Press conference, Sheraton Manila Hotel

  • Transcript, E&OE
Subjects: Australia-Philippines relationship; Australia-Southeast Asia Business Exchange (SEABX) mission; ASEAN; Vocational training; Conflict in the Middle East; Fuel security; AUKUS; Labour mobility.
18 March 2026
Philippines

Matt Thistlethwaite, Assistant Minister for Foreign Affairs and Trade: Thank you. Good afternoon, everyone. Thank you for joining us. I want to thank the people of the Philippines and the Filipino government representatives that I've met with for my first visit, and for this warm welcome to your beautiful country. I'm here leading a trade delegation of Australian education providers who are here to collaborate with Filipino education providers around transnational education to grow those opportunities that exist between our two great nations, to strengthen our educational ties and deliver economic benefits for both of our nations. In my time here, I've had the opportunity to meet with government ministers to discuss our commonalities and our common interests around economic development, stability and security within our region, and of course, educational opportunities. At the moment, we have about 250 Australian businesses operating in the Philippines, employing about 44,000 Filipino workers. Our two‑way trade relationship is approaching $12 billion in value, with opportunities for growth in the future. I want to congratulate the Filipino government on the great job you're doing as Chair of ASEAN this year. I've met with your Undersecretary for Foreign Affairs to discuss the issues the Philippines government will prioritise this year, and the opportunities for Australia to work with the Philippines government particularly around renewable energy, the digital economy, artificial intelligence and maritime security within our region. These are all policy areas that Australia has a keen interest in working on with the Filipino government. At the moment, you've got 25 delegates from various educational institutions who are here meeting with and collaborating with Filipino education providers to work on new projects and collaborations to deliver, hopefully, Australian‑based educational opportunities with Australian qualifications right here in the Philippines, by partnering with Filipino institutions to deliver better educational outcomes for Filipinos, and to upskill our workers and our economies into the future. So, thank you once again to the Philippines government, and thank you to the people of the Philippines for your very warm welcome. Our government is deeply committed to our bilateral relationship and our broader relationship with ASEAN into the future. I'm happy to take your questions.

Journalist: As you mentioned, Australian companies are among the largest investors in the Philippines and also major employers. And as you're probably aware, there's a learning crisis in this country, as confirmed by the Congressional Panel on Education. Some of the companies we talked to especially those in financial services and BPOs say that this crisis is hampering the growth of their businesses here because it's becoming increasingly difficult to recruit qualified talent. I wonder if those concerns are shared by Australia or Australian investors, and if you can describe their sentiments about the education crisis in this country?

Assistant Minister: I just had a meeting with Filipino government education ministers, including Secretary Angara, who outlined the major policy agenda your government has to upskill the domestic workforce for the jobs of the future. It's a very impressive program, and we discussed how Australia can assist in collaboration with the Filipino government to deliver those outcomes. I was very proud to learn that the vocational education and training system here in the Philippines is based on an Australian model, and we've got examples of Australian companies providing vocational education and training here in the Philippines and delivering Australian qualifications for workers. I think the important thing is that your government has recognised the need to upskill the population, and they're willing to partner with international institutions like Australian universities and vocational education providers to deliver that outcome. Your government has done a good thing in inquiring into the industry and putting together a policy roadmap. It's now up to us to work with the Filipino people and the government to deliver that roadmap.

Journalist: Are there any immediate programs that the Australian Government will roll out or implement?

Assistant Minister: Those programs are happening already. Philippine Airlines, for instance, are teaming up with Australian online providers to train pilots here in the Philippines with Australian qualifications. Australian universities are providing training and qualifications by partnering with Filipino universities. Australian vocational education and training providers are delivering programs here in partnership with local VET providers to deliver Australian‑based trade qualifications. And of course, about 20,000 Filipinos come to Australia every year to study as international students. Many of them study and work in the Australian economy and then bring those skills back here to the Philippines. So, I'm very impressed by the plan the government has for delivering better educational outcomes and upskilling the Filipino workforce, and Australia is proud to collaborate on that.

