ASEAN Market Outlook 2021-22 - Trade and investment opportunities for Western Australian businesses - Government of Western Australia
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ASEAN Market Outlook 2021-22 Trade and investment opportunities for Western Australian businesses
ASEAN market overview
Combined gross If ASEAN were a single
domestic product Combined population country it would have the
US$3.0 trillion 661 million 5th largest
(EIU 2020) 3rd largest in the world (2020) economy in the world
The Association of Southeast Asian Nations businesses looking for a new and growing
(ASEAN) is a cooperative intergovernmental export market. Many ASEAN countries are
group of 10 neighbouring countries – Brunei, industrialising and urbanising, and have
Cambodia, Indonesia, Laos, Malaysia, growing demand for minerals and energy.
Myanmar, the Philippines, Singapore, With a rapidly growing middle class and
Thailand and Vietnam. young populations that are digitally savvy,
ASEAN has some of the world’s fastest- there is also demand for higher standards
growing economies that offer a broad range of consumer goods, education and training
of opportunities for Western Australian services, and new technologies.
Western Australia’s trade relationship
with ASEAN
2012
Established the Western Australia
$26.4 billion $19.3 billion
2nd largest trading 2nd largest export market
Investment and Trade Office in partner in 2020-21 with 44% of Australia’s
Singapore; 1992 WA established a merchandise exports to
Investment and Trade Office in Jakarta ASEAN in 2020-21
Western Australian merchandise exports to ASEAN in 2020-21
41%
Iron ore
38%
Petroleum
15%
Gold
282,000 arrivals
from ASEAN countries
in 2019 with Singapore
the 2nd largest market
6
ASEAN countries were ranked
for visitors to Western
in the state’s top 20 export
Australia and Malaysia
markets in 2020-21:
the 3rd largest market
Singapore (5th)
Indonesia (9th)
Vietmam (11th)
Malaysia (12th)
Thailand (14th)
8,000+
international
The Philippines (17th) students in 2020
2 — ASEAN Market Outlook 2021-22
The Western Australian Government supports The relationship between Western Australia
local businesses pursuing opportunities with and Indonesia is also supported by the Western
ASEAN countries through the Department of Australia-East Java sister-state relationship.
Jobs, Tourism, Science and Innovation’s Invest and Established in August 1990, this sister-state
Trade WA Perth Hub and the Western Australian relationship provides Western Australian
Government’s Investment and Trade Offices in businesses with a competitive edge in
Singapore, Jakarta and Vietnam. This includes accessing opportunities in East Java.
advice and assistance to Western Australian
ASEAN countries are key markets under
companies looking to export to ASEAN countries
Western Australia’s Asian Engagement
or attract investment to grow their business. Strategy 2019‑2030 which supports:
The relationship between Western Australia » Maximising trade and investment
and ASEAN member country Vietnam is opportunities
supported by a memorandum of understanding
» Asia literacy and capability
(MoU) between Western Australia and Ba Ria-
Vung Tau, Vietnam’s most active industrial » People to people links
province and one of the region’s most » Business networks and communities.
prosperous. Signed in September 2020, the
The strategy provides direct support to Western
MoU strengthens the economic and cultural
Australian businesses through 2 programs:
ties between Ba Ria-Vung Tau and Western
Australia. The MoU has a focus on economic » The Access Asia Business Grants
development, education, and culture and fund initiatives to increase trade and
the arts and is supported by a detailed Plan investment with Asia.
of Action signed in October 2021. It provides » The Asia Business Capability workshops
Western Australian businesses with a support people in gaining the Asia literacy skills
competitive edge in accessing opportunities in required to develop sophisticated relationships
Ba Ria-Vung Tau and Vietnam as a whole. and capture more trade opportunities.
ASEAN Market Outlook 2021-22 — 3
ASEAN-Australia-New Zealand The key outcomes of MAFTA include the
Free Trade Area (AANZFTA) elimination of 99% of all tariffs by 2017 and
AANZFTA entered into force in January 2010, increased foreign equity limits in Malaysia for
delivering extensive tariff reductions and specified sectors, including education and
greater certainty for service providers and financial services. A general review of MAFTA
investors across ASEAN countries, Australia is being conducted in 2021.
