Australia unveils US$1.3 billion fund to hitch its future to Southeast Asia

“The government I lead has made it clear. More than any other region, Southeast Asia is where Australia’s future lies,” Albanese told a business forum on the summit’s sidelines.

The fund, which was recommended last year by Australia’s envoy to the region, will focus on clean energy and infrastructure and provide loans, guarantees, equity and insurance. Australia will also tip in an extra A$140 million to extend an existing programme which advises the region on infrastructure projects.

“Australia and Southeast Asia must together face this moment with a sense of optimism and urgency,” Alabanese said on Tuesday in his speech announcing the fund. “Because while there is so much untapped potential, there is not unlimited time. We must act together, and we must act now.”

Following a series of bruising disputes, Australia has increasingly looked to build economic ties outside of major trading partner China.

The Asean bloc, fuelled by years of swift and sustained population growth, is widely seen as an emerging economic powerhouse.

Australia is hosting the Asean summit, which marks the 50th anniversary of its ties to the bloc, amid growing recognition in Canberra that the region needs to be cultivated at a time when China’s increasing assertiveness is reshaping the Indo-Pacific.

With vast deposits of critical minerals and a booming appetite for electricity, Southeast Asia is also poised to play a major role in the global push for clean energy.

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Australia’s new funding package will provide export financing and loans geared largely towards infrastructure and renewable energy projects.

Albanese said it was “the most significant upgrade of