The Australian Government is establishing an A$2 billion investment financing facility to boost investment in Southeast Asia.

According to a report from the ASEAN Special Summit which took place in Melbourne this week, in 2022 Australia’s two-way investment with ASEAN including Laos was worth A$307 billion while the value of two-way trade with ASEAN was A$178 billion.

According to a press release from the Ministry of Foreign Affairs, Australia’s Prime Minister Anthony Albanese unveiled a package of focused initiatives that represent the next phase of the government’s response to recommendations in the Southeast Asia Economic Strategy.

This includes the A$2 billion Southeast Asia Investment Financing Facility (SEAIFF) which is managed by Export Finance Australia.

The Facility will provide loans, guarantees, equity and insurance for projects that would boost Australian trade and investment in Southeast Asia, particularly in support of the region’s clean energy transition and infrastructure development.

A$140 million has been allocated over four years to extend the Partnerships for Infrastructure Programme. The programme will support efforts to improve regional infrastructure development and attract more diverse, quality infrastructure finance, including from the Facility.

The programme has been running since 2021 and has assisted partners to accelerate transport connectivity, the clean energy transition and telecommunications reforms.

Australia has also appointed 10 “business champions” to facilitate greater commercial links between Australia and the economies of ASEAN.

The champions are senior Australian business leaders who will ensure that government and the private sector work in tandem to boost two-way trade and investment.

Another initiative is the launch of regional technology ‘Landing Pads’ in Jakarta and Ho Chi Minh City. The new landing pads will provide on-the-ground support for Australian businesses to boost technology services exports to Southeast Asian markets following the establishment of the initial ‘Landing Pad’ in Singapore in 2017.

In addition, business visitor visas to those from SEA will be extended from three to five years and the 10-year Frequent Traveller scheme will be extended to eligible Asean member states and Timor-Leste.