and New Zealand. The leading opportunities for
Australian businesses from AANZFTA include Comprehensive and Progressive
the reduction and eventual elimination for Agreement for Trans-Pacific
at least 90% of all tariff lines, as well as more Partnership (CPTPP)
liberalised movement of goods through modern CPTPP is a free trade agreement between
and flexible rules of origin, simplified customs Australia, Brunei, Canada, Chile, Japan,
procedures and more transparent mechanisms. Malaysia, Mexico, Peru, New Zealand, Singapore
and Vietnam. The agreement entered into force
Singapore-Australia in March 2018 and delivers many benefits for
Free Trade Agreement (SAFTA) Australian businesses, including the elimination
SAFTA entered into force in July 2003 and of all tariffs on key agricultural products.
acts as a central pillar of Australia’s economic
relationship with Singapore, Western Indonesia‑Australia
Australia’s largest trade and investment Comprehensive Economic
partner in Southeast Asia. In addition to full Partnership Agreement (IA‑CEPA)
tariff elimination, the agreement provides IA-CEPA entered into force on 5 July 2020 and
increased market access for Australian creates the framework for a new era of closer
exporters of services, particularly education, economic engagement between Australia and
environmental, telecommunications and Indonesia. Opportunities for Western Australian
professional services. The Australia-Singapore businesses include improved access for key
Digital Economy Agreement entered into force agricultural products, allowance for higher
in December 2020, providing modernised trade levels of Australian ownership in joint ventures
rules that assist businesses and consumers to set up for the provision of mining services in
engage with and benefit from digital trade and Indonesia, and future liberalisation for Australian
the digital economy. universities opening a campus in Indonesia.
Thailand-Australia Regional Comprehensive Economic
Free Trade Agreement (TAFTA) Partnership Agreement (RCEP)
Since TAFTA entered into force in January RCEP negotiations were launched in November
2005, total two-way trade between Thailand 2012 between the Association of Southeast
and Australia has more than doubled. TAFTA Asian Nations (ASEAN includes Brunei,
outlines a commitment for the complete Cambodia, Indonesia, Laos, Malaysia, Myanmar,
elimination of Thailand’s significant tariffs the Philippines, Singapore, Thailand, and
across all sectors by 2025. Under TAFTA, Vietnam) and ASEAN’s free trade agreement
Thailand has also agreed to relax a number partners (Australia, China, India, Japan, New
of its restrictive conditions relating to visas Zealand and South Korea).
and work permits and to guarantee non-
discriminatory treatment of Australian On 15 November 2020, Ministers from 15
investments in Thailand. countries signed the Agreement. Australia
is working towards ratification of the RCEP
Malaysia-Australia Agreement in late 2021.
Free Trade Agreement (MAFTA) For further information on Australia’s free trade
MAFTA entered into force in January 2013
agreements with ASEAN countries visit:
and opens avenues for Australian goods and
services into the dynamic Malaysian market. ftaportal.dfat.gov.au/
4 — ASEAN Market Outlook 2021-22
ASEAN Market Outlook 2021-22 — 5
Trade and investment opportunities with ASEAN
An outline of trade and investment opportunities
with ASEAN is provided below, categorised
under Western Australia’s key industry sectors.
Each section also describes the Western
Australian Government’s actions to support
businesses pursuing these opportunities
in 2021‑22. The actions are a combination
of initiatives to assist Western Australian
businesses to develop their export capability
(sector-based) and activities that specifically
support trade and investment opportunities
with ASEAN countries (market-based).
The COVID‑19 pandemic has affected both
the opportunities that can be pursued and
the way the Western Australian Government
can practically support Western Australian
businesses. The Western Australian
Government has adapted its approach to best
support ongoing engagement with ASEAN
countries and will continue to adapt as the
COVID‑19 situation evolves.
Energy
Initially, the deployment of renewable energy
There is growing energy demand across
in ASEAN countries may be better suited to
ASEAN countries driven by rising incomes,
populations outside major cities. This will
industrialisation and urbanisation.
create opportunities for renewable energy
The transition towards low-carbon energy companies to enter ASEAN markets and for
sources will see more widespread adoption of delivery of training in maintenance and repair.
LNG and hydrogen in ASEAN energy systems.
The development of the regional LNG market Western Australian Government actions
and the construction of more integrated » Implement the Energy Transformation Strategy
liquefaction and gasification infrastructure to attract investment into Western Australia.
will progressively open new LNG markets » Facilitate projects to stimulate the
in ASEAN. For instance, Singapore is set to renewables industry in Western Australia,
become a key regional LNG bunkering hub, including implementation of the state’s
and Petronas of Malaysia is expanding its Renewable Hydrogen Strategy.
