I acknowledge that we are on Gadigal land and pay my respects to their elders past, present, and emerging.
I also acknowledge David Brat, Ambassador of the United States to Australia, Heather Ridout, Australia’s Consul General in New York, and Mark Woodruff, CEO of Citi Australia.
Thanks for the chance to speak to you today.
Much is said of the time we find ourselves in, the place we find ourselves in.
For Australia, that’s firmly in the Indo-Pacific, at a time of great contestation, and change.
Economically, we are facing perhaps the most challenging, and uncertain global trade and investment environment since the end of the Second World War.
Indeed, the global economy is now under immense strain from a range of forces.
The post-war consensus of economic interdependence and free trade being good for nations’ growth and development is at risk.
Rules have not kept pace with recent developments, with widespread use of industrial subsidies and tech competition reshaping trade and investment.
Relationships are fraying due to geopolitical competition and armed conflict.
And the way we think about resilience in our economies is changing as economic security becomes increasingly central to national security.
The global trading system, which for seventy years had custodianship of free and fair trade, is no longer bringing us closer together in the way it used to.
This makes it all the more difficult to manage economic shocks, and disruptions including the recurrent closures of the Strait of Hormuz make this clear.
Events in one region now reverberate across the world.
Conflict disrupts maritime trade and supply chains, strains energy and food supplies, and compounds cost of living pressures, displacement and climate challenges.
Amidst this uncertainty, Australia’s objective is clear: we want an Indo-Pacific region that is peaceful, stable and prosperous, where sovereignty is respected, countries are free to make their own choices, and disputes are resolved peacefully in accordance with international law, not through fear or coercion.
Our approach is grounded on four priorities: a region that is peaceful, secure and prosperous; strong relationships built on trust, respect and practical partnership; rules that protect sovereignty and, provide predictability and certainty for our businesses; and greater resilience to economic, security and technological shocks.
With this approach Australia can manage risks but also seize the enormous opportunities in our region.
Home to the world’s most dynamic economic expansion and social advancement.
Home to more than half of the world’s population and about two-thirds of global economic growth.
And looking to Southeast Asia in particular where growth is forecast to continue at around 4 per cent annually to 2040, the region is set to become the world’s fourth largest economy by the end of 2040.
To put that sort of potential into a tangible example, even based on present figures, the combined GDP of the Southeast Asian region is larger than the economies of France, Canada, or the UK and about twice the size of our economy here in Australia.
Demographics too, are favourable.
Fifty-five per cent of the region is under the age of 35, most of them highly educated, most of them digitally savvy and connected to digital infrastructure, and most too searching for opportunities in education, healthcare, premium products, travel, and other services.
And just as our post-war economy benefited from being linked to rapid economic growth in our region.
Including in Japan, in Korea, China and across Southeast Asia.
So too will our future prosperity be tied to our region’s continued development, as long as we use our capabilities to work with Southeast Asia to meet its needs in goods, services, skills, and capital.
So as you can see: we’re walking something of a tightrope, between our biggest opportunities, and our biggest risks.
Our future is tied to our region, and our region’s security, stability, and prosperity.
To make this happen, we need to deepen our cooperation, our engagement, and our partnerships as what I like to call a 'trusted neighbour'.
Because we may be a neighbour to our region as a matter of geography.
But we know even from our own lives, simply living next door to someone, or being on the same street, isn’t enough to let them to watch the kids for a night or to water the plants when you’re away.
Trust needs to be earned.
Regular cups of tea, chats over the fence, lending tools, grabbing the mail, helping with the heavy lifting.
And in diplomatic terms, we’re putting in the work too, across the full suite of our strategic and economic policy to show our commitment, as a reliable, trustworthy neighbour.
Let’s look at the strategic side of things first, our bilateral relationships, our multilateral partnerships, and how expanding these build trust, how deepening them keeps stability, and peace.
One step was stabilising our relationship with China and securing agreement to lift all trade impediments that it had placed on around $20 billion of Australian exports.
Another is deepening our bilateral partnerships in the region, formally upgrading our diplomatic relationships with India, Japan, South Korea, Singapore, the Philippines, Brunei, and Vietnam.
And our landmark Jakarta Treaty, signed earlier this year, strengthening our security and economic engagement with Indonesia.
In fact the largest overseas training activity for the ADF this year was Exercise Keris Woomera, held with Indonesia in East Java last week, with more than two thousand personnel from both countries taking part.
We’re also working to protect the rules-based order and regional multilateralism.
We were ASEAN’s first dialogue partner, a badge of history which we still wear today with pride.
But we back it with action, with continued support for ASEAN through our $50.3 million contribution to the Regional Trade for Development initiative.
It helps ASEAN countries access the full benefits of the ASEAN-Australia-New Zealand FTA and the Regional Comprehensive Economic Partnership.
As a reliable partner, we continue to support ASEAN Centrality.
Our Aus4ASEAN Futures Initiative (2022–2032) is helping to deliver ASEAN-led projects through ASEAN systems.
APEC too, continues to play an important role, bringing together the major economies of our region, including Australia – and I acknowledge China’s leadership as Chair this year.
And we continue to welcome interest from economies in joining our regional trade agreements – the CPTPP and RCEP – while also making sure they remain fit for purpose.
The second piece of work we’re doing relates to the opportunity I discussed, making sure our people, our businesses are ready to take advantage of it.
On the trade and investment side, this means more trade, not less, and work to expand our network of free trade agreements globally and help for our businesses to take advantage of them.
And if we look to our region in particular, you may of course be familiar with our Invested strategy, which seeks to grow economic linkages between Australia and Southeast Asia – creating shared wealth more diversified supply chains, and long-term economic resilience.
Our Australian Government Deal teams have already supported $4.3 billion worth of committed investment across multiple markets since the launch of the strategy three years ago.
We’ve still space to grow though, investment in the region is underweight, relative to its potential, and relative to investment by others – which places the region second only to China in its share of global FDI.
So we’re working with our institutional investors and corporates to help, to recruit the right talent, to understand the local context, to understand and mitigate the risks and open up opportunities, in sectors like green energy, infrastructure, agrifood, and healthcare.
Future proofing these opportunities by making sure we have the capabilities to work in our region with savvy, work-ready Australians with Asian-literacy and experience.
We want more young people to learn an Asian language and to gain the cross-cultural skills and awareness critical to Indo-Pacific engagement, and partnership.
In May we announced $2.5 million to support Asian Language learning through the Community Language Schools Grants Program.
And for our closest neighbour – Indonesia, to help implement the Jakarta Treaty, the Australia-Indonesia Institute will receive $11.4 million to expand its cultural exchange and grants programs over 4 years.
Complementing the New Colombo Plan where over 300 young people every year undertake learning, and internships, in Cambodia, China, India, Indonesia, Japan, Malaysia, Thailand, and the Philippines – to name just a few!
And because education, and engagement is a two-way street we will continue to welcome students from our region to Australia with no changes to the visa rules for applicants from ASEAN, or the Pacific.
So as you can see, we’re having a moment. And we’re doing what we can to meet it.
We have an interest in the future of our region – that it is peaceful, that it is stable, where no country dominates, where no country is dominated.
So too do we have a stake in our region’s prosperity as a precondition of our own and we’re backing this, with support for our businesses and our investors, our students, and our young people, to turn the opportunity there into outcomes.
All so that we can become the neighbour that is trusted, and relied upon, to do all of this.
Thank you.