If you’ve been keeping an eye on the headlines lately, you might have noticed a subtle but significant shift in the global economic winds.
While the world’s attention was recently captured by US President Donald Trump’s early exit from the Group of Seven summit in Canada—leaving Australian Prime Minister Anthony Albanese and other leaders waiting for a face-to-face that never happened—the real story for Australians might be what’s happening much closer to home.
For decades, Australia’s economic playbook has been pretty straightforward: look to traditional partners like the US and UK for trade, investment, and security.
But as Leigh Howard, CEO of Asialink Business, points out, it’s time for a rethink. The world is changing, and so are our neighbours.
Why the old playbook isn’t enough anymore
Australia’s relationship with Asia has long been built on the pillars of aid, development, and education. But the region has evolved.
Countries like Indonesia, Vietnam, and India are no longer just recipients of aid—they’re dynamic economies with burgeoning middle classes, modernising industries, and a hunger for new partnerships.
Howard says, ‘Many nations Australia is now dealing with have advanced and evolved. They are increasingly looking for economic partners, rather than aid donors, to co-invest in opportunities that will deliver mutual value.’
In other words, the days of seeing Asia as a risky, secondary market are over. The real risk now? Missing out on the next big boom.
The numbers tell the story
Let’s look at the facts. Only about 4 per cent of Australian exports go to the US, while more than half head to Asian markets.
Yet, when it comes to investment, we’re still sending about 30 per cent to the US and less than 12 per cent to Asia. That’s a huge mismatch—and a huge opportunity.
With the US showing signs of economic isolationism and global supply chains shifting, Australia’s future prosperity may well depend on how quickly we can pivot to our own backyard.
Spotlight on Indonesia: The sleeping giant next door
Take Indonesia, for example. It’s a G20 economy, just like us, but with a population of more than 270 million and a rapidly growing middle class.
Sectors like healthcare, technology, and education are booming. For Australian businesses and investors, this is a market that’s not just open for business—it’s hungry for it.
Yes, investing in emerging markets comes with its own set of challenges. But as Howard says, ‘We need to get more savvy. The greater risk is being left behind.’
What does this mean for everyday Australians?
You might be thinking, ‘That’s all well and good for big business, but what about me?’ The truth is, these shifts affect all of us.
A more prosperous, connected region means more jobs, more opportunities, and a stronger economy here at home.
It also means our super funds, investments, and even the products on our shelves could look very different in the years to come.
For older Australians, it’s a reminder that the world is always changing—and that staying informed and adaptable is the key to making the most of what’s next.
How can we get savvy?
Stay informed: Keep an eye on developments in our region. Read up on the economies of Indonesia, Vietnam, India, and beyond.
Ask questions: If you’re investing, talk to your financial adviser about exposure to Asian markets.
Support local businesses: Many Australian companies are already making inroads into Asia. Supporting them helps strengthen our economic ties.
Embrace change: Whether it’s new products, services, or cultural exchanges, being open to our neighbours can only benefit us in the long run.
The bottom line
Australia stands at a crossroads. We can stick with the old ways and risk being left behind, or we can get savvy, embrace our region, and ride the next big wave of prosperity. The choice is ours—but the clock is ticking.
What do you think? Are you excited or apprehensive about Australia’s growing ties with Asia? Have you seen the benefits (or challenges) of this shift in your own life or business? We’d love to hear your thoughts—share your experiences and opinions in the comments below!
Also read: Are mortgages about to go up? What Australia’s slowing economy means for you
