As we collectively exhale from the excitement around the ASEAN Summit and its multitude of side events, the explosion of related business data, announcements and group photos, the ceremonious door-opening by the government has left Australian business leaders with the challenge of the next step.
The Australian Government’s strategy for engagement with the one and multitude of markets just over the northern horizon, Invested: Australia’s Southeast Asia Economic Strategy to 2040, has thankfully started to address this reality by positioning Australia in a shared future with ASEAN.
Pre-empting increased interconnectivity beyond integration and the understanding that the Australian and ASEAN economies could be one market because of geographic proximity, for a first-time Australian exporter or entrepreneur, this must be in a framework that recognises the nuances in the market.
The problem is not the clarity of the strategy, but the comfort zone of the humans involved. The average Australian businessperson wakes up in the morning thinking about projects and businesses in the city or town where they are located, and perhaps those with a bigger footprint think statewide or nationwide.
Last year, only 56,274 businesses were exporting, with 62 per cent of them being small exporters. The first task may not be the ASEAN component of the strategy; the first task is selling ASEAN to Australian businesses to, in turn, have Australian businesses sell Australia to ASEAN.
From an outward-looking perspective, the strategy is on point and addresses many gaps. It raises awareness through targeted sectoral business missions, removes blockages by expanding collaboration on trade rules and standards harmonisation with Southeast Asian partners which is both a bilateral and multi-lateral challenge, deepens investment including in Australian Government facility for infrastructure projects, and builds capacity via government-to-government technical assistance.
For those already operating in ASEAN, the understanding of the risk matrix in terms of trade and investment has changed; precipitated by shifting geopolitical realities and external forces like climate and domestic politics to name a few. Strategic planners of critical supply chains now need to contend with not just making money but also the increasing trend towards resource protectionism. ASEAN is unavoidably at the centre of the Indo-Pacific. As such, it should receive disproportionate attention beyond the traditional cost-benefit analysis.
High-level analysis and geopolitical clarity do not help sell specialty cheese or education services. For a successful ASEAN market entry, it may be more about the ‘who’ than the ‘what’ or the ‘why’. The relationships between real people who will make purchasing decisions are needed as a precursor to a sustainable business. The deal teams that the Economic Strategy to 2040 speaks of is a step in the right direction, but who will be in these teams coupled with the existing networks?
There are a group of Australians who trace their roots back to Southeast Asia but have just spent years working hard to “make it to Australia” so they can have a better lifestyle and better educate their children. How do we tell them that “actually we need you to head up operations in Jakarta or Singapore?”
The recent alumni of the New Colombo Plan should be fertile hunting grounds from the energetic talent that is Asia and ASEAN literature with some experience and some relationships in a specific market. These, coupled with Australian businesspeople who, with northwards of a decade in a market, can assist Australian businesses as they attempt to penetrate a particular market in ASEAN.
The conduit should include the network of Australian bilateral business councils established in most cases for decades in the region, augmented by AustCham ASEAN – an official dialogue partner to ASEAN. This organisational component ensures a level of trust that is much needed for businesses stepping out of their comfort zone. Will the current government allocate actual resources to these organisations, or will it remain invested in the salaries of public servants?
The culmination of the documents, the strategies, the statements and the trips must be an ongoing relationship with a business leader in ASEAN who signs that first export deal for exporter number 56,275 and beyond.
This letter to the editor is written by Nordin Abdullah, an Australian born in rural New South Wales and who has lived in Asia for over 30 years. He is the Vice President of the Australia ASEAN Chamber of Commerce (AustCham ASEAN) and Vice Chairman of the Malaysia Australia Business Council (MABC). Nordin was part of the many consultations with Australia’s Special Envoy to Southeast Asia, Nicholas Moore AO, in developing Invested: Australia’s Southeast Asia Economic Strategy to 2040. He is also the Founding Chairman of the Malaysia Global Business Forum (MGBF) and EXCO for the Malaysia Cricket Association (MCA).
*Disclaimer: The views expressed are those of the writer and do not necessarily reflect those of NHA – News Hub Asia. 