LNG portfolio. As ASEAN countries prepare
» Work with partners in ASEAN to attract
to gradually decarbonise their economies,
investment into downstream battery
the ASEAN offices will continue to explore
materials processing such as precursor-
possible regional linkages for Western
cathode active materials (CAM) and CAM
Australia on low-carbon energy.
manufacturing.
In the longer term, ASEAN countries are likely » Facilitate engagement between Western
to follow the global trend and move towards Australian businesses and ASEAN’s remote
cleaner energy sources, including renewables. and renewable power sectors.
6 — ASEAN Market Outlook 2021-22
» Connect Western Australian industry to » Explore opportunities to promote creative
investment opportunities in the ASEAN industries through artist exchanges as part of
LNG sector and facilitate business Western Australia’s MoU with Ba Ria-Vung Tau
meetings and seminars to promote
joint ventures and partnerships.
International education
» Continue to implement Western
Australia’s Lead Agency Framework to ASEAN countries accounted for 18% of
facilitate major projects and proposals international student enrolments in Western
in Western Australia. Australia in 2020. Malaysia is the third largest
market for higher education, while a number
» Develop virtual/hybrid events,
of other ASEAN countries (Vietnam, Malaysia,
conferences, seminars and fora that will
and Indonesia), rank highly for school
allow relevant decision makers in ASEAN
enrolments in Western Australia.
to engage with Western Australian
renewable energy proponents. Western Australia’s universities have also
established a presence in ASEAN countries,
Tourism, events including Curtin University’s campuses in
Singapore and Malaysia, and Murdoch University’s
and creative industries campuses in Singapore and Myanmar.
While COVID‑19 has disrupted international
There is potential to grow international
tourism, ASEAN countries still offer strong
student enrolments from ASEAN countries.
long‑term potential as a tourism market for
Indonesia and the Philippines in particular
Western Australia, particularly given their
have large and relatively young populations
proximity to the state.
and growing economies, creating a demand
In 2019, there were around 282,000 for education and training that cannot be met
visitors from ASEAN countries to Western entirely by domestic institutions.
Australia. As individual markets, Singapore,
Markets that have industries in common
Malaysia and Indonesia ranked second, third
with Western Australia present specific
and seventh respectively in the number of
opportunities. An example of this is
visitors to Western Australia in 2019.
education and training services for the
Ensuring the sustainability of the tourism mining and oil and gas industries in Indonesia,
industry in Western Australia will be a key Vietnam, the Philippines and Myanmar.
component of preparing for the resumption
Western Australia can also capitalise on its
of international tourism post COVID‑19.
safe handling of the COVID-19 pandemic to
Growing the number of international
market itself as an attractive destination for
students from ASEAN countries studying
students from ASEAN countries.
in Western Australia will also support future
tourism opportunities.
Western Australian Government actions
» Implement the tourism Reset Plan
2021 and 2022 to ensure industry
sustainability and drive international
tourism post the COVID-19 pandemic.
» Investigate opportunities for additional
direct flights between Western Australia
and the ASEAN region.
» Support key distribution partners in-market
to promote Western Australia as a premier
tourism destination.
ASEAN Market Outlook 2021-22 — 7
The education business development managers » Promote Western Australia as a favoured
based in Western Australia’s Investment and education destination within the ASEAN
Trade Offices in Jakarta and Hanoi work with countries, including by:
education agents across the ASEAN region to » collaborating with education agents
promote Western Australia as an education on relevant events and programs that
destination, including undertaking education promote the School Curriculum and
agent training and familiarisation tours. Standards Authority, universities, TAFE
institutions and public and private schools
Western Australian Government actions » exploring the possibility of the School
» Continue to implement the International Curriculum and Standards Authority
Education Recovery and Renewal Plan. offering the Western Australian pre-
primary to Year 10 curriculum to select
» Leverage the state’s international education
education institutions in ASEAN countries
offshore marketing campaign in market.