Journalist: If I can turn to a raging global issue, President Trump has said that Australia is among countries in the region, along with Japan and South Korea, which have refused his request to send Navy ships to help secure the Strait of Hormuz. Can you provide more clarity on Australia's position on this request, and what is Australia's overall position on the US and Israeli actions against Iran?

Assistant Minister: In terms of the US and Israeli actions, the Australian Government provided a statement of support for the US action to remove the threat of a nuclear weapon from the Iranian regime. This is a regime that has not only wrought destruction on its own people, but in the wider region. It has exported terrorism and has been involved in some of the worst atrocities including actions in Australia, where they've been involved in antisemitic attacks on Australian synagogues. That resulted in the Australian Government expelling the Iranian Ambassador and listing the IRGC as a terrorist organisation in Australia. Australia has no direct offensive actions against Iran. But we have provided military aircraft Wedgetail reconnaissance and surveillance aircraft to the government of the United Arab Emirates, and we've provided some short‑ to medium‑range missiles for the UAE government to protect their citizens and to protect the many Australians who live and work in the UAE and the broader region. Our government will do everything we can to protect Australians working abroad. There are about 115,000 Australians who live and work in the Middle East, and our priority is keeping them safe.

Journalist: Can I just go back to my first question about Australia's position on President Trump's request for Australia and other allies to send Navy ships to help secure the Strait of Hormuz?

Assistant Minister: Australia has not received a request from the United States to be involved in a naval capacity in that operation.

Journalist: Would that be something Australia would support or refuse?

Assistant Minister: I won't speculate on the future. Decisions such as that are made by the National Security Committee of Cabinet based on the circumstances. At the moment, there is no request from the United States for Australian naval operations in that area.

Journalist: With President Trump waging a war in the Middle East, does this weaken or strengthen the rules‑based order? And where do allies like Australia and the Philippines draw the line between supporting allies and maintaining independence?

Assistant Minister: The security and safety of citizens of the Philippines and Australia is paramount for our government, and we want to see the upholding of the rules‑based order in our region. We all live and work in the Asia‑Pacific. It's important for the livelihoods of citizens of the Philippines and Australia, and it's been an area that has been dynamic, with issues around security and safety particularly in the maritime domain. Australia will always work to uphold the international rules‑based order and to see those rules enforced, and we seek to do that in partnership with allied nations like the Philippines and ASEAN more broadly, because the security and stability of our populations and the health of our economies rely on that.

Journalist: If this situation triggers a prolonged global economic slowdown, how can the Philippines and Australia shield their economies from inflation and supply chain shocks?

Assistant Minister: Unfortunately, the longer this conflict goes on, the worse the potential impact on our economies. Already in Australia and indeed in the Philippines, as I've noticed in the last couple of days it has affected the price of fuel. In Australia, our government has acted to release about 20% of our strategic fuel reserves to increase supply about 760 million litres, predominantly diesel. We've had some shortages in farming communities in rural and regional areas, and we want to ensure adequate supply. Fuel supplies are getting through to Australia, but there have been constraints, given that most of our fuel is refined in South Korea and Singapore, and their supplies come through the Strait of Hormuz. So, there's an indirect effect on Australia, but thankfully fuel supplies are still arriving. Our message to the Australian people is not to panic buy what you need, and there should be adequate fuel supplies. When we were first elected four years ago, we made a strategic decision to increase our fuel reserves for occasions such as this, and because of that policy, we have reserves in place to provide adequate supply. I've noticed the Philippines government and parliament are debating issues regarding your fuel excise today, so your government is taking action as well. But we're all in the same situation: the longer this conflict goes on, the greater the impact on economic growth, particularly through inflation.

Journalist: You mentioned that you discussed maritime security with Philippine officials. May we know your current assessment of the situation in the South China Sea and Taiwan, in terms of the level of aggression you are seeing? And is there concern from Australia about the level of commitment of the United States in the region, considering President Trump's preoccupation with Iran?

