Australia has maintained good relationships with ASEAN countries. Owing to the fact that Australia is situated to the south of Asia, it appreciates the significance of the Southeast Asian region. Southeast Asia, geographically located at the central part of the Indian and Pacific Oceans, serves as a crucial growth hub. This positioning provides easy access to international trade channels, making it essential for Australia’s prosperity.
Despite its presence in the Indo-Pacific region, Australia faces the challenge of being geographically distant from its traditional allies, a legacy of its history as a former European colonial power. This has driven Australia to leverage its “only gateway” to Asia—Southeast Asia and ASEAN. For Australia, the region is not just its closest neighbor but also a vital area for supporting its national interests in economics, security, and geopolitics. Close ties with the region are both a necessity and an opportunity to bolster Australia’s position on the international stage.
While Australia’s relationship with ASEAN holds great potential, there are fundamental differences in history, politics, economics, and culture. Anthony Milner (2012), in his essay “Think Again about ASEAN,” notes that ASEAN is less prominent in Australian public discourse compared to countries like the US, China, or India. This sentiment was reflected in the enactment of the Immigration Act, known as the “White Australia Policy,” which demonstrated a distrust of Asia (O’Neil, 2018). Nonetheless, economic and geopolitical imperatives have compelled Australia to view Southeast Asia as an indispensable partner for its future.
For ASEAN, this relationship also requires strategic consideration. As an ally of the US and UK, Australia brings political and security interests that are closely intertwined with regional dynamics. ASEAN must navigate this relationship carefully, ensuring that cooperation with Australia—in economics, security, or diplomacy—does not compromise regional stability or its relations with other major powers.
As Australian Prime Minister Anthony Albanese said, “Australia and Southeast Asia are linked by our economies, by our common interest in a stable, peaceful and prosperous region, and by our profound human connections.” These remarks truly reflect the depth of the ASEAN-Australia relationship, which was further sealed with the adoption of the Comprehensive Strategic Partnership (CSP) in October 2021. The CSP marks a watershed in ASEAN-Australia relations, not just for the symbolism of enhanced diplomatic relations but also in extending cooperation to areas such as security, climate change, the digital economy, and health.
One such initiative is Aus4ASEAN: a flagship $154 million program dedicated to co-funding bilateral and multilateral regional initiatives under CSP with tangible outcomes. Its portfolio ranges from health security in a post-pandemic world and transnational crime prevention, to workforce skill building and energy security—issues such as marine protection—all part of paving the transition towards a circular economy of the region. This will go in tandem with the implementation of the AOIP, complementing ASEAN priorities such as the green economy transition, the strengthening of the digital economy, and regional economic integration.
For ASEAN, this cooperation opens the doors to dealing with newer issues like refugees and terrorism and also gives it strong economic benefits. For Australia, relations with ASEAN strengthen territorial security and geopolitical stability.
The ASEAN-Australia Comprehensive Strategic Partnership is the manifestation of a mutually beneficial relationship. Both partners, in this framework, will make an effort to meet regional needs and advance their presence in the fast-growing intricacies of the Indo-Pacific. The CSP is not only a way for Australia to expand its influence in Southeast Asia but also an opportunity for ASEAN countries to strengthen their domestic capacity in various sectors. On the other hand, the success of CSP will also depend upon both parties’ ability to keep a balance between national interests of Australia and ASEAN development needs.
Some of the ASEAN countries view the CSP as a means to build domestic capacity. Under this flagship program, there are Aus4ASEAN scholarships for 100 young ASEAN leaders to study in Australia. The program builds the capacity of the individual and contributes to the development of ASEAN priority sectors such as sustainability and the digital economy. Third, vocational skills development programs help ASEAN prepare a workforce that can address the challenges brought about by digital transformation and a green economy—two very important regional priorities.
The CSP also focuses on ASEAN’s transition toward a circular and digital economy by supporting the development of digital infrastructure, strengthening the region’s competitiveness through closer economic collaboration. As a country rich in resources, increased exports to ASEAN have benefited Australia in coal, professional services, tourism, and education services. A symbiosis is reflected where ASEAN gains technology and investment, while Australia increases its economic market in a strategic region.
The benefits of CSP are not purely economic. Southeast Asia is a region both strategically important and fraught with challenges for Australia from a security point of view. Waters like the Strait of Malacca and the South China Sea are the lifeblood of the Australian economy, which depends massively on the smooth flow of international trade. Instability in the region—be it border disputes, geopolitical tensions, or transnational crime threats such as terrorism, human trafficking, and drug smuggling—risks disrupting Australia’s global supply chains and national security.
Under the CSP, Australia works with ASEAN to strengthen regional security, particularly in the areas of maritime security and combating transnational crime. In this context, joint patrol programs and coast guard capacity building are very important to maintain water stability and to fight piracy and illegal fishing. Intelligence sharing also helps ASEAN countries to battle transnational crime, such as human and drug trafficking, making the region safe for economic development. The Australian government is helping to create a stable environment conducive to economic growth and development by supporting regional security efforts. Regional stability is of high strategic importance for Australia. Helping to secure Southeast Asia means that, for Australia, it is not only serving its own economic interests but also underpinning its place as a credible regional partner. Such commitment made here shows that Australia is very serious about realizing a peaceful, secure, and stable Indo-Pacific.
