ASEAN Must Leverage Australia To Boost Economic Resilience – MGBF

By Harizah Hanim Mohamed

KUALA LUMPUR, March 8 (Bernama) -- 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.

“A complementary strategy that considers the disruptive actions of major global powers means that smaller economies must not only survive but thrive despite ever-evolving crises across the waves. Australia, as another middle power, is the right partner for this endeavour,” he told Bernama in an interview.  

Nordin highlighted Malaysia’s strategic position as a prime investment destination, particularly for companies looking to establish high-value production facilities. With access to the Pacific and Indian Oceans and overland connections to mainland Asia and Europe, the country is well-placed to support resilient supply chains.

“This will be important for companies looking to ensure resilient supply chains for critical components or finished products,” he said.  

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He also noted a decline in Australian foreign direct investment (FDI) in Southeast Asia, which fell to 2.9 per cent in 2022 from 6.3 per cent in 2017, warning that this trend could weaken regional economic stability.

"It is a matter of strategic interest as global competitors look to establish supply chains and profit centres in the region,” he added.  

Historically, ASEAN and Australia have built 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. 

“Australia has gotten in early and in a meaningful way, with framework agreements that set the stage for future-facing collaborations,” he added.  

Meanwhile, Nordin emphasised that ASEAN must prioritise poverty eradication in its economic agenda by aligning policies to ensure the region remains a viable investment destination, absorbs future shocks, and secures long-term growth.

“Energy security coupled with food security are paramount areas to be addressed if this is to become a reality,” he said.  

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 pledged to strengthen 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 include a A$2 billion Southeast Asia Investment Financing Facility to catalyse Australian investment in critical sectors such as infrastructure and clean energy. (A$1 = RM2.78).

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.

-- BERNAMA