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Background Paper 9 1996-97
Australia's Asian Connections: A Stocktake
Foreign Affairs, Defence and Trade Group
Introduction
The Context of Australia's Involvement in Asia
Michael Ong
Population and Immigration
Adrienne Millbank
Australia's Foreign Relations with Asia
Dr Frank Frost
Education
Dr Kim Jackson
Australia's Trade with Asia
Tas Luttrell
Involvement of Australian States and Territories
in Asia
Derek Woolner
Investment Links
Dr Phil Hanratty
Asian Tourism in Context
John Kain
Information Technology and Telecommunications
Matthew James
Defence
Gary Brown
Endnotes
Appendix A - Immigration
Appendix B - Overseas Development Assistance
Appendix C - Overseas Students
Appendix D - Trade
Appendix E - Information Technology
The debate in Australia on Asian immigration and issues of race, which
has followed the Maiden Speech of the Independent Member for Oxley, has
prompted some strong responses from sections of the media throughout Asia.
This has in turn produced comments, particularly from business groups,
that the debate in Australia and its media coverage may damage Australia's
long term interests in the region.
An overview of these interests is the subject of this Background Paper
Australia's Asian Connections: a Stocktake, while the Backgrounder
Asian Press Reactions to Australia's Race and Immigration Debate,
which is released in conjunction with it, is a collection of reports,
opinion and letters on the debate in Asian newspapers. The Current Issues
Brief No. 16, Asian Immigration deals with the issue of the debate-the
role of Asian people in Australia's immigration program.
Over the last decade Australia's relationship with Asia has drawn attention
from an increasing number of perspectives. Much of this is the product
of some two decades of spectacular economic growth in many Asian countries.
This in turn opened possibilities for Australians to make contacts in
more areas than before. These possibilities have transformed Australia's
relationships with Asia, increasing the number of areas where the nature
of the relationship is important to Australia, yet blurring the fact of
Australia's previous and considerable involvement in the region.
The reaction of Australians has not been universally positive. The widening
of the issues that have come to be encompassed in the debate about Australia's
involvement in Asia has been seen by some to raise fundamental questions
about the nature of Australia and its people. The growing awareness of
the strength of 'Asia's' economic performance has become a perceived threat
to continuing employment or to working conditions for others. Much of
this ambivalence has surfaced in the debate on race and Asian immigration.
Yet the breadth and duration of the debate demonstrates the extensive
scope of those relationships that Australia has already established with
Asia. Similarly, the response to it in the Asian media indicates that
many Asians feel that they also have an interest in the development of
issues in Australia. Australia's Asian Connections: a Stocktake
provides a brief overview of Australia's involvement with Asian countries
in several important areas such as trade, immigration, telecommunications,
foreign relations and defence. Asian Press Reactions to Australia's
Race and Immigration Debate, a collection of current reporting in
the English language press of many Asian nations, gives an insight into
the information presented to the generally influential English-speaking
sections of Asian populations. Together, these publications are intended
to provide a summary of the of the nature of Australia's relationship
with Asia in each of the various areas of interest and a feeling for some
of the attitudes of Asian people on the immigration issue. They should
provide an understanding of the extent of those connections between Australian
and Asian which already exist.
A number of factors have encouraged the evolution of a wide and deep
network of linkages between Australia and the countries of Asia and it
is these which are the subject of this paper. As well as defence, foreign
policy, trade and immigration interests and issues, these linkages also
include growing investment, information and telecommunications interests
and, increasingly, the education and tourist markets.
Until the end of the 1930s, when an embryonic diplomatic service was
established, Australia's relationship with Asian countries, many not independent
of western tutelage at that time, were largely determined by its imperial
link with the British Empire. The period since the end of the Second World
War has seen a profound shift in Australia's relations with Asian nations
from those driven by defence considerations to those determined by economic
development. The Colombo Plan of the 1950s had a strong security objective,
promoting economic development as a foil against the perceived threat
of communism. The most significant of the early economic ties with Asia,
the Australia-Japan Commerce Agreement of 1957 was signed amidst controversy.
Yet, by the time the United Kingdom joined the (now) European Union in
1973, Australia's ties with the Asian countries were broadening significantly.
The ending of the White Australia Policy from the mid 1960s, and the
end of the Vietnam War, saw an increase in the Asian component of Australia's
migration program (see the companion paper, Current Issues Brief No. 16
Asian Immigration, by Adrienne Millbank). At the same time the
beginning of the phenomenal growth of the newly industrialised countries
of Asia (led by China, South Korea and Taiwan and followed more recently
by most of the ASEAN countries) triggered a new set of relationships.
Consequently, in the past two decades a number of Asian countries have
been transformed dramatically from being unstable and economically underdeveloped
to becoming dynamos of growth and stability, even though under political
systems which, from the Western perspective, are less than fully democratic.
Australia, too, has sought to reinvent itself not as an outpost of empire
or stalwart western ally, but a partner in the region which shared interests
with both the old world and the new. At the same time, a domestic shift
from the policies of White Australia to those of multiculturalism has
had a profound impact on Australian society which itself is still coming
to terms with some of the consequences. It is in this context that occasional
debates have arisen in Australia over immigration, racism, the government's
stand on human rights abuses in Asia and the attitude of Asian governments
to criticisms from outside the region.
These factors illustrate that the transition has not always been without
difficulties. Different values and approaches have caused misunderstandings
and occasional tensions. They reflect the different nature of political
systems and styles, despite in some cases, similarity in form. Although
it should be noted that relationships between some Asian countries themselves
are by no means harmonious there are differences in outlook between Asian
and Australian societies. Generally, Western democratic practices include
adversarial and confrontational forms of open debate and accountability
while Asian societies, still largely traditional, seek consensus and try
to avoid open confrontation. The rights of the individual and those of
the community are also stressed differently, with Asian societies giving
priority to those of the community.
In this context, Australian and other Western countries' comment on
human rights abuses, lack of democracy and related issues in for example
China, Indonesia and Burma, have been dismissed by their governments.
Some Asian countries, particularly China, Indonesia, Singapore and Malaysia,
have argued that these comments are hypocritical, and an unwarranted interference
in their domestic affairs.(1) However, some Asian countries have taken
steps of their own to safeguard their citizens' legal position, such as
Indonesia's Human Rights Commission while others have responded to more
democratic practices as in South Korea and Thailand. Nevertheless Asian
governments point to the record of Australia and other Western countries
at a similar period of economic growth and to current domestic problems
in the West which, inter alia, they perceive to be excesses of
individualism and democratic practice. In contrast, they claim that they
have provided stability and economic growth unparalleled in their history
in comparison to the slow growth and what they argue, is the social decay
of their critics' countries.
