NSW to recalibrate ASEAN trade strategy amid ‘unmissable opportunity’
The NSW government is set to accelerate and deepen economic ties with ASEAN markets as the trade minister announced he would ‘recalibrate’ the state’s trade strategy with Southeast Asia.
The NSW government is set to accelerate and deepen economic ties with ASEAN markets as the industry minister announced he would “recalibrate” the state’s trade strategy with Southeast Asia.
Speaking from Melbourne at the ASEAN-Australia Special Summit, NSW Trade Minister Anoulack Chanthivong – who is of Laotian descent – told The Australian previous governments had been sleeping on better engaging with the region’s markets, saying the government would “recalibrate” its strategy to capitalise on growth and ASEAN’s rapidly increasing middle class.
“The opportunities for NSW business and the economy, from services to primary agricultural products, are immense,” he said.
“We cannot afford to miss this opportunity to drive our industries and exports, increase jobs and diversify our economy.”
NSW’s trading relationship with ASEAN markets is developed – it was the state’s third-largest two-way trading partner, worth a combined $36.4bn, in 2022/23 – but Mr Chanthivong said that should be “the base”.
“We can do so much more,” he said. “Rising incomes and affluence (across ASEAN) means demand for products and services that the NSW economy can deliver is almost unlimited.”
Mr Chanthivong is representing the Minns government in meetings with delegations from ASEAN members as Anthony Albanese announced a $2bn investment facility to underpin the clean-energy transition and better infrastructure in Southeast Asia, to deepen economic ties to the “fastest-growing region in human history”.
On Tuesday, the Prime Minister also revealed ten business “champions” to promote and facilitate trade and business links between the markets.
Two-way trade in goods between ASEAN and NSW has been growing year-on-year by about 13 per cent while the state’s linkages to the region are longstanding: it is home to about 35 per cent of Australia’s residents who were born in the region, with many more of Southeast Asia descent.
Mr Chanthivong said that as ASEAN’s middle-class population continued to grow – it already numbers about 190m – people and businesses would “want the (comparable) standards of living, products and services”.
“That goes to show the potential to really establish our economic presence,” he said.
“We invest more with our friends in New Zealand, which has a population of 5m people, than we do in an economic bloc that has 670m people.”
Mr Chanthivong said it would be “a shared economic benefit” and that time was of the essence.
“It’s important to start building these relationships now, make these connections, sell the great things we can produce and provide ... rather than wait for the markets to mature.”
A new strategy, Mr Chanthivong said, would zero in on growth industries.
“Those that would provide the greatest economic, employment and income opportunities for the people of NSW,” the minister said, citing sectors like green and renewable energy, agribusiness and agriculture, and health.
“NSW could provide food security for 670m consumers who may want to buy NSW wheat, livestock… those areas are where we can really hone in on and use to our advantage.”
A key would be to “demystify” the markets.
“We need to change our thinking about the ASEAN market from 20 years ago, these economies have changed significantly, the risks that may have been there 20 or 30 years ago are no longer there,” Mr Chanthivong said, saying he’d be helping businesses gain a “greater presence” in the markets.
“There are distinct differences between each of the ASEAN markets… (but) whether you’re out in the Riverina or in the Sydney CBD, this is too big of an economic opportunity to miss.
Mr Chanthivong said his ties to and understanding of the region were an advantage and that state policy would align with federal.
“We’re not going to be too far from (their) strategy, given we need to work together as part of ‘team Australia’,” he said, saying the country’s largest economy would “take a leading role”.
In total, NSW exported $150bn of goods and services in the last financial year.
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