“There exists an opportunity and an imperative to build a partnership that is more connected, resilient and capable of creating shared prosperity”

The global landscape is undergoing a notable change, reshaping economic opportunities and regional interactions. Evolving supply chains, the increasing deployment of technology and climate change are among the key factors reinforcing the need for stronger regional co-operation to support long-term growth and resilience. Looking at Australia and the Association of Southeast Asian Nations (ASEAN), partnerships and cooperation undertaken over the years provide an opportunity to further build on these relations. In his keynote remarks at the Australia-ASEAN Business Forum 2026, H.E. Dr Kao Kim Hourn, Secretary-General of ASEAN, highlighted the key areas where the partnership can have a meaningful impact. Edited excerpts…

The world in which economic relationships were built is now changing faster than anticipated. Technology is redrawing the competitive landscape. Geopolitical and geo-economic tensions are testing the resilience of established systems. Further, climate change is forcing countries to reassess how production, trade and investment are carried out. Global supply chains are being reconfigured, not just for efficiency, but increasingly for resilience, security and strategic confidence. These structural shifts will shape economic opportunities for decades. For ASEAN and Australia, the question, therefore, is not whether economic integration should be deepened, but how quickly and how ambitiously it can be carried out. There exists an opportunity and an imperative to build a partnership that is more connected, resilient and capable of creating shared prosperity.

ASEAN Community Vision 2045

Under the ASEAN Community Vision 2045, ASEAN is embarking on a new phase of economic transformation, with a focus on deeper integration and connectivity while building a region that is more resilient, inclusive, innovative, sustainable and people-centred. Australia remains an important partner in this journey. The next ambition must focus on connecting markets, supply chains, capital, technology and people to create new engines of growth and shared prosperity.

Key focus areas

Enhancing trade and investment

Reinforcing an open and rules-based trade and investment framework remains the backbone of ASEAN-Australia economic relations, built on two decades of steady work. The ASEAN-Australia-New Zealand Free Trade Area (AANZFTA), signed in 2009, created one of the most comprehensive economic agreements. The Regional Comprehensive Economic Partnership (RCEP) has since facilitated connections to the world’s largest free trade agreement. Cooperation has grown broader, deeper and more forward-looking since the establishment of the ASEAN-Australia Comprehensive Strategic Partner­ship. Such groundwork is critical in a time of uncertainty and geo-economic rivalry, when open markets, transparent and predictable rules, and trusted partnerships carry real weight. The upgraded AANZFTA, together with the RCEP, provides businesses with a strong platform to diversify markets, deepen regional production networks and build more resilient supply chains. The priority is now on turning these agreements into real on-ground opportunities. Effective implementation is hence encouraged, alongside feedback from the private sector to ensure that businesses, especially micro, small and medium enterprises (MSMEs), can fully benefit.

Deepening economic connectivity

Economic connectivity is equally vital to economic security. Connectivity extends beyond roads, ports, bridges and airports and includes digital links, energy networks, logistics systems, standards, data flows, financial connectivity and people-to-people ties. ASEAN’s and Australia’s complementary strengths provide a powerful foundation in this regard. ASEAN brings scale, growing markets, dynamic manufacturing and digital ecosystems, and expanding regional supply chains. Australia brings world-class capabilities in resources and critical minerals, clean energy, capital, technology, education and professional services. Connecting these strengths can help move beyond trading with one another towards investing, producing, innovating and growing together, building more resilient supply chains, accelerating the digital and green transitions, and strengthening collective economic security.

Driving energy transition

Advancing the energy transition is central to a sustainable future. Recent energy disruptions have highlighted that energy security, and the green transition must advance together. ASEAN needs an energy future that is secure, affordable, accessible and sustainable, while also continuing to support economic growth. Achieving this will require investments at scale, technological innovation, stronger regional connectivity and effective public-private engagements and partnerships. Australia is a valuable partner in this transition. Through initiatives such as the ASEAN-Australia Energy Co-operation Program, Australia is supporting the ASEAN Carbon Neutrality Strategy, including the ASEAN Power Grid. By combining ASEAN’s growing energy market and renewable energy potential with Australia’s advanced technologies in clean energy, resources, finance and project development, energy security can be strengthened, and new opportunities can be created. Businesses and investors can seize this opportunity, and aid in turning the energy transition into a new engine of competitiveness and shared prosperity for both ASEAN and Australia.

Shaping a digital economy

Shaping a trusted, inclusive and innovative digital economy is another priority. For ASEAN, the digital economy is one of the most important engines of future growth. The signing of the ASEAN Digital Economy Framework Agreement (DEFA) scheduled for November 2026 reflects ambitions to build a more integrated, trusted and competitive digital economy across the region. Australia’s support for ASEAN’s digital transformation, including digital trade standards, e-invoicing, future skills and MSMEs’ digital readiness, is both timely and valuable. There is scope for ASEAN and Australia to work together on responsible artificial intelligence, digital infrastructure, cybersecurity, data governance, talent development and innovation ecosystems. Above all, there is a need to ensure that technology serves people, that innovation strengthens trust, and that digital transformation creates opportunities for MSMEs, women entrepreneurs, youth and communities across the region, not only for large firms.

Building skills and capabilities

Investing in human capital is essential for an inclusive and future-ready economy. Australia has long been an important education and training partner for ASEAN. Educational services, skilling and upskilling programmes, professional networks, cultural exchange and youth leadership are increasingly important in ASEAN-Australia relations. These partnerships have built generations of skilled professionals across the region. As technology and emerging industries reshape the future of work, human capital partnerships must deepen co-operation in digital and green skills, technical and vocational education, workforce mobility and industry-academia collaboration.

In sum

While governments can create enabling frameworks, businesses must mobilise investment, build supply chains, drive innovation and connect markets. There is a need to move from partnership as a principle to integration as a strategic advantage, and to turn the period of profound change into a platform for the next phase of growth.