Home » Australia promises $2 billion fund for South-East Asian countries

Australia promises $2 billion fund for South-East Asian countries

Prime Minister Anthony Albanese will on Tuesday unveil a $2 billion fund to boost Australian trade and investment in South-East Asia as the government tries to build stronger commercial ties with the booming region.

The government has signalled that it wants to expand its economic relationship with the region, both to bolster Australia’s prosperity but also to reinforce its strategic position in major emerging economies like Indonesia and Vietnam.

Now it’s revealed it will accept a key recommendation from its special adviser Nicholas Moore, who recommended last year the government establish a “strategic investment facility” for South-East Asian infrastructure projects, drawing on Export Finance Australia.

The new fund will be called the South-East Asia Investment Financing Facility with a particular focus on clean energy and infrastructure projects.

Anthony Albanese with Vietnam’s Prime Minister, Pham Minh Chinh.(Twitter: Anthony Albanese)

It comes almost five years after the Morrison government established the Australian Infrastructure Financing Facility for the Pacific, which uses grant funding of up to $1 billion and long-term loans of up to $3 billion to back infrastructure development in the Pacific.

Mr Albanese is expected to make the announcement at a major lunch on Wednesday in front of dozens of CEOs from both Australia and South-East Asia as part of the Australia-ASEAN summit in Melbourne.