South Australia is making some serious moves in Southeast Asia! Minister Joe Szakacs recently met with ASEAN Secretary-General Dr. Kao Kim Hourn in Jakarta, signaling a deepening of ties with this crucial region. But why is this so important? Well, ASEAN is on track to become the world’s fourth-largest economy by 2040!
The meeting focused on mutually beneficial opportunities for South Australia and the rapidly growing ASEAN bloc. Key discussion points included energy, the blue economy, the digital economy, exports, investment, and aviation connectivity.
Here’s where it gets interesting: Recent Australian Bureau of Statistics (ABS) trade data reveals that South Australian exports to the 11 ASEAN member nations are now comparable to those to China, valued at a whopping $3.5 billion, and accounting for 21% of the state’s total exports. This highlights ASEAN’s significant and growing importance to South Australia’s economy, even more so than for the nation as a whole.
The figures also show that South Australia’s share of national exports to ASEAN is nearly double what it is to the rest of the world. Specifically, 5.9% of South Australia’s national exports go to ASEAN, compared to 3.2% to the rest of the world – that’s 84% higher!
This economic relationship is further strengthened by strong people-to-people connections. As of August this year, there were 8,429 international students from ASEAN countries enrolled in South Australian institutions. Moreover, nearly 60,000 visitors from the region came to the state during the previous financial year.
Over the past decade, foreign direct investment (FDI) from ASEAN has generated 878 local jobs in South Australia, with capital expenditure exceeding $1.5 billion.
The Malinauskas Government has clearly identified Southeast Asia as a priority market in its recently released trade and investment strategy, recognizing its projected growth over the coming decades.
In August, Adelaide hosted the ASEAN Business Forum, the region’s largest corporate event, for the first time in over a decade. Minister Szakacs’ trade mission has also included visits to Singapore, Malaysia, and Indonesia – key economic and political players within ASEAN.
The ASEAN region, home to over 600 million people, is strategically important. As Minister Szakacs stated, “The ASEAN region is right on our doorstep and is going to be increasingly important to the South Australian economy into the future as it continues to grow.”
The government’s message to ASEAN leaders is clear: “We are open for business.”
What do you think? Is this focus on ASEAN the right move for South Australia? Do you see any potential challenges or opportunities in this growing relationship? Share your thoughts in the comments below!