Australia’s Strategic Priorities and Challenges with Southeast Asia
This essay examines the Albanese government’s progress in enhancing relations with Southeast Asia and the ongoing challenges Australia faces in strengthening economic ties and balancing regional relationships with its U.S. alliance amid an unpredictable Washington administration. Originally published in Asia Policy, volume 20, number 4 (October 2025).
Context Before the 2022 Election
Prior to the 2022 election, improving ties with Southeast Asia was a top foreign policy goal for the Australian Labor Party, led by Prime Minister Anthony Albanese. While the former Liberal-National coalition had achieved some successes in the region, there was a perceived lack of direction. The Pacific Step Up policy had emphasized Australia’s immediate neighborhood, but Southeast Asia did not receive comparable attention.
Labor Party Commitments
- Appointing a special envoy for Southeast Asia
- Allocating A$470 million in new aid to the region
- Establishing a Southeast Asia office within the Department of Foreign Affairs and Trade
“Improving relations with Southeast Asia was at the top of the foreign policy to-do list for the Australian Labor Party.”
The Albanese government’s strategy aims to restore focus on Southeast Asia as a vital part of Australia’s regional engagement and to deepen economic partnerships, while carefully managing its alliance with the United States.
Author's summary: The Albanese government prioritizes revitalizing Southeast Asian relations through aid, diplomacy, and strategic offices, confronting economic and geopolitical challenges under shifting U.S. dynamics.