last week at a summit in Melbourne. It was the latest in a long list of initiatives and events that have demonstrated Australia’s value to South-East Asia as a regional partner.
There is, though, one thing missing. The economic engagement has been limited. Last week Anthony Albanese lauded announcements that Australian companies were committed to investing $5 billion in Malaysia. That’s good. He also chastised Australian businesses for not doing more in South-East Asia. That’s economic illiteracy.
But what is revealing is where Australia invests its money. According to DFAT, about 30 per cent is invested in the US. The next largest destination is the UK, around 22 per cent. And then New Zealand with 4 per cent. Singapore, again, is the only ASEAN country among the top 20 investors in Australia. And by the way, if you are concerned China is buying up Australia, it only contributes 1.9 per cent of total foreign investment, although if we add Hong Kong to China then the figure is about 4.5 per cent., our economic engagement is so limited? The answer is simple: it’s easier and safer to invest in the US and the UK than ASEAN.
Years ago the ANZ bank bought a British bank called Grindlays, then the largest foreign bank in South Asia. So suddenly Australia was a big money investor in India, Pakistan, Bangladesh and Sri Lanka. I remember being the guest of honour at a spectacular open-air dinner in Karachi hosted by the head of ANZ Pakistan. Australia was praised to the sky.But eventually ANZ sold Grindlays and that diminished Australia’s presence on the subcontinent. It reduced our soft power and relevance.