Investing in Southeast Asia: Seizing Opportunities in the Sustainable Economy
Last Updated 14 February 2024
With our headquarters in Singapore, we have gained first-hand experience working with global clients to establish a strong presence in Southeast Asia. One area that has captured our attention is the region's transition to a clean energy economy.
The pace of development in this sector is remarkable, offering diverse opportunities, such as the emergence of a green workforce and investment prospects in innovative clean energy projects across Southeast Asia.
The recent release of Australia's government report, "Invested: Australia’s Southeast Asia Economic Strategy to 2040," sets the stage for even greater prospects for businesses of all sizes in this dynamic region. This report highlights the increasing potential for collaboration between Southeast Asia and Australia, including in the green energy sector, and outlines a roadmap of recommendations to facilitate smoother collaborations.
This is the second article in our series delving into the opportunities in Southeast Asia. As Business Consultants in Southeast Asia, we find ourselves at the forefront of opportunities for Australian and European businesses to tap into this diverse and expanding market. There isn’t a better time for Australian businesses, big and small, to tap into this incredible opportunity.
Click here to read our first article in the series.
Opportunities for Collaboration
What is so exciting about this report is that it demonstrates the potential economic impacts of cooperation between Australia and Southeast Asian nations in solar power, battery storage, and electric vehicle industries, to name just a few components of the sustainable economy.
We have been seeing increasing opportunities with our clients through work in this area, and engaging with the recommendations in this report, the opportunities for cross-border collaborations are unprecedented.
If you would like to discuss how your business can seize the opportunities in Southeast Asia, please don’t hesitate to reach out for a chat.
Let’s take a closer look at some of the key opportunities to watch:
Solar Power
In the sphere of solar energy, Australia has a reputation for pioneering research and development, and in this growing sector, there is an opportunity to secure solar panel supplies and increase silica exports through suitable partnerships in Southeast Asia.
Additional opportunities include the establishment of joint research and development facilities, the sharing of knowledge and resources, and collaboration on large-scale solar projects.
The renewable energy sector is currently undergoing a fascinating transformation, fuelled by evolving government policies. It is crucial to emphasise the significance of transitioning to renewable energy sources in order to enhance energy supply stability and reduce dependence on imported energy in the region, especially considering the rapid growth of the population.
Cross-border cooperation can not only support the deployment of renewable energy in Southeast Asia but also boost Australia's own clean energy goals and create jobs within the sector.
Battery Storage & The Electric Vehicle Industry
As countries such as Malaysia, Thailand, Indonesia, the Philippines, and Vietnam become key players in renewable energy and the need for storing that energy in the region, Australian companies have the opportunity to supply valuable battery materials or develop innovations in improving energy storage.
Additionally, the growing electric vehicle industry and policy incentives in Southeast Asian countries for clean vehicles have the potential to create further opportunities for collaboration.
These strategic partnerships can help develop resilient and diverse clean energy supply chains, support critical projects, and establish a market for future commercial ventures.
By investing in clean energy manufacturing through initiatives such as the National Reconstruction Fund and the Australian Made Battery Plan, Australia can also expand the necessary supply chains, back crucial projects, and establish a marketplace for future commercial opportunities.
Building a Regional Green Workforce
As per regional consultations, the future green economy workforce needs are significant. An additional 5.5 million trained workers in the renewable sector alone will be required in Southeast Asia by 2050, and there will be more demand across grid infrastructure, clean energy supply chains, energy efficiency, and low-emissions technologies.
Australia will also have its workforce needs. An opportunity is present to build and share a regional green workforce through strategic investment in workforce training and dedicated labour mobility programmes for green skilled workers.
This scheme would enable skilled workers from the region to gain training and work experience in Australia before returning to their home country, benefiting all parties involved. A crucial part of this strategy involves the collaboration between industry and education and training providers to develop green qualifications.
Collaboration in Education and Training
The collaboration between industry sectors and education and training providers could play a pivotal role in nurturing green qualifications and meeting the demand for a regional, green, skilled workforce.
We find ourselves at a juncture where the possibilities of cross-border and industry partnerships hold the power to reshape the landscape of the market. For example, established industries can share their unique knowledge of the skills and competencies required, while education and training providers can design and offer relevant courses and qualifications for industries to tap into workforce opportunities.
Additionally, by providing work-integrated learning opportunities, internships and apprenticeships, students and workers can gain practical skills and experience in the green energy sector.
There is a huge opportunity to ensure the workforce is equipped with the necessary skills and qualifications to support the region's transition to clean energy.
Sustainable Finance
These initiatives will require investment in innovation in the region, with the potential for collaboration in sustainable finance, which has been gaining traction in recent years. Australia's expertise in green financing can be leveraged to support Southeast Asian nations in achieving their own sustainability goals.
This could involve sharing knowledge and best practices, providing technical assistance, and supporting the development of green finance initiatives in these nations. By working together, Australia and Southeast Asian countries can create a more robust and sustainable financial system that supports the transition to clean energy.
The opportunities in the green energy sector are exciting as they will not only benefit the region in terms of economic growth and job creation, but also support the transition to a clean energy future for both Australia and Southeast Asia.
At CLSB-Asia, we partner with clients not only in establishing businesses within Southeast Asia but also provide extensive networking avenues to ensure you receive comprehensive support throughout every phase.
If you're contemplating a market expansion or initiating a new venture in Southeast Asia, we would love to have a chat about how we can help. We also work with businesses of all sizes, including facilitating connections for small businesses that have the know-how with partners with the resources to help get started.
We look forward to partnering with you to tap into the opportunities in Southeast Asia.
Disclaimer: This article is grounded in the "Invested: Australia’s Southeast Asia Economic Strategy to 2040" report and reflects my personal interpretations and opinions as a thought leader in compliance in Asia.
Last Updated 14 February 2024