These differences of opinion are not surprising given the differing
political, cultural and ethical attitudes which exist both between the
West and Asia and within Asia itself. Nonetheless, as this paper demonstrates,
the linkages which Australia has already established with the countries
of Asia are already broad and of considerable importance to the partners
concerned. The current debate on Asian immigration may well have some
effect on further development of these links, yet their mutual benefit
provides an underlying strength. Although economics is not the sole dimension
of Australia's Asian connection, the $15.5 billion trade surplus that
this country enjoys with Asia does much to underwrite our way of life.
Equally, Australia offers much that is attractive to Asians. Despite occasional
disputes, the connections between Australia and the countries of Asia
offer such mutual benefits that they will inevitably strengthen.
Australia's population has been changed by immigration more than that
of any comparable country: 23 per cent of Australia's population is overseas-born,
compared with 15 per cent of Canada's and 9 per cent of the USA's. Forty
per cent of the Australian population are migrants or have parents who
were migrants. As at June 1995, 4.8 per cent of the estimated resident
population was born in an Asian country, and with their Australian-born
children, first and second generation 'Asians' comprised about 6 per cent
of the population.(2)
The Asian proportion of the immigration program has increased rapidly
following the arrival of large numbers of Indochinese after the end of
the Vietnam War, and source countries have become more diverse. Meanwhile
the proportion of migrants from the UK has declined. By 1985-86, Asians
comprised 35 per cent of all settler arrivals. Since the early 1990s Asians
have comprised about 40 per cent of all settler arrivals and over half
of our net permanent gain. By 1995 China (at 15 per cent) was the top
source country in terms of net gain, followed by the UK (11 per cent).(3)
Appendix A provides statistics on the leading ten countries for residents
of Asian origin.
While the Asian proportion of the total population is small, it is growing:
in 1976, the Asia-born comprised only 1.1 per cent; in 1985 2.5 per cent.
Projections of immigration, based on recent intakes and source country
balances, suggest that by 2031 people born in Europe (including the UK
and Ireland) will decline to 6-7 per cent of the population, and those
born in Asia will increase to 6-7 per cent. Projections based on ethnicity
suggest that by the year 2025 people of Anglo-Celtic background will make
up 62 per cent, people of European background 15 per cent, and people
of Asian background 16 per cent of the total population.(4)
Migration is changing in particular our largest cities: in 1991, over
20 per cent of the resident population of Sydney and Melbourne were born
in a non-English speaking country, compared with less than 5 per cent
in regional centres. Migrants from Asian countries in particular have
preferred to settle in our largest cities: in 1991 over 90 per cent lived
in cities of over 100 000, compared with 80 per cent of those born in
Europe and 58 per cent of the Australia-born. The proportion is particularly
high for some groups: 98 per cent of people born in Vietnam and 94 per
cent of people born in Mainland China live in major cities, mainly Sydney
and Melbourne.(5) (see Appendix A)
Trends in regional and social composition of immigration
Asia-origin migrants fall into two categories, with quite different
settlement experiences, depending on the migration stream under which
they have entered. Migrants in the skilled or 'economic' stream (independent,
business and employer-nominated) are generally highly educated, English
speaking, young (under 45), middle class, in higher status jobs and on
higher incomes than the Australia-born. They have come especially from
Hong Kong, Malaysia, Singapore, Taiwan and Indonesia. Humanitarian and
family reunion migrants have in general been low-skilled and (except from
countries like the Philippines and India) non-English speaking, and some
have experienced high and continuing rates of unemployment and welfare
dependency. They have come particularly from Vietnam, Laos, Cambodia,
the Philippines, and in recent years from Mainland China.
In 1995-96 the family stream comprised about 70 per cent of the migration
(non-humanitarian) program, and the skilled stream 30 per cent. The family
and humanitarian streams combined comprised about 75 per cent of program
migration. Asia-origin migrants comprised 52 per cent of skilled migrants
(and 85 per cent of the elite business category), 55 per cent of family
migrants and 17 per cent of humanitarian migrants. In the late 1970s and
1980s Asia-origin migrants were disproportionately represented in the
humanitarian, as well as the family and business categories.
Public attitudes and issues in immigration policy
Surveys of public opinion polls over the last 40 years show that public
support for immigration has steadily declined as economic conditions have
become less favourable, as the balance of the program has moved towards
lower-skilled family reunion and humanitarian migration, and as source
countries have become more diverse. As at other times of shifts in direction
of the migration program or economic downturn, opposition would appear
to have intensified during the 1990s, with concern over unemployment rates
during a recession, with the migration program heavily weighted in favour
of family migration, and with large numbers of recently arrived migrants
dependent on unemployment or other benefits.
A Longitudinal Survey of Immigrants to Australia showed last year that,
of recently arrived immigrants in the business migration stream, under
3 per cent were unemployed, compared with 85 per cent of humanitarian
entrants, 39 per cent of preferential family, (fiances, spouses and non-working
age parents), and 36 per cent of concessional family (siblings, nieces,
nephews and working-age parents) entrants.(6) Most recent opinion polls
show a majority of two thirds or more of respondents opposed to the current
rate of migration, including Asian migration, and especially family reunion
migration.(7)
There is a consensus among researchers and commentators that much of
the resentment towards Asian migration that has been expressed in recent
years has been a more general opposition to the economic and employment
impacts of all immigration in the context of high unemployment. It has
also been anticipated that, as with previous waves, initial suspicion
or hostility in the host community will disappear as the new groups become
part of the broader community, and their contribution as recognisable
as, for example, that of the Southern European Greeks or Italians who
preceded them.
The immigration and settlement context confronting the new Asian migrants
however is different from that experienced by earlier waves of settlers.
Unemployment levels are higher, and structural changes in the economy
have eliminated many of the unskilled jobs that earlier non-English speaking
migrants went into soon after arrival. There is no longer a labour shortage,
the need to increase the population is no longer unquestioned, and the
permanent migration program no longer has a single overriding or straightforward
rationale.