Geopolitically, Southeast Asia serves as a buffer zone for Australia against various external threats, especially from large countries such as China. Instability in Southeast Asia can directly impact the national security of Australia, making the investment of Australia in the defense and security relations with ASEAN very critical. Supporting ASEAN helps Australia to ensure stability in the region, which is good for the balance of power in the Indo-Pacific.
Australia’s geographic location away from the global power centers means that its closest and most relevant “geopolitical horizon” depends on the Southeast Asian region. This places ASEAN as a key partner in Australia’s foreign policy to balance China’s increasingly dominant influence in the region. It is with CSP that such strategic alliances could be pursued, not only for the safeguard of economic interests but also to create a better bargaining position in the face of geopolitical challenges.
From ASEAN’s perspective, the accrued benefits under CSP are numerous. The security cooperation affords greater capacity to deal with regional threats. Strong maritime security, counter-terrorism efforts, and combating transnational crime all help ASEAN countries build stability that underpins economic development. Regional stability also attracts more foreign investment and furthers sustainable development, which is a key need for ASEAN.
However, the success of the CSP depends on both sides’ ability to maintain a balance between Australia’s national interests and ASEAN’s development needs. While Australia seeks to maintain its influence in the region to counter China’s increasing dominance, ASEAN must ensure that this cooperation does not compromise its principle of neutrality, which is central to its interactions with major world powers.
As part of its “Pivot to Asia” strategy, the CSP emphasizes the importance of Australia’s engagement in the Asia-Pacific region. By strengthening ties with ASEAN, Australia is not only protecting its economic interests but also creating the foundation for a stable, peaceful and secure Indo-Pacific region. This is a reflection of both sides’ commitment to building a mutually beneficial relationship, while facing regional challenges together.
The Comprehensive Strategic Partnership (CSP) between ASEAN and Australia presents many challenges to help the development of the Indo-Pacific region. However, every partnership has its potential for asymmetry in the economic, security and geopolitical aspects. Such inequalities stem from the varying endowment bases of ASEAN and Australia and Australia’s strategic goals which at times serve its interest at the expense of ASEAN’s development.
Security dominance in Australia’s approach
Regional security continues to be one of the main pillars of the CSP. However, Australia’s overwhelming emphasis on maritime matters and geopolitical threats from China could weaken the CSP’s potential to become a truly balanced cooperation framework. For instance, Australia concentrates on maritime patrol cooperation and the building of coast guard capacity to address disputes in the South China Sea. These measures are certainly important for regional stability. However, such an emphasis serves Australia’s geopolitical interests in confronting China instead of helping to fortify ASEAN’s core socio-economic development needs. Initiatives in maritime security are rivaled by the investment done in the maritime sphere, such as military exercises and infrastructure development, which are directly geared to support socio-economic advancement in ASEAN.
ASEAN member countries respond differently to that approach according to their respective acute national interests. The Philippines and Vietnam welcome this security cooperation since it satisfies their pressing interests in the South China Sea. By contrast, Indonesia and Malaysia are apprehensive that such an overture could potentially pull ASEAN into competing circles dominated by the US and China. Meanwhile, Cambodia and Laos, who urgently require broader investments in education and infrastructure appear not to benefit materially from Australia’s maritime. Such a disparity in the distribution of benefits strengthens the impression that Australia’s greatest priority is the pursuit of strategic interests rather than support ASEAN’s equitable development.
ASEAN, as a bloc, often maintains its neutrality on the competing influences of big powers, be it the US or China. Thus, the preponderance of security issues within the CSP may impose a perceptive imbalance in that ASEAN feels exploitable in supporting Australia.
Economic Disparities in The CSP
There are also some difficulties for Australia in trying to dominate the direction of economic cooperation. For instance, though Australia is the sixth-largest investor in ASEAN, its investment is generally in the areas that support Australian interests — raw material and energy exports. ASEAN, on the other hand, needs more support to develop the manufacturing, technology, and education sectors, which are seen as the key to long-term economic growth.
This gap reflects a possible conflict between the rhetoric of CSP inclusiveness and the reality of its implementation. Such an imbalance may create skepticism among some ASEAN member states, which may feel that benefits from CSP are being enjoyed more by Australia than by ASEAN as a whole.
Addressing Challenges and Inequalities
ASEAN and Australia’s efforts to address challenges and inequalities through the Comprehensive Strategic Partnership (CSP) have been carried out with various concrete steps. For example, at the Second Annual ASEAN-Australia Summit in Phnom Penh on November 12, 2022, the leaders adopted a joint statement affirming the commitment to enhance the partnership while addressing regional challenges. In this document, Australia affirmed its support for ASEAN centrality and a rules-based regional order, and emphasized cooperation on regional security issues.
