Kuala Lumpur: The Association of Southeast Asian Nations (ASEAN) must develop a parallel strategy by engaging major economies beyond the region, particularly Australia, to enhance production, productivity, and domestic consumption, Malaysia Global Business Forum (MGBF) founding chairman Nordin Abdullah said. He stressed that this approach is crucial for strengthening the region’s resilience against future shocks, including abrupt policy shifts in key markets such as the United States and the European Union.
According to BERNAMA News Agency, Nordin emphasized the importance of a complementary strategy that considers the disruptive actions of major global powers, suggesting that smaller economies must not only survive but thrive despite ever-evolving crises. He identified Australia as a key partner in this endeavour, describing it as another middle power suitable for collaboration. Nordin further highlighted Malaysia’s strategic position as a prime investment destination, particularly for companies aiming to establish high-value production facilities, given its advantageous access to the Pacific and Indian Oceans and overland connections to mainland Asia and Europe.
Nordin also noted a significant decline in Australian foreign direct investment (FDI) in Southeast Asia, which dropped to 2.9 percent in 2022 from 6.3 percent in 2017. He warned that this trend could undermine regional economic stability, emphasizing the strategic interest for global competitors looking to establish supply chains and profit centres in the region.
Historically, ASEAN and Australia have maintained strong ties based on shared interests, trust, and diplomatic cooperation. Australia became ASEAN’s first Dialogue Partner in 1974, a Comprehensive Strategic Partner in 2021, and implemented the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) in 2010. Nordin remarked that Australia has engaged in meaningful collaborations with ASEAN through framework agreements that pave the way for future partnerships.
Moreover, Nordin underscored the need for ASEAN to prioritize poverty eradication in its economic agenda by aligning policies to maintain the region as a viable investment destination, absorb future shocks, and secure long-term growth. He highlighted energy and food security as paramount areas to address to achieve these goals.
During the ASEAN-Australia Special Summit 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 committed to strengthening 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 initiatives include a A$2 billion Southeast Asia Investment Financing Facility to catalyse Australian investment in critical sectors such as infrastructure and clean energy. 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.