Regardless of the size of the permanent immigration program, people
from Asian countries are likely to comprise an increasing proportion of
both its skilled and family components. Also regardless of the size of
the permanent migration program, there is likely to be an increasing Asian
presence in our cities. People from Asian countries comprise a
growing proportion of the rapidly increasing temporary movements-of business
people, professionals, specialised workers, students, visitors and tourists-in
our region. If present trends continue these sorts of temporary movements,
both into and out of Australia, will be of more economic significance
than the permanent migration program.
The Asian region includes some of Australia's most important and sensitive
foreign relationships. It covers an area of major strategic significance
for Australia. Asia includes some of the world's largest and most dynamic
economies. For these reasons, successive Australian governments have seen
relationships with Asia as crucial: indeed, Foreign Minister Downer, in
his first major statement reaffirmed that 'close engagement with Asia
is the Australian Government's highest foreign policy priority'.(8)
Australia's Asian policies have involved the simultaneous pursuit of
many different interests on the part of the government, business and private
citizens. Four areas of policy interest have been of consistent importance:
promotion of a stable regional security environment, expanding trade and
economic cooperation, development assistance and promotion of a favourable
image for Australia. To pursue these goals, Australian governments have
developed a comprehensive range of bilateral relationships, and have supported
regional multilateral cooperation and actively participated in efforts
to expand it.
Political and Regional Security Issues
In the 1990s, in the early phases of the post Cold War era, the security
environment in East Asia has generally been seen as having improved substantially.(9)
The decline of confrontation between the former Soviet Union and the United
States has been accompanied by a widespread process of regional detente.
China in the 1990s has consolidated its relations with its neighbours
and normalised relations with all the countries in Southeast Asia (including
Vietnam). The Cambodia conflict was ended as a source of regional and
international dispute by the Paris Agreements in 1991 and Vietnam has
been able to expand greatly its foreign associations and became ASEAN's
seventh member in 1995. All of these developments have benefited regional
security and thus the context for Australia's own security.
Nonetheless, some sources of existing and potential tension continue.
The decline of the Soviet Union has been accompanied by uncertainty over
the roles of the major powers in the Asian region, especially the US,
China and Japan. China is undergoing a process of remarkable economic
growth at a time when there is uncertainty about the character of political
succession in the post Deng Xiaoping era and some of China's neighbours
are wary of its potential for increased influence in areas including the
South China Sea. On the Korean Peninsula the heavily armed but economically
weak and isolated North Korean regime continues to confront the South.
A number of territorial disputes-some of which lay dormant during the
period of the Cold War-could pose problems, as the recent controversy
over the Senkaku/Diaoyu islands (between Japan and China) has illustrated.
Australia has sought to play an active role in helping to build a secure
environment so that the process of positive economic growth can continue.
At the bilateral level, Australia concluded a security agreement with
Indonesia in December 1995 which is the first such formal security agreement
to be signed by Indonesia and which has provided the basis for consolidation
for Australia's most important bilateral relationship in Southeast Asia.
Australia has also upgraded the level of its dialogue on political and
security issues with two of its most important partners in Northeast Asia,
Japan and South Korea. Australia has sought simultaneously to emphasise
its commitment to engagement with China and its strong support for China's
involvement in regional and international cooperation (this emphasis was
reaffirmed in the meeting in late November between Prime Minister Howard
and President Jiang Zemin). Australia has also contributed to the efforts
led by the US to alleviate the problems posed to regional security by
the development of North Korea's nuclear industry: Australia is accordingly
giving financial support to the Korean Peninsula Energy Development Organisation
(KEDO), established in 1994.
At the regional level, Australia was one of the first countries to establish
a multilateral relationship with the Association of Southeast Asian Nations
(in 1974) and has been active as a dialogue partner. Australia has been
an active supporter of the ASEAN Regional Forum (ARF) since its initiation
in 1994. The ARF includes all the major powers with interests in East
Asia and in 1996 it was also expanded to include India. Although still
at an early stage of development, the ARF provides the basis for a process
of regular dialogue about major issues of regional security and its specialist
working groups offer a concrete way of expanding communication and confidence
among its members.
Economic cooperation
The countries of Asia include most of Australia's major trading partners,
making Australia's interests in expanding bilateral and multilateral cooperation
clear. Since the inauguration of the Agreement on Commerce with Japan
in 1957, Australia has been able to develop a wide range of agreements
on trade and investment with most of the countries of East Asia. These
agreements are regularly updated, as was the case with Malaysia in 1996
when a new trade treaty was concluded.
Australia is also seeking to help consolidate the basis for economic
growth in the Asian region through the Asia Pacific Economic Cooperation
(APEC) process. APEC is designed to support the pattern of regional economic
growth and integration which is already developing by reducing impediments
to trade and investment and seeking free trade and investment flows by
no later than 2020.
Successive governments have seen APEC as serving both economic and political
interests for Australia. In addition to its potential for smoothing the
flows of trade and investment, APEC provides a further avenue for dialogue
among the Asia Pacific's major players. APEC is the only grouping which
brings together the economies of China, Hong Kong and Taiwan. In addition,
APEC involves the United States in a process of regular discussion with
its major Asian trading partners and APEC's annual meetings at heads of
government level (begun in 1993 at Seattle) provide a venue for both useful
multilateral discussions and many valuable informal bilateral talks among
Asia Pacific leaders as well.
Development Cooperation
Development cooperation has been an important element in Australia's
foreign relations towards Asia since the inauguration of the Colombo Plan
in 1950 and particularly since the Jackson Report in 1984 which sought
to sharpen the focus of Australia's assistance programs on the Asian region.
As the pace of economic change in many Asian countries has proceeded,
the role of development cooperation in a number of relationships has,
quite appropriately, changed with a greater emphasis on areas including
human resource development and specialist infrastructure projects (such
as bridge renovation in Laos and Cambodia) and with more opportunities
available for the private sector, which delivers the majority of the Australian
aid program. Asian countries continue collectively to be the most important
focus for Australia's development assistance (see Appendix B) and are
likely to remain in this position for some time. Some countries remain
very poor (such as Cambodia and Laos) and some others, while experiencing
rapid overall growth rates (such as Indonesia and Thailand), still contain
sectors of substantial poverty which are appropriate focuses for Australian
assistance.
