Australia is aiming to ramp up its engagement with Southeast Asia in the face of rising trade and geopolitical uncertainties, and growing concerns over China’s slowing economy.

Prime Minister Anthony Albanese told leaders at the Association of Southeast Asian Nations (Asean) forum on Wednesday that his nation’s engagement with the region had “not kept pace with the growth of Southeast Asian economies”.

Albanese announced A$95 million (US$60 million or RM283.45 million) to boost economic ties with Southeast Asia, including A$70 million over four years to create specialist teams to strike up investment deals between Australia and the region.

“Australia should be a larger trade and investment partner,” the prime minister said. “The ambitious plan we are sharing today takes us beyond catching up. It positions us for what’s ahead.”

According to a new government strategy paper, Southeast Asia’s economic success “is critical for Australia’s prosperity and security”.

Among recommendations in the Southeast Asia Economic Strategy are the creation of a whole-of-nation approach to tap into the region’s economic growth, a relaxation of foreign investment restrictions and greater Australian infrastructure investment.

Since Albanese’s centre-left Labor party came to power in May 2022, Australia has moved to rebalance its diplomacy away from the tight US alignment of its predecessors. In a speech at the Shangri-La Dialogue in June, the Australian leader said it was the responsibility of both the US and China to avoid a spiral into armed conflict.

Despite its close proximity, Australia’s trade with Southeast Asia is “very underweight”, according to a government official who asked not to be identified as they’re not authorised to speak with the media. Investment has “stagnated” in recent years in the face of surging interest from competitors, such as China, the official said.

At the same time, trade sanctions imposed on Australian exports by Beijing in 2020 have driven Canberra to try to diversify away from China. Trade between Australia and Asean countries totalled more than A$127 billion in 2021, making the bloc a significant export market. 

After the Asean summit, Albanese will fly to the Philippines for the first official visit by an Australian leader in 20 years. 

  - Bloomberg