in a Southeast Asian trade strategy to be unveiled by Prime Minister Anthony Albanese in Jakarta.

Albanese arrived in the Indonesian capital on Tuesday night to begin a series of meetings and summits across countries.

Australia’s Southeast Asia Economic Strategy to 2040 sets out ways to expand ties with the fastest-growing economies in the region.

It outlines 75 recommendations for the government to consider to grow partnerships with Southeast Asian nations.

They include harmonising regulations, two-way tertiary scholarships to address skills shortages, new standards for low-energy goods and “open skies” agreements to free up the aviation sector.

The strategy also calls for further efforts to remove trade blockages, including establishing an all-in-one service for further foreign investment.

Extending partnerships for infrastructure with the region, with a mix of public and private-sector funds, is part of the plan.

In 2022, Australia’s two-way trade with ASEAN nations was about $178 billion — greater than the two-way trade with Japan, the United States or the European Union.

Southeast Asia special envoy Nicholas Moore, who developed the strategy, has identified 10 priority sectors for Australia including agriculture and food, resources, infrastructure, energy and education.

Albanese said the strategy would aim to take advantage of the expanding economies in the region, after underinvestment in the area in previous years.

“Southeast Asia’s fast-growing economies present a major opportunity for Australian business, but we haven’t kept pace with their exponential growth,” he said

“Our economic future lies with Southeast Asia.

“This strategy outlines how we can harness this growth, and seize the vast trade and investment opportunities our region presents.”

Moore said Southeast Asia represented a lot of opportunities for Australia.

“Australia’s direct investment into Southeast Asia has stagnated in recent years, while overall direct investment into the region from other countries has increased materially,” he said in the strategy.

“We have the potential to be a substantial investor due to our well-capitalised corporate sector, our deep and sophisticated capital markets, and our substantial national savings pool.”

Foreign Minister Penny Wong said deeper engagement in the region would make Australia more influential in the global economy.

“Investing in priority sectors such as the green energy transition, infrastructure and food security is an investment in Australia’s future and the future of the region,” she said.

The prime minister will hold talks with Indo-Pacific leaders in Jakarta in the next two days at the ASEAN summit, before heading to the Philippines and then India for the G20 summit.

This article was first published by AAP.