Australia's development cooperation program concentrates on contributing
to poverty alleviation, strengthening human security and promoting sustainable
economic growth. The main recipients of assistance in Asia in 1995-96
included Indonesia ($129.9 million), the Philippines ($74.4 million),
Vietnam ($63.5 million), China ($61.2 million), Thailand ($37.3 million),
and Cambodia ($32 million). Most assistance is provided through country
programs but Australia also supports many international and regional programs
of relevance to Asian countries.
Australia's Image as a Regional Partner
An important part of Australia's foreign relations efforts in Asia focuses
on the development of a favourable image for Australia as a regional partner
and participant in regional affairs. Australia's image, of course, largely
reflects the impact of the wide range of Australian policies in relation
to Asian countries and towards regional issues. In the past two decades,
several developments have contributed markedly to advancing Australia's
image, including our positive response to helping to alleviate the serious
impact of the Indochina refugee crisis in Southeast Asia in the late 1970s
and early 1980s, the process of economic liberalisation which has made
Australia's economy much more open and more involved with those of its
neighbours and Australia's extensive role in the diplomatic efforts made
to resolve the Cambodia conflict culminating in the Paris Agreements (October
1991) and the involvement in Cambodia by the United Nations in which Australians
played a prominent role.
The Australian government has also sought actively to promote Australia
through specific information programs and cultural exchanges, especially
since the Australia's efforts in this area were refocussed towards Asia
from the mid 1980s. Examples of these in the past year have included the
'Australia India New Horizons Program' in late 1996 which involved promoting
Australian capabilities in business, culture, sport, science and technology,
and the environment. A similar program directed towards Hong Kong was
'Celebrate Australia '96', a year long promotion sponsored jointly by
the Australian Government and the Australian Chamber of Commerce in Hong
Kong.
Australia's image can have an important bearing on Australia's capacity
to continue to build up regional institutional associations and involvement
in discussions and cooperation. For example, while Australia is a founder
member of both APEC and the ARF, it has not yet been able to gain access
to the Asia Europe Meetings (ASEM) which bring together the major countries
of Southeast and Northeast Asia with the members of the European Union.
As the Department of Foreign Affairs and Trade noted in its annual report
for 1995-96, Australia's failure to gain an invitation to the ASEM in
December 1995 was a disappointing development. The Department noted that:
'This demonstrates how the views of regional countries may frustrate the
achievements of important objectives, notwithstanding our best efforts'.(10)
Asian Students in Australia
In 1995 there were 69 232 private overseas students from Asian countries
studying in Australia. This represented 85.8 per cent of the total number
of private overseas students. The major source countries were Hong Kong
(12 143), Malaysia (11 121), Singapore (9475), Indonesia (8585), South
Korea (5981), Japan (4711), Taiwan (3924), Thailand (3533), China (2931)
and India (1800).
Of the 69 232 Asian students, 48 464 were in higher education, 5060
in other post-secondary courses, 8310 in primary and secondary education
and 7398 were undertaking English language instruction courses (ELICOS).
A breakdown of higher education students by field of study for the major
Asian source countries is shown in Appendix C. The figures refer to the
percentage of students from each country who are studying in each field
of study.
Economic Impact of Overseas Students
A recent study, The Labour Market Effects of Overseas Students,
commissioned by the Bureau of Immigration, Multicultural and Population
Research concluded that mainly as a result of overseas students and their
expenditure forming 'quasi-export income', their presence in Australia
increased the aggregate demand for labour by about 0.5 per cent.(11) In
terms of the higher education sector, the first-round employment creation
effect of overseas students was in the order of 560 equivalent full-time
staff. (12)
The study also identified net foreign exchange earnings as a result
of overseas students at about $1060 million in 1992. This estimate excluded
secondary students, who comprised about 11 per cent of overseas students
in 1995.(13)
Issues
The Ministerial guidelines issued under the Higher Education Funding
Act 1988 have acted to ameliorate some of the problems that may have
occurred with the rapid expansion of the numbers of overseas students
in recent years. Higher education institutions may only accept overseas
students if there is no displacement of Australian students, and they
must charge fees which at a minimum must cover the full cost of their
education. The Commonwealth has also imposed course quotas to prevent
the concentration of overseas students in particular courses.
Some concerns have been expressed over the maintenance of academic standards,
with suggestions that some universities have lowered minimum entry standards
in order to gain market share.
Funding Support and Benefits to Australia
In December 1988 the Government announced that from 1 January 1990 intakes
of subsidised overseas tertiary students (who were required to pay an
Overseas Student Charge which did not cover the full cost of their courses)
would end. From that date all new overseas higher education students were
required to pay fees equivalent to the full cost of their courses. In
place of the subsidy, the Government made available an increased number
of scholarships for overseas students through the Equity and Merit Scholarship
Scheme.
Since 1990 the Equity and Merit Scholarship Scheme has been replaced
by the John Crawford Scholarship Scheme, which was renamed the Australian
Development Cooperation Scholarships (ADCOS). There are now two streams
of in-Australia scholarships: ADCOS and the Australian Sponsored Training
Scholarships (ASTAS). ASTAS comprises the long-standing programs of scholarships
for individuals who have been nominated by their home governments. Study
programs range from short courses to PhD programs. ADCOS provides opportunities
to individuals who can apply direct without the need for government nomination.
All students undertake tertiary programs. Selection criteria ensure that
the training needs of the students' country of origin are met, that some
scholarships are targeted at disadvantaged groups, and that men and women
are offered equal numbers of awards. As at 31 March 1996 there were 4190
Asian students in Australia supported by these aid programs.
With regard to private overseas students, Commonwealth Governments have
encouraged higher education institutions to increase their income from
this source by supporting the promotion of Australian education services
overseas, particularly in Asia.
The Government's view is that international education produces many
long-term benefits for Australia, through contributions to continued economic
growth in the region and greater mutual understanding and personal and
business networks. Links between educational institutions in Australia
and those in the Asia Pacific region are also seen as important because
they create wider curriculum options, greater research opportunities and
more diverse career paths for Australian students.
The 1992 policy statement International education in Australia through
the 1990s noted the following benefits that would flow from the internationalising
of Australian education:
- it would ensure that Australians acquire the skills to meet the challenges
of a world with increasing interdependence of economies and peoples;
- encompassing international standards would assist the internationalisation
of the economy, in particular the labour market, and improve our international
competitiveness;
- the personal and institutional linkages developed through international
education would enhance subsequent trade and investment;
- drawing the best overseas students raises standards within Australian
institutions and widens the experiences and perspectives of Australian
students. As most international students in Australia come from Asia,
this enhances Australia's economic, cultural and political integration
with the fast-growing Asia-Pacific region;
- education and training links can develop into collaboration in research
and applied technology transfer. Postgraduate students from overseas
are an important part of Australia's research effort;
- educational aid involving the training of overseas students in Australia
or using Australian expertise to help develop the educational and training
systems of developing countries benefits recipients as well as improving
knowledge of and attitudes towards Australia.