» exploring how Western Australia’s TAFE
» Work with education agents in the institutions can develop a footprint in
region to elevate the profile of Western Thailand’s education sector and the
Australia’s education sector and promote broader ASEAN region.
study programs offered by Western
» Support Western Australian universities
Australia universities and vocational
based in the ASEAN region to expand their
education institutions. student, academic and research links in the
» Gather intelligence to provide regular ASEAN region.
updates on in-market activities and
trends to inform Western Australia’s Mining and mining
international education policy and equipment, technology
ensure it is conducive for recovery.
and services (METS)
» Collaborate with Western Australian
Western Australia’s mining exports to ASEAN
education providers to undertake
are relatively small compared to the large
promotional activities and roadshows markets in northeast Asia. As the pace of
in Indonesia to assist universities and industrialisation and urbanisation increases in
pathway providers in student recruitment. ASEAN countries, there will be opportunities for
» Support international education Western Australian businesses to grow mining
consortia activities in Western Australia exports, particularly iron ore, nickel and copper.
and the ASEAN region, including Many ASEAN countries have significant mining
through the international education production. Indonesia and the Philippines are the
business development manager at the world’s leading producers of nickel, while coal,
state’s Investment and Trade Offices in copper, gold and tin are produced in large volumes
Hanoi and Jakarta. in the region. As demand for these commodities
increases and creates a need for mining operations
» Promote partnerships between the
to become more productive, opportunities for
relevant organisations in Western Western Australian METS businesses are likely to
Australia and Ba Ria-Vung Tau emerge. Specific opportunities are in areas such
Province, Vietnam in the education and as work safety, environmental sustainability and
training sector. corporate social responsibility.
8 — ASEAN Market Outlook 2021-22Western Australia has a well-established Health and medical
reputation in Indonesia as a global leader in the
mining and METS sector. In partnership with life sciences
Austrade, Western Australia’s Investment and With rising incomes, the demand for quality
Trade Office in Jakarta has developed a report health services is increasing across ASEAN.
on The Opportunity for Western Australian There are opportunities for Western Australian
METS in Indonesia. The report provides a organisations who provide health-related
roadmap for METS companies seeking access vocational training services to deliver hospital
to the Indonesian market. administration, patient management,
diagnostics and aftercare courses and best
Western Australian Government actions practice instruction. Other avenues for market
» Work with Austmine’s METS Digital Mining
entry include technology-enabled medical
Export Hub to market regional opportunities
consultations and health technology.
to Western Australia’s METS and petroleum
engineering and technical services industries. While the population of ASEAN as a whole
» Continue to streamline approvals processes is relatively young, some countries, such
and regulatory reforms to create a more as Thailand and Singapore, have ageing
attractive investment environment for the populations. There will be long‑term
mining industry. opportunities for businesses to provide
» Promote Western Australia as an option to innovative aged care products and services
fulfil mining industry skills shortages and to these markets.
provide expertise, including in offshore
exploration and extraction, decommissioning The Western Australian Government has
and autonomous technologies. recently established the Future Health
Research and Innovation Fund. The fund aims to
» Attract investment into critical minerals
drive health and medical research, innovation
projects in Western Australia by:
and commercialisation to better position
» facilitating understanding of Western Western Australia as a leader in research
Australia’s potential as a secure and and innovation, providing opportunities for
reliable supplier and processor of critical collaboration with international partners,
minerals (including rare earth elements) particularly with countries such as Singapore
» developing investment attraction and that have well‑established research and
trade promotion strategies for ASEAN. innovation sectors.
ASEAN Market Outlook 2021-22 — 9Western Australian Government actions
» Implement the Future Health Research and
Innovation Fund and develop and implement
communication tools to enable engagement
with current and potential fund stakeholders.
» Promote Western Australia’s health and aged
care skills, services and products, by:
» working with Western Australian aged care
service providers and education institutions
to expand links into ASEAN countries
» identifying potential investors and/or
partners in ASEAN for the Western
Australian aged care services sector,
focusing on design for aged care living,
enabling technologies and clinical care
» exploring opportunities for Western
Australian organisations to provide their
expertise in designing, establishing and
managing aged care facilities.
Primary industries
The population of ASEAN countries is large and for Western Australian businesses to provide
diverse, with demand for food and beverages agricultural technology and services to help
similarly large and diverse. ASEAN is already ASEAN countries increase the efficiency and
a leading market for Western Australia’s output of their agricultural sectors.
agricultural exports, with demand for a range
of commodities. For example, Indonesia Western Australian Government actions
ranks highly as a market for wheat and beef, » Increase visibility of Western Australia’s
Singapore ranks highly for dairy products and agrifood commodities and premium
fruit and vegetables, while the Philippines, products in ASEAN.
