On Tuesday, Australia announced its intentions to increase its investment in Southeast Asia, allocating US$1.3 billion to support commerce in a region experiencing growing economic power.
The financing was announced by Prime Minister Anthony Albanese during a three-day summit in Melbourne with leaders of the ASEAN forum, which consists of ten nations.
“The government I lead has made it clear. More than any other region, Southeast Asia is where Australia’s future lies,” Albanese told a business forum on the summit’s sidelines.
After a string of painful disagreements, Australia has been looking more and more to forge commercial connections outside of China, its main trading partner.
Driven by years of rapid and consistent population expansion, the ASEAN region is commonly regarded as a rising economic giant.
Southeast Asia is likewise well-positioned to be a major player in the global quest for renewable energy, thanks to its abundant supplies of vital minerals and growing need for electricity.
Australia’s new funding package will provide export financing and loans geared largely towards infrastructure and renewable energy projects.
Albanese said it was “the most significant upgrade of Australia’s economic engagement with ASEAN for a generation”.
As leaders of the Association of Southeast Asian Nations arrive in Melbourne for a “special summit” with their Australian counterparts, climate change is a major topic of discussion.
Fossil fuels are the main source of energy for Southeast Asia, and Australia is still one of the world’s top exporters of gas and dirty thermal coal.
Both are getting more and more keen to switch to renewable energy.