Assistant Minister: Australia, like the Philippines, is an island nation, and we rely on shipping for the delivery and export of goods and services. It's the lifeblood of island economies, so we will always uphold the principles of freedom of navigation throughout the region, including the South China Sea. Australia has been involved in naval operations that uphold that principle. We also rely on the rules‑based order, and we note that in 2016 there was an arbitral decision regarding the South China Sea specifically the Scarborough Shoal which upheld the rights of Filipino fishers to fish in those traditional grounds. Australia supports decisions such as that, based on international rules, because without those rules, we risk conflict in the future, and no one wants that.

Journalist: Is Australia concerned about the US commitment to the region?

Assistant Minister: Australia's security relationship is founded in our ANZUS Alliance with the United States and New Zealand, and we have every confidence in that alliance being maintained. We are coming up to the period in Australia known as the dry season in our north, when our annual rotation of United States Marines takes place. Thousands of Marines come to Australia and train with Australian troops. We are also entering a period of multilateral exercises, including Pitch Black, which the Philippines military will participate in. We welcome the involvement of the Philippines Defence Force in exercises like that. On top of that, Australia has now entered into an agreement with the United States and the United Kingdom called AUKUS, which will deliver nuclear‑propelled but conventionally armed submarines for our Navy. This is the largest industrial endeavour in a military sense that Australia has undertaken. Eventually, we will manufacture nuclear‑propelled submarines in South Australia in the 2030s and 2040s. In the meantime, there will be Virginia‑class submarines acquired from the United States, crewed and captained by Australians as we build that capability. So we have every confidence in the ANZUS Alliance and AUKUS to continue delivering peace and stability within our region.

Journalist: Australia has a huge Filipino population. What skills are in demand in the Australian labour market? What opportunities are there for Filipinos?

Assistant Minister: The Philippines has a great advantage in having a very young population I understand the average age is around 26 which means you have a great opportunity to upskill your workforce for the jobs of the future. Australia doesn't have such a young population. Ours is ageing, which means we're not replacing the same number of workers who are leaving the workforce. That requires us to look to international partners to provide skilled labour in the Australian economy. There is great need in sectors caring for elderly Australians healthcare, aged care and disability care. The Philippines has a strong tradition of providing quality workers in the care economy. I know this personally: my mother is in an aged care facility, and she is looked after daily by three Filipino workers who have become good friends of mine and do a wonderful job. For me, that's the perfect endorsement of the contribution Filipino workers make in Australia. We're also seeing shortages in construction. We haven't been able to build enough homes for Australians. Our government is investing directly in the housing sector, but we will need a large number of skilled workers across the building trades to achieve that. And in other industries such as education, we have shortages as well. So, there are a wealth of opportunities for Filipinos in Australia. As I mentioned, we have about 20,000 Filipino students studying in Australia at the moment. The broader Filipino diaspora is about 400,000, many of them in Sydney, and they make a great contribution to Australian multiculturalism, our economy and our society. Australians love Filipinos.

Journalist: Do you have estimates for the workforce shortages, and are there plans for formal labour agreements?

Assistant Minister: We have tens of thousands of skill shortages in Australia across all the sectors I mentioned. We have partnerships with nations that provide labour in industries where they have strong traditions and one of those is the Philippines in the care economy. When Filipinos come to Australia, they can undertake further training, gain on‑the‑job experience, and bring those skills back to the Philippines when they choose to return home.

Journalist: Any talks in the pipeline to formalise an agreement?

Assistant Minister: The focus of this mission has been on education, and there are certainly discussions underway not only between state governments but also the Commonwealth government and education providers here. I just discussed with your departmental representatives an MOU between the South Australian Government and your Department of Education that we're hoping to finalise soon, which will provide vocational education and training opportunities for Filipinos in Australia. Thank you.

Media enquiries