Australia and S-E Asia drifting apart over US-China rivalry

As Canberra doubles down on ties with the US and Aukus, its hopes of forging deeper links with Asean face growing headwinds.

- Jonathan Pearlman

US President Donald Trump greeting Australian Prime Minister Anthony Albanese at the White House on Oct 20. A close US ally, Australia has been siding more closely with the US regional outlook than most South-east Asian countries are comfortable with. At the same time, Australia is more wary of Chinese encroachment and intentions than many in the region.

(PHOTO: AFP)

Australian Prime Minister Anthony Albanese was elected in 2023, amid grand plans to reboot and enhance the country's ties with Southeast Asia. Yet his visit to the region in end-October was a stark reminder that this was always going to be a task easier said than done.

To his credit, Mr Albanese's visit to Malaysia for the Asean and East Asia Summit gatherings and to South Korea for the Apec summit, where he met regional leaders and received a warm reception, were smooth and trouble-free.

Mr Albanese told reporters in Gyeongju in South Korea on Oct 31 that Australia's international engagement was "in good shape". "We are a reliable partner, we engage respectfully, we engage diplomatically, (and) our word counts," he said.

But the only major announcement during Mr Albanese's week-long visit was a relatively modest A$250 million (S$213 million) plan to boost Australian investment in Southeast Asia.

The new fund, aimed at encouraging investment in regional renewable energy, telecommunications and logistics projects, is a step in the right direction. While a welcome move, the news highlighted Australia's relatively shallow economic ties with the region - a problem that is partly due to its risk-averse business community's reluctance to embrace the commercial potential of Southeast Asia's fast-growing economies.