Overview

Southeast Asia is strategically important to Australia given its proximity, complex security challenges and growing economic integration.

To protect and advance Australia’s interests, the department focused on deepening bilateral relationships and strengthening regional institutions. We streamlined aid investments to build economic partnerships and promote inclusive growth and gender equality in Southeast Asian countries.

The department led efforts to rebuild momentum in Australia’s relationship with Indonesia. We revitalised bilateral security architecture, particularly in counter-terrorism and cyber security, and resumed comprehensive economic partnership/free trade agreement negotiations. Following the Prime Minister’s successful visit to Indonesia in November 2015, we, together with Austrade, arranged the largest Australian business delegation to Indonesia. Our aid program helped accelerate sustainable economic growth by supporting economic institutions, infrastructure, human development and governance. We established a new consulate-general in Makassar to build trade and investment links in Indonesia’s east.

The department upgraded Australia’s bilateral partnership with Singapore, particularly on trade, defence and innovation, through our Comprehensive Strategic Partnership. We elevated the relationship with Malaysia to a strategic partnership, facilitating deeper dialogue on important security interests, supported by closer ministerial engagement. Australia and the Philippines agreed a new comprehensive partnership and an aid investment plan centred on resilience and economic development.

The political calendar in Australia and Vietnam limited opportunities for high-level bilateral contact but the strategic importance of the relationship continued to grow. The department worked well with Vietnamese authorities to manage issues such as illegal people movements, widely reported mistreatment of exported live cattle, illegal fishing and quarantine. We refocused our aid on economic partnership, with Australia’s largest infrastructure project in the region, the Cao Lanh bridge, a significant investment in Vietnam’s economy.

The department advised the Government on appropriate engagement with Thailand’s interim government, balancing our ongoing interest in an early return to democracy with our other wide-ranging priorities. We supported ministerial visits and Australian investors. To improve services for Australians overseas, we opened a new consulate-general in Phuket.

We coordinated Australia’s efforts to support Myanmar’s peaceful transition to democracy. We worked with the Department of Immigration and Border Protection to advance Australia’s commitment to refugee resettlement in Cambodia and launched an innovative infrastructure development program. We also lifted engagement with Laos on regional issues ahead of its hosting of ASEAN and East Asia Summit (EAS) meetings in 2016 and initiated a flagship basic education project.

We encouraged Brunei Darussalam to make sharia law changes consistent with international human rights norms.

The department advanced Australia’s interests in Timor-Leste’s stability and prosperity by upholding the Timor Sea treaties and the sound management of shared petroleum resources. Despite significant differences on these issues, we remain committed to working with Timor-Leste to find a common solution. We helped Timor-Leste diversify its economy, reduce poverty and promote gender equality.

We enhanced Australia’s strategic partnership with ASEAN, securing agreement to biennial Australia–ASEAN summits from 2016. We also reshaped the Southeast Asia regional aid program to focus more sharply on economic development and combatting human trafficking.

We used our strong relationships with ASEAN and the EAS countries to promote a rules-based regional order and adherence to international norms. We coordinated whole-of-government efforts on the South China Sea, encouraging all claimants to resolve their disputes peacefully in accordance with international law.

The department boosted community engagement between Australia and Southeast Asia through the establishment of the Australia–ASEAN Council, launched by the Foreign Minister in September 2015. The council’s programs and activities seek to reach beyond the remit of governments and focus on women in leadership, collaboration and innovation across three sectors—trade and economic development, technology and entrepreneurship, and culture and education.

Results

Promoting a stable
and prosperous regional
and global environment
by cultivating and
deepening our engagement with bilateral and
regional partners and multilateral institutions

Australia and the East Asia Summit

Case Study
photo-14-southeast-asia-case-study-eas-logo_non_event_malaysia_2015_-approved_pastel_5
10th East Asia Summit, Kuala Lumpur, Malaysia, 22 November 2015.

Australia and the East Asia Summit

Through our active policy agenda and our leadership of, and support for, Australian delegations to EAS meetings, the department strengthened the EAS as the region’s premier forum for addressing key strategic challenges.

We influenced the content of the Kuala Lumpur Declaration issued by leaders in November 2015. The declaration sets out the commitment of EAS leaders to work together to build a peaceful and stable regional environment in the context of ongoing tensions in the South China Sea and the Korean Peninsula, the return of foreign fighters from the Middle East and slower, uneven economic growth.

The department led a whole-of-government effort to deliver an EAS Leaders’ Statement on Countering Violent Extremism that will encourage countries to share their experiences and develop counter-narratives to combat the terrorist threat. Australia co-sponsored a Leaders’ Statement on Enhancing Maritime Cooperation, which elevated the importance of key maritime security principles, including the freedom of navigation and overflight and peaceful settlement of disputes.