Despite the challenges, the CSP also offers opportunities to foster more inclusive cooperation. During the ASEAN-Australia Annual Summit in November 2022, the leaders of the two sides adopted a joint statement emphasizing commitment to address gaps and challenges. The ASEAN-Australia Plan of Action (POA) already includes a range of initiatives, including capacity building for ASEAN’s least developed countries and the promotion of inclusive growth.
However, the implementation of this policy requires adjustments to avoid being trapped in the dominance of Australia’s agenda. ASEAN must ensure that the socio-economic development agenda receives equal attention to security issues. In addition, Australia also needs to expand its focus on infrastructure development, technology and education, which can provide long-term benefits for all ASEAN member states.
As a positive example, Australia has facilitated a workforce training program in the information technology sector for ASEAN countries. This program is designed to improve the competitiveness of the ASEAN workforce in the global market. However, initiatives like this should be scaled up to cover more countries and sectors.
The ASEAN-Australia partnership is beneficial to both parties, but the levels of benefits vary, as analyzed through the relative gains concept. For instance, Australia is the sixth-largest investor in ASEAN and the fifth-largest contributor to revenue in the tourism sector. In return, ASEAN is Australia’s third-largest trading partner. More often than not, though, Australia’s gains from this cooperation are larger, using ASEAN as a strategic foothold to expand its access to the broader Asian market.
On the defensive side, Australia’s gains from ASEAN are not as large as those through economic cooperation. However, ASEAN gains less in both areas, and the cooperation is strategic for ASEAN, where Australia’s position as a strategic partner adds value in terms of regional stability and security.
A truly strategic relationship should be win-win, catering to both parties’ interests in an equal manner. Australia must realize that a truly strategic relationship must rest on an equilibrium between security interests and socio-economic development. In the long run, Southeast Asia, with its exploding population and rapidly expanding middle class, holds immense potential in trade, education, and technology. If these issues are paid more attention to, then Australia can strengthen its relations with ASEAN without creating unnecessary geopolitical tensions.
Through the CSP, ASEAN and Australia have a great opportunity to create an inclusive and sustainable model of strategic cooperation. Success in this framework depends upon the ability of both parties to keep a balance between their respective national interests and the needs of the region. Australia should concentrate more on supporting the economic development of ASEAN in infrastructure, education, and technological development. On the other hand, ASEAN should use this partnership to strengthen its internal competitiveness and make sure that the benefits of cooperation are fairly distributed to all its member states.
More importantly, CSP has to be configured in a way to address non-traditional challenges such as climate change, food security, and disaster management. Through this holistic approach, the partnership will not only create a broader impact regarding benefits for both ASEAN and Australia but also regarding stability and security in the Indo-Pacific.
As supported by their Plan of Action, which talks of enhanced cooperation on many strategic areas, the flexibility in a strategic partnership makes it possible to accomplish national interest. Australia’s presence at the forefront of ASEAN members’ relations on many fronts shows the enormity of gains that it renders.
Through the CSP, ASEAN and Australia have shown a collective commitment to the confrontation of challenges and, at the same time, to the exploitation of opportunities in the Indo-Pacific region. Success under this arrangement will not depend solely on program initiatives but will also be gauged by how the both sides can balance national interest with regional needs. Reaching complementarity, this CSP can become a template for strategic cooperation that contributes to stability, security, and common prosperity.
Over the next 10-20 years, the CSP has the potential to foster a more symbiotic relationship if Australia successfully balances its focus on security and socio-economic development. Investments in transitioning to a green and digital economy can lay the foundation for a mutually beneficial relationship. For example, projects that support the development of smart cities and digital economic integration can help ASEAN achieve its sustainable development goals while enhancing the region’s competitiveness.
However, if gaps in CSP implementation persist, this could deepen ASEAN’s dependence on Australian development assistance, risking an asymmetrical relationship where Australian interests dominate. A truly strategic relationship should be based on a balance between the national interests of both parties.
CSP is a cooperative partnership that strategically links ASEAN to Australia and promises to greatly strengthen economic, political, and security ties on both sides. Australia sees ASEAN as an important entry point to the Asian market while ASEAN perceives Australia as a strategic partner in promoting well-balanced stability within the region.
The criticism that cooperation with ASEAN is controlled by Australia clearly implies that a fairer proportion for each is needed from an equitable sharing of benefits. Opportunities for CSP to prove an all-inclusive and sustainable cooperation model will readily arise should issues such as corruption, investment barriers, and lack of infrastructure in ASEAN be addressed. CSP, through its holistic approach to non-traditional issues like climate change, food security, and disaster management, can spin off positive impacts that will not only benefit both ASEAN and Australia but also contribute to stability and prosperity in the Indo-Pacific.
CSP shall, however, require commitment and a common vision if it is to achieve equilibrium between individual national interests and regional needs. That balance provides CSP with the opportunity to better become one of the main pillars of stability and common prosperity in a rapidly dynamic region.