While the Policy Statement concentrated on the benefits to Australia,
the fact that the internationalising of education is a two-way process
means that similar benefits will flow to all countries concerned.
Institutional Cooperation and Linkages
There have been significant efforts by Australian higher education institutions
to establish and maintain links with other institutions in the region.
In August 1994 participants from eleven Asian and Pacific countries (representing
46 universities) met at Macquarie University to formally establish a regional
network between higher education institutions. This conference was financially
supported by UNESCO and the Australian Vice-Chancellor's Committee (AVCC).
It was decided that a secretariat would be established to act as a clearinghouse
to underpin the network, and to build up a database of participating institutions
and collaborative projects being conducted with the aid of the network.
A recent report on International Links in Higher Education Research
(produced by Professor Paul Bourke and Ms Linda Butler of the ANU for
the National Board of Employment, Education and Training) noted that while
collaborations with 'traditional' partners such as the USA, the UK and
New Zealand have fallen, there has been a corresponding increase in collaborations
with the emerging science nations in the Asian region. The report suggests
that Australia should monitor changes in its international research links
to ensure that it takes full advantage of the increasing importance of
Asian-Pacific countries in international science.
Merchandise Trade
Australia's merchandise trade with Asia reached $74 billion in 1995.
The trade balance with the region was a healthy surplus of $15.5 billion.
On an individual country basis, Australia has a surplus with all of the
countries of Asia except China, Vietnam and North Korea (DPRK).
In 1995, 7 of Australia's 10 largest export markets were in Asia. Total
exports to Asia of $44.9 billion represented almost two-thirds of the
total merchandise exports. Growth of exports to the region has averaged
over 11 per cent per year-this is 3 per cent higher than growth in exports
to the rest of the world.
Within the region, trade with East Asia continued to grow strongly.
Exports to East Asia increased to $43.3 billion in 1995, that is 60.5
per cent of total merchandise exports. Similarly, imports from East Asia
rose to $28.7 billion or 37 per cent of total merchandise imports. The
composition of exports has progressively moved away from primary products
toward manufactures-from 60 per cent primary products and 22.6 per cent
manufactures in 1991 to 47.4 per cent and 24.1 per cent respectively in
1995.
Australia's trade with Southeast Asia grew by 20 per cent in 1995 to
reach $18.5 billion, made up of $11.5 billion in exports and $7 billion
in imports. Trade with this area has grown from 10.2 per cent of total
merchandise trade in 1991 to 12.4 per cent in 1995.
Trade with South Asia represented only 2 per cent of total merchandise
trade in 1995 but is growing strongly. Total trade rose 11.9 per cent
to $2.3 billion in 1995, with exports increasing 13.3 per cent and imports
9.1 per cent.
Trade with Regional Nations
Japan was Australia's largest trading partner in 1995. Japan was the
largest market for merchandise exports (23.1 per cent of total exports)
and the second largest source of merchandise imports (15.5 per cent of
the total). Japan imported goods worth over $16 billion from Australia;
among the main items were coal ($3 billion), beef and veal ($1.5 billion)
and iron ore ($1.3 billion) and non-monetary gold ($1.2 billion). In addition,
the Australian Wheat Board has signed a contract which will deliver a
minimum of 900 million tonnes of wheat (worth $400 million) to Japan in
1996-97. Major import items from Japan were passenger motor cars ($2.2
billion) and goods and special purpose vehicles ($1.4 billion).
Korea was Australia's fourth largest trading partner with total trade
reaching $8.3 billion, a rise of 28.4 per cent over the previous year.
Korea imported over $6 billion in Australian products, including non-monetary
gold ($1.4 billion), coal ($1 billion) and iron ore ($400 million). This
made Korea Australia's second largest market for merchandise exports,
supplying 8.5 per cent of total exports. It ranked ninth as a source of
imports and supplied 2.9 per cent of total imports, consisting mainly
of manufactures. The main products were passenger motor cars ($536 million),
woven man-made fabrics ($162 million), cathode valves and tubes and similar
components ($143 million).
In contrast to Australia's other main Asian trading partners, trade
with China slowed in 1995. The growth rate slowed from 18.4 per cent in
1994 to 12.9 per cent in 1995. China is Australia's seventh largest export
market and fifth largest source of imports. Total merchandise trade with
China was $7 billion in 1995.
Exports to China rose 11 per cent to $3.1 billion and imports 14.5 per
cent to $3.9 billion. The deficit in trade with China increased from $558
million in 1994 to $737 million in 1995.
Also listed among Australia's trading partners for 1995 were Singapore
($6.3 billion), Taiwan ($5.9 billion) and Hong Kong ($3.9 billion).
Australia is currently the largest exporter of coal to the Asian market
and this situation is expected to continue for some time as the number
of Asian coal fired power stations increases. There are good prospects
also for continued growth in exports of iron ore and aluminium, for which
regional demand continues to grow.
Initiatives in Food Products Trade
On 12 September 1996, the Prime Minister officially launched the 'Supermarket
to Asia' strategy aimed at increasing Australia's share of the rapidly
growing Asian food market. He announced the formation of the Prime Minister's
Supermarket to Asia Council which will include the Prime Minister and
four other senior ministers working with a group of industry leaders to
remove barriers to Australia's food exports to the region.
The Asian food market is estimated at US$600 billion, with about 12
per cent (US$70 billion) being supplied by imports. By the end of the
century it is estimated that the market will have grown to US$685 billion
and the portion supplied by imports to US$83 billion.
The Supermarket to Asia strategy commits A$10.2 million over three years
to projects such as developing streamlined national food safety and residue
regulations; reducing the cost of regulation in the industry and clearing
quarantine barriers into Asian markets.
Services Trade
Services trade with Asia shows a similar position to merchandise trade.
Australia has a surplus with all of its main Asian partners except China,
Hong Kong and Thailand. Overall, with its major partners Australia has
a substantial surplus.