Looking ahead, the department will support initiatives to strengthen the EAS’s institutional capacity. The development of an EAS ambassadors’ mechanism based in Jakarta will help members respond to emerging issues in real time, without waiting for scheduled EAS meetings. The creation of a dedicated EAS unit within the ASEAN Secretariat in Jakarta will also, in time, promote better monitoring and implementation of EAS decisions.

The department’s investment in building the EAS’s policy and institutional capacity continues to strengthen our bilateral relations with Southeast Asian countries and enhances the culture of dialogue and cooperation that promotes regional stability.

Promoting a stable
and prosperous regional
and global environment
by cultivating and
deepening our engagement with bilateral and
regional partners and multilateral institutions

Myanmar elections – facilitating democracy

Case Study
photo-15a-southeast-asia-cropped-case-study-myanmar-elections
LES officer Kyaw Kyaw waits to cast his vote, Myanmar general elections, Yangon, 8 November 2015. [DFAT/Carla Giuca]

Myanmar elections – facilitating democracy

In November 2015, Myanmar held its first successful and openly contested elections since 1960—an important milestone in the country’s democratic transition. The elections were conducted in a peaceful and orderly manner. The election—a resounding victory for Aung San Suu Kyi’s National League for Democracy—provided an opportunity for the people of Myanmar to express their political will.

The department supported the elections as part of a broader objective of promoting stability and prosperity in our region. We provided $5.4 million through the International Foundation for Electoral Systems and the Australian Electoral Commission (AEC) to strengthen Myanmar’s Union Election Commission (UEC), train poll workers and support voter education.

Our support enabled the UEC to modernise training practices for 81,000 polling station officials, many of whom had never previously run an election. The training allowed them to implement electoral laws effectively and run a well-managed process. Our assistance also helped support marginalised groups, including disabled people and ethnic minorities, participate in the elections.

The department also funded The Asia Foundation to produce an innovative smartphone app that provided information about the elections, candidates, political parties and election procedures. The app was accessed more than 12 million times.

The department supported ten Australian teams to observe the conduct of the elections in nearly 100 polling stations across six states and regions. Teams included Australian parliamentarians Senators Dean Smith and Scott Ludlam and Ms Lisa Chesters MP, and officials from the AEC and the Australian Embassy in Yangon. These teams were an important component of a broader local and international effort to bring transparency and accountability to the conduct of the elections.

Our experience in supporting Myanmar’s successful elections demonstrated the value of strong relationships with the UEC and close coordination among stakeholders to maximise the effectiveness and reach of our assistance. The department will build on this experience in our ongoing support for the UEC as it prepares for elections in 2020.

Improving market access for Australian goods and services, attracting foreign investment to Australia and supporting Australian business abroad

Advancing economiC ties with Singapore

Case Study
Australian Foreign, Defence and Trade and Investment Ministers meeting their Singaporean counterparts in Sydney. [DEPARTMENT OF DEFENCE/LSIS Tom Gibson]
Ninth Singapore–Australia Joint Ministerial Committee Meeting, Sydney, 18 March 2016. (L. to R.): Special Envoy for Trade Andrew Robb AO, Minister for Trade and Investment Steven Ciobo, Minister for Defence Senator Marise Payne, Minister for Foreign Affairs Julie Bishop, Singapore’s Minister for Foreign Affairs Vivian Balakrishnan, Minister for Trade and Industry Lim Hng Kiang, and Minister for Defence Ng Eng Hen. [DEPARTMENT OF DEFENCE/LSIS Tom Gibson]

Advancing economiC ties with Singapore

The department was instrumental in delivering a package of new initiatives to advance our Comprehensive Strategic Partnership (CSP) with Singapore. The highlights include a significant upgrade to the 2003 Singapore–Australia Free Trade Agreement (SAFTA) and a major enhancement to defence cooperation. The package forms part of a decade-long plan to strengthen strategic, trade, economic, defence and people-to-people links with Singapore.

The initial major package under the CSP was the culmination of intense negotiations with Singapore by Special Envoy for Trade, Andrew Robb, and department officials. The 9th Singapore–Australia Joint Ministerial Committee meeting in Sydney in March 2016 provided directions regarding the outcomes later formally announced by prime ministers on 6 May 2016.

The SAFTA improvements significantly enhance market access and labour mobility for Australian businesses operating in Singapore. As a gateway to the region, improved access to Singapore will mean greater opportunities for Australian businesses in regional markets.