Malaysia and Vietnam are also important » Strengthen links with retailers, hotel and
markets for Western Australia’s primary restaurant operators in ASEAN to assist
industry exports. Western Australian agrifood industries to
access new market opportunities.
Western Australia’s reputation as a reliable » Further leverage Western Australia’s success
supplier of clean, safe and high-quality in exporting products such as apples,
food, and its existing agricultural trade carrots, meat and grain to the ASEAN
relationship, provides a platform to increase market.
supply to meet ASEAN’s growing demand
» Facilitate virtual business-matching
for premium agrifood products. This will
sessions and trade missions to promote the
require Western Australian businesses to
benefits of IA-CEPA and promote market
develop well‑organised supply chains between
diversification for the Western Australian
producers, distributors and retailers.
agrifood industry.
At the same time, agriculture remains a » Engage with food processors in ASEAN
significant industry in many ASEAN countries, countries to explore opportunities to supply
for both economic and cultural reasons. As quality commodity exports such as dairy,
food demand grows, there are opportunities wheat and barley from Western Australia.
10 — ASEAN Market Outlook 2021-22Western Australian business success with ASEAN
Cell-Media
Cell-Media was established in 2000 in Perth,
Western Australia as a provider of health,
safety and environmental training and
induction services to the mining, construction
and oil and gas sectors.
Over the past 2 decades, Cell-Media has
evolved into an e-learning development
studio, with clients such as BHP, Rio Tinto,
South32, Shell, BP, and Santos, relying on Cell-
Media to develop highly customised online
e-learning content to address their health, potential clients in the region, assisting the
safety, environmental and organisational company to diversify its client base.
learning requirements.
Most recently, the Singapore Office has
In 2016, Cell-Media established Cell-Media engaged with Cell-Media on a new project
eLearning Asia in Singapore to provide the involving aged care service providers in
same services to companies in Singapore, Singapore and Malaysia. The focus of this
Malaysia and Brunei. The Western Australian project will be the development of multilingual
Investment and Trade Office in Singapore training modules for both aged care workers
has introduced Cell-Media to a number of and facility providers.
Santanol
Santanol, a Western Australian producer
and distributor of pure sandalwood oil,
was founded in 2005 and started growing
sandalwood trees on a 370-hectare
area in Kununurra. Sandalwood is highly
prized for its aromatic wood and oil which
is used in fragrances, incense, creams
and traditional medicine. Santanol’s
sandalwood plantation have since grown
to 2,500 hectares, and the company now
operates 2 modern processing plants: a
primary processing centre in Kununurra,
where harvested wood is dried, sorted and
processed into wood chips; and a state-
of-the-art steam distillation plant in Perth,
where the oil is extracted and refined.
With the assistance of the Singapore that use essential oils. Santanol is now
Office, Santanol has recently secured actively securing expressions of interest
orders from Southeast Asian companies from other Asian countries.
ASEAN Market Outlook 2021-22 — 11Western Australian Government support
The Western Australian Government has Invest and Trade WA
been operating in the ASEAN region since
1994. Western Australia’s Investment and The Department of Jobs, Tourism, Science and
Trade Offices in Singapore and Jakarta have Innovation’s Invest and Trade WA Perth Hub
supported Western Australian businesses promotes Western Australia as a destination
for investment, provides a ‘one-stop-shop’ for
seeking to access trade and investment
incoming trade and investment enquiries, and
opportunities with ASEAN countries since
assists WA businesses to develop and expand
2012 and 1992 respectively. There are also
their export potential.
staff in Vietnam offering support to Western
Australian businesses looking to access trade Contact:
and investment opportunities across the
ASEAN region. investandtrade@jtsi.wa.gov.au
View Western Australia’s Asian Engagement
The Singapore, Jakarta and Vietnam offices
Strategy 2019-2030
has established a strong network of contacts
to support Western Australian businesses www.wa.gov.au/asian-engagement-strategy
in ASEAN. This includes close working
relationships with Australian embassies and Department of
consulates in the ASEAN region. Jobs, Tourism, Science
and Innovation
In 2020‑21, Western Australia’s International GOVERNMENT OF
Investment and Trade Office Network moved to
WESTERN AUSTRALIA
a regional hub model. The offices in Singapore,
Jakarta and Vietnam will continue to operate as
part of the ASEAN regional hub, providing the
following services:
» advice on ASEAN markets and specific trade
and investment opportunities
» advice on market entry strategies
» supporting in-market promotion and visits
» facilitating introductions to potential
customers and partners.
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