In recent years, exports of services have grown very strongly and the
Asian countries have been major purchasers. The trend growth between 1984-85
and 1993-94 shows 8 of the major Asian export markets for Australian services
growing at more than 15 per cent a year and two of those at about 40 per
cent. On the other hand, only two of the group showed similar growth for
total imports of services and the rates for these were less at around
25 per cent.
Japan was the principal destination for Australian exports of services
in 1993-94, a total of $3.2 billion or 17.8 per cent of total services
exports. The stagnant Japanese economy slowed the growth in services exports
and in 1993-94 they grew at only 3.5 per cent, well below the trend rate
of 20.2 per cent. Imports of services from Japan grew at 6.1 per cent
per year over the decade but the surplus of $1.7 billion in 1993-94 represented
a significant reversal from a deficit of $223 million in 1984-85.
The ASEAN group has become a major export market for Australian services.
In 1993-94 exports to this group rose by 18.5 per cent to reach $2.8 billion,
above the trend rate of growth for the last decade (15.8 per cent). Australia
had a surplus of $382 million with ASEAN in 1993-94. Travel services have
been the main component ($1.4 billion in 1993-94) and have grown at 25
per cent a year over the last decade.
Singapore was the leading market in this group with $880 million or
31 per cent of total services exports to ASEAN. Malaysia ($554 million)
and Indonesia ($510 million) were also significant markets.
Imports of services from ASEAN slumped in 1993-94 after strong growth
in 1992-93 (25.1 per cent) and fell by 0.1 per cent. Other transportation
services are by far the largest component of services imports-37 per cent
of the total for the region. Singapore is again the largest partner.
Other important Asian markets for Australian services in 1993-94 were
Hong Kong, Taiwan, China and Korea.
Reflecting the importance of the newly industrialised countries of Asia
as purchasers of Australian exports, Australian States and the Northern
Territory have developed policy and administrative machinery to increase
the level of their involvement with these nations. These relationships
are most apparent in the fields of trade, education and culture, the latter
two particularly attracting political attention probably because they
are areas where state governments have wide policy scope.
Export Facilitation
Not surprisingly, export trade to nations in Asia attracts the greatest
attention from state governments. The importance of exports to Asian destinations
simply reflects the national situation, with all states being heavily
involved. Although NSW appears to be the state most oriented towards Asian
buyers, with some 75 per cent of its merchandised exports going to Asian
destinations, all states and the Northern Territory send around half of
their exports there. For all of them, at least seven out of their ten
largest export destinations are in Asia, with the preponderance of Asian
trading partners increasing. Japan is generally the primary destination
of exports. The states have also sought to have their capital cities chosen
as the location of headquarters for multinational companies operating
in the Asian region. NSW appears to have been particularly successful
with this policy, with over 66 per cent of the 134 regional headquarters
established in Australia being located in Sydney. Despite the comparative
reduction in Australia's trade with the United States and Great Britain,
over ninety per cent of these companies are American or British.
Most state governments have sought to promote their economic interest
through the activities of dedicated offices in the state bureaucracy and
through overseas trade posts. An exception to this process is the Northern
Territory, which has a department (the Department of Asian Relations,
Trade and Industry) solely concerned with developing relations with Asia.
Reflecting its geographic position, Western Australia became the first
state to open a trade office in India, in January 1996.
Bilateral Arrangements
A developing feature of the economic presence of state governments in
Asia is the negotiating of bilateral agreements with provinces or regions.
These tend to reflect the nature of each State's trading activities. The
Northern Territory, concentrating on developing relations with its Southeast
Asian neighbours, has agreements with the governments of Indonesia, the
Philippines, and Brunei, and with the China Council for the Promotion
of Trade, amongst others. An indicator of its activity is that it was
invited to join the East ASEAN Growth Area, which includes Brunei, Indonesia,
Malaysia and the Philippines, in 1994. Victoria has negotiated a Memorandum
of Understanding with the Indonesian Minister of Research and Technology
and the Ministry of Trade and Industry to open opportunities for exports
of technological expertise.
A precursor of this process, and one now well established, has been
'twinning' arrangements of various sorts such as sister-state arrangements.
NSW has sister-state relationships with the Tokyo Metropolitan Government
and regional governments in Korea, China and Vietnam. Queensland has similar
arrangements in Japan, China and Indonesia, Tasmania with Fujian province
in China and Victoria with Jiangsu (China) and Aichi (Japan). Western
Australia maintains links with Hyogo prefecture in Japan, East Java Province
(Indonesia) and China's Zhejiang province. In an innovative move Queensland
has established two 'region to region' relationships, involving local
councils from far north and southeast Queensland with provinces in Taiwan.
The roles of these twinning arrangements may sometimes be nugatory but
they are often useful mechanisms for promoting cultural and educational
exchange between Australia and Asia. The NSW relationship with Tokyo has
produced exchanges varying from athletes competing in long distance street
races to research scientists from Sydney University and Tokyo Metropolitan
University. The Western Australian arrangements have led to exchanges
of personnel, representatives of chambers of commerce and teachers and
students. The relationship with Zhejiang has been formalised under the
Western Australia-Zhejiang Economic Exchange Committee which is pursuing
the development of joint projects in building products, beef cattle, aquaculture,
wool processing, environmental management and technology.
Cultural and Educational Exchanges
Cultural exchanges are promoted by state government support of events
such as the Japan Festival in Sydney (and the corresponding Sydney Festival
in Nagoya), the Arafura Games in Darwin and Asia Week in Queensland, as
well as assistance for broader cultural events such as the Adelaide Festival
of the Arts. Government supported museums and art galleries are more active
nowadays in developing 'Asian' collections and often play a significant
role in assisting similar institutions in Asia to develop technical skills.
The states are particularly active in educational exchanges with Asia,
with a surprising number of formal agreements having been signed. The
South Australian Department of Education and Children's Services has a
Memorandum of Understanding with the Indonesian Ministry for Education
and Culture facilitating cooperation in education. This covers the more
traditional exchanges of personnel but also extends to promoting language
courses, cooperation on curriculum development and exchanging relevant
educational material. In 1995 the South Australian Multicultural Education
Coordinating Committee recommended funding for over 145 school-based projects
concerning the teaching of Asian languages. Queensland has educational
agreements with regional governments in Central Java, Shanghai, Hubei
and Saitama. Victoria has negotiated a number of Memorandums of Cooperation
in Education and Training with regional governments in Indonesia, Thailand,
the Philippines and Vietnam and a Cooperation in Language Teaching agreement
with China. The relationship between Western Australia and Zhejiang has
resulted in the joint production of text books and videos to educate children
in both countries about their sister state.
The Issue of National Coordination
The states are increasing their individual efforts to improve the access
of their industries to export markets. This, and the longer-term effects
of cooperative education and training programs with regions in Asia, will
ensure that state governments remain significant forces in the formation
of Australia's relations with the Asian region. In this lies the potential
to undermine the direction of national policy, either through a state
adopting a contrary direction or through the effects of competition between
individual states. The federal response was the establishment of the National
Trade Strategy Consultative Process which aims to coordinate federal and
State activities in trade promotion and negotiation. The practical development
of such mechanisms should be an important tool in ensuring that State
participation in the development of relations with Asia is a factor which
strengthens the benefits accruing to the nation.
International investment (capital flows which cross national borders),
takes two forms. Direct Foreign Investment (DFI) entails the establishment
or purchase of a controlling share of the ownership of businesses by foreign
interests. Portfolio and Other Foreign Investment (POFI) encompasses all
other types of foreign investment, including lending/borrowing and non-controlling
investments in businesses.(15)
Asian Investment in Australia
Japan has long been the third largest direct foreign investor in Australia,
behind the United States and the United Kingdom. Singapore and Hong Kong
are currently the ninth and tenth largest direct investors. Smaller holdings
of direct investments are held by China, Taiwan and South Korea. These
Asian investments have increased rapidly since the mid 1980s.(16)
In terms of POFI, Japan is again the third largest investor behind the
United States and the United Kingdom, while Hong Kong is the fourth largest
and Singapore is sixth. Again, the rate of growth has been rapid since
the mid 1980s.(17) In recent years, Japanese investors have been attracted
by the relatively high interest rates available on Treasury bonds and
other fixed interest investments in Australia, especially compared to
the historically low rates available in Japanese financial markets.(18)
Australian Investment in Asia
Perhaps surprisingly, Australian outward DFI in many Asian countries
seems to have fallen, in absolute dollar terms, in recent years. This
is particularly so in the case of Japan but is also true of Hong Kong,
Singapore and Malaysia. This follows a longer term trend of a falling
share of Australian outward DFI going into Asia since the mid 1980s. This
contrasts with the rapid growth of Australian DFI to North America, Europe
and New Zealand.(19)
On the other hand, outward Australian POFI has grown rapidly since the
mid 1980s, to both Asia and other regions of the world. Japan is the third
largest recipient of such investment, behind the United Kingdom and the
United States.(20)
Explanations
The expansion in investment links with Asia seems to have been generated
by a few central developments. First, the increase in Australia's current
account deficit(21) since the early 1980s has generated a corresponding
rise in foreign investment inflows needed to finance this deficit. Both
inward DFI and inward POFI have risen because of this, and Asian countries
have figured prominently in the supply of such finance.(22)
Second, the relaxation of Australia's controls on both inward and outward
DFI have encouraged such direct investments. Controls on outward DFI have
actually been very largely abolished as part of the deregulation of the
finance sector in Australia. Controls on inward DFI in Australia have
been pared back, especially over the last decade, in order to increase
productivity, intensify domestic competitive pressures and reduce reliance
upon foreign debt in the financing of the current account deficit.(23)
Relaxation of controls on both inward DFI and inward POFI by some Asian
countries has also occurred.(24) As yet, these do not seem to have much
encouraged outward Australian DFI to that region but are probably a major
factor behind the growth in outward Australian POFI.
Third, investment links have been intensified by the rapid growth in
trade and tourism between Australia and Asia. Some businesses have sought
to buy or establish their own input supply operations in order to better
'customise' such inputs to the needs of final buyers.(25) As well, increasing
exports have encouraged businesses to set up their own distribution and
marketing operations in export markets in order to capture more of the
profits generated by such sales. Growth in Asian overseas tourism has
also generated an outward flow of Asian DFI as Asian businesses seek to
put their superior knowledge of their own societies and customers to commercial
use overseas.(26)
Fourth, many types of microeconomic reform and structural change have
encouraged greater investment flows. Some Australian businesses in labour-intensive
manufacturing have reacted to tariff reductions in Australia by relocating
their operations to Asia in order to take advantage of the much lower
labour costs on offer in some countries there.(27)
However, reductions in Australian DFI in some Asia countries are, from
this perspective, somewhat mysterious. The fall in Australian DFI in Japan
is probably largely related to the prolonged Japanese recession in the
1990s and associated pessimism about future market growth there, while
disinvestment in Hong Kong is probably related to uncertainty about economic
and commercial conditions there after its return to China in 1997.
On the other hand, the relative fall in Australian outward DFI into
the ASEAN countries of Southeast Asia, and in some cases disinvestment,
is much more difficult to explain and has been the subject of considerable
study. This research has suggested that perceptions of long lags in achieving
profitability, growing awareness of enduring cultural and linguistic barriers
to doing business, disputes with joint venture partners, poor business
infrastructure, continuing regulatory restrictions by host governments,
and better commercial opportunities elsewhere have all had a negative
effect.(28) These considerations also apply to direct investments in China
and Vietnam.
However, rapid growth in Asia may, in the end, prove irresistible to
Australian businesses. For example, there exists survey evidence that
those Australian businesses which already have foreign operations expect
to rapidly expand their Asian investments in the next few years, in order
to take advantage of the expected rapid growth in demand there.(29)
Economic growth, structural change and rising wage levels in some Asia
countries have also forced businesses there to move towards more skill-intensive
and capital-intensive activities and production methods. Some Asian businesses
seeking to 'move up-market' and upgrade their technology base have sought
to take over technologically sophisticated Australian businesses to gain
greater access to the latter's technical skills and markets.
Issues of Debate and Controversy
The broad expansion in Australia's investment links with the rest of
the world has generated disquiet and protest by some sections of the Australian
community. For example, increased levels of foreign ownership and control
of Australian industry have been condemned by some as undermining both
the economic prospects for future generations of Australians, and the
national independence of Australia.(30) These critics conjure up images
of a future in which Australians merely would be rather lowly workers
in enterprises, with the economy controlled and largely managed from overseas
headquarters.
An element of the concern of some has been that these foreign owners
are no longer 'of European origin' (as in the case of British and American
owners) but are increasingly from other regions such as Asia. Such antagonism
could discourage future direct investment if potential Asian investors
thought it might restrict likely profits due to consumer resistance to
foreign owned ventures. For ventures oriented to export markets, such
considerations would not be important unless Australian workers were expected
to shun employment in such operations. This seems unlikely.
'Nationalist' concerns have been raised about rising levels of foreign
debt and dependence upon international capital markets. However, the less
visible nature of the identity of the foreign supplier of debt finance
has meant that the sourcing of much of this capital inflow from Asia has
not, in itself, generated much controversy or comment.
Almost all of Australia's foreign debt has been acquired by governments,
banks and business enterprises, with households directly holding almost
none of it. Thus, the latter have not been exposed to the spectre of foreign
creditors, Asian or otherwise, demanding that their loans be properly
serviced and repaid.
Outward Australian DFI also seems to have generated somewhat less criticism
than inward DFI. This may be because of its smaller levels, its less visible
'offshore' nature, or perhaps because it does not intrude upon, or threaten,
what many Australians think of as their own rightful heritage of owning
and controlling businesses which operate on Australian soil. Indeed, those
fearful of DFI within Australia could actually welcome outward DFI as
a means of increasing Australia's influence on, and leverage over, recipient
countries of such investments.
As well, the inflow of profits from such foreign investments have been
welcomed by many shareholders of such companies. Prominent Australian
companies such as BHP, ANZ Bank and the National Australia Bank now generate
a substantial portion of their total profits from their foreign operations.
On the other hand, there have been some fears expressed in the past
about the loss of jobs in labour-intensive manufacturing industries as
a result of the relocation of some such businesses overseas, and especially
to Asia. However, on the whole such complaints seem relatively rare today,
and are, in any event, much more frequently made about Australia's tariff
reductions and intensified import competition than relocation overseas
itself.
As well, such complaints have had their impact weakened by both the
limited extent of, and recent falls in, Australian DFI in Asia and, most
importantly, the rapid growth in Australia's manufactured exports in recent
years, both to Asia and to other regions of the world.
Tourism represents one of the fast growing sectors of Australia's economic/trading
engagement with Asia. The continuing economic prosperity of Asia, its
rapidly rising living standards and the targeted marketing activities
of the Australian Tourism Commission, have contributed to this region
becoming Australia's largest international tourism market.
In 1995-96, total inbound visitor arrivals were 3.966 million, with
Asia (including Japan) accounting for 2.017 million arrivals or nearly
51 per cent of the total. Key markets within the Asian region were as
follows:
Country Overseas Visitor Arrivals
1995-96(31)
(thousands)
Japan 813
Singapore 218
Korea 196
Taiwan 158
Hong Kong 152
Indonesia 146
Malaysia 122
Total Australian export earnings from tourism amounted to some $13.1
billion in 1995-96. On a simple pro rata basis, this suggests earnings
derived from Asian inbound tourism in the vicinity of $6.5 billion.
Major Sources of Asian Tourism
Although Japan remains Australia's most significant single tourism export
market in absolute terms, the rate of growth of this market (at 9.6 per
cent in 1995-96 over the preceding year) is somewhat lower than that of
other significant Asian markets such as Korea (with a corresponding growth
rate of 43.5 per cent) or Hong Kong (30.7 per cent). Other fast growing
Asian source countries include China, India and the Philippines although
these are growing from a comparatively smaller base. Overall Asian visitor
arrivals in 1995-96 (excluding Japan) grew by a substantial 20.4 per cent
which contrasts markedly with growth rates in our non-Asian markets such
as Europe (1.2 per cent growth in 1995-96 over the preceding year) and
the Americas (6.3 per cent growth).
Forecast Asian Tourism Levels
Looking to the future, Australia's Tourism Forecasting Council(32) predicts
that overall visitor numbers to Australia will double within the next
ten years with significant changes in the composition of the mix of inbound
tourists. In particular, it is expected that more than 60 per cent of
tourists will come from Asia (including Japan) by the year 2005 compared
with around 50 per cent at present. Although Japan is expected to remain
Australia's single biggest source market (the number of Japanese visitors
is expected to double over the next decade), the most dynamic markets
are expected to be those of Southeast and North East Asia. These markets
currently account for 29 per cent of all visitors; this proportion is
expected to grow to 43 per cent by the year 2005, representing an average
growth rate of 13 per cent a year. Korea is forecast to remain a major
growth market with over half a million Korean visitors forecast to arrive
annually by the year 2005. The growing interest in backpacker, sports
and cultural tourism as well as family holidays is expected to contribute
significantly to this growth.
Marketing Australian Tourism in Asia
The marketing activities of the Australian Tourist Commission are targeted
to meet the individual characteristics and differing degrees of market
maturity of the Japanese and each of the other Asian markets. The ATC's
strategies in relation to the Japanese market have been to focus on enhancing
Australia's image as a fun and friendly holiday destination while addressing
perceptions that the country lacks varied attractions and that tours are
relatively expensive. In recent years, Australia has been the number one
ranking as Japan's most preferred destination, ahead of Canada and Hawaii.
In other Asian countries, ATC marketing has used the theme 'Australia-The
Feeling is Magic' to successfully promote growth in Asian visitations,
with submarket strategies emphasising, for example, Australia's appeal
to 20-44 year olds as a destination offering modern, stylish cities and
unspoilt nature.
Tourism Policy Issues
Visa requirements have been a long standing policy issue for the inbound
tourism industry. Recent initiatives aim to simplify entry procedures
for visitors from certain Asian countries to Australia, so enhancing this
country's attractiveness as a tourist destination and as a place to do
business. Earlier in 1996, Australia's Electronic Travel Authority (ETA)
was introduced for travellers from Singapore (and the USA); under the
ETA, visitors are pre-cleared for single or multiple journeys to Australia
at the same time as booking the travellers' flights and other travel requirements.
The ETA is linked to travel agency and airline ticketing and check-in
systems. The ETA is now being extended to visitors to Australia from Japan.
Other moves to streamline entry requirements generally include the simplification
of visa issuance procedures in a number of key Asian markets such as Korea,
Hong Kong, Taiwan and Indonesia. In addition, a trial scheme known as
the APEC Business Travel Card is to be introduced from early 1997, making
it easier for Asian business people from the Philippines and South Korea
to travel to Australia. It will provide the equivalent of visa free entry
for frequent business travellers as well as streamlined processing at