Through the CSP, the department worked with multiple Australian government agencies to accelerate cooperation with Singapore in innovation, tourism, education, science, visual and performing arts, research and technology. Australia will locate one of its five innovation landing pads in Singapore, providing exciting opportunities for Australian start-ups to link into global networks. Greater tourism cooperation with Singapore will occur through sharing research, data and market insights.

Work on the CSP is an important example of how the department coordinates across government to deliver strong outcomes for Australia. As a result of the initial CSP package, Australian businesses in Singapore and the region have more opportunities, and people-to-people links will intensify in the years ahead.

Delivering an innovative aid program, centred on the
Indo–Pacific region, which contributes to sustainable economic growth, poverty reduction and regional stability

Improving livelihoods in Timor-Leste

Case Study
photo-17a-case-study-timor-leste-cropped
Ambassador to Timor-Leste Peter Doyle (right) with The Asia Foundation’s Timor-Leste Country Representative, Susan Marx, launches the Australian-funded Nabilan program’s Ending Violence Against Women Baseline Study, Dili, May 2016. [THE ASIA FOUNDATION]

Improving livelihoods in Timor-Leste

The department’s aid program in Timor-Leste adopted innovative approaches to improving livelihoods, enhancing human development and strengthening governance and institutions, including by integrating gender equality, nutrition and disability-inclusive development into all sectoral programs.

Our Farming for Prosperity program, known as ‘TOMAK’, commenced in 2016 as Australia’s first nutrition-sensitive agriculture investment. It will focus on improving the diets of rural households and raising incomes by linking farmers to markets and supporting farmers to grow more nutritious food. This builds on the success of the Seeds of Life program (2011–16), which improved the development and distribution of better-yielding varieties of staple food crops.

To address high rates of maternal mortality, illiteracy and childhood stunting, the department’s aid program focused on basic education and maternal and child health. We supported the training of 262 teachers to improve children’s learning outcomes and we helped 12,163 people access maternal and family planning services. Our ‘Liga Inan’ (‘Linking Mothers’) program adopted an innovative approach to maternal health, using text messages to enable midwives to provide information and advice to mothers before, during and after child birth.

The department advanced economic diversification in Timor-Leste by supporting local businesses through the Market Development Facility (MDF). For example, MDF supported a salt production business, NPM Industries, to improve its marketing and quality assurance. NPM offers a higher quality product at a lower price than its imported competition and is a recognised leader in Timor-Leste’s nascent agribusiness sector.

In 2015–16, the department implemented a holistic strategy to improve gender equality in all of our aid investments. We helped address the causes and consequences of violence against women, with 3,168 clients accessing domestic violence shelters and support services during the year. The success of this approach demonstrates the importance of breaking down information silos and seeing development as an integrated set of challenges that all our programs can assist in overcoming.

Analysis and outlook

While the department made good progress in 2015–16 and is well placed for the future, Southeast Asia’s growing complexity and the fluidity of political-economic situations in a number of countries will require us to respond even more nimbly to protect and advance Australian interests in the year ahead. We will do this by further consolidating regional institutions and bilateral partnerships to drive strategic cooperation, leveraging economic opportunities and delivering an innovative aid program.

With strong political-level links in place with Indonesia, the department will need to elevate business and community relationships and understanding. We will progress the IA-CEPA negotiations. We will also advance our counter-terrorism and cyber cooperation and support Indonesia’s efforts towards inclusive growth.

Under the CSP with Singapore, we will implement the outcomes of the SAFTA review, upgrade our defence cooperation and build our bilateral innovation agenda.

With Malaysia, our focus will be on upgrading security cooperation and building people-to-people links. With the Philippines, our priority will be to build relationships with the new government.

The department will prioritise political linkages with the new leadership groups in Vietnam, Laos and Myanmar to enhance our bilateral relations, capitalising on high-level visits during Laos’ hosting of the EAS and Vietnam’s hosting of APEC in 2017. We will monitor political developments in Thailand, especially following the August 2016 constitutional referendum, and push to modernise the Thailand–Australia Free Trade Agreement. We will promote greater understanding of the breadth of our growing relationship with Cambodia.

We will defend our interests in the Timor Sea while drawing on the strength of our networks in Timor-Leste to encourage economic diversification.

The first biennial Australia–ASEAN leaders’ summit in Vientiane in September 2016 will be a platform to continue to upgrade our relationship with ASEAN. We will also promote commercial opportunities under ASEAN’s economic integration agenda and strengthen the EAS’s political-security role. We will continue to advocate peace and stability in the South China Sea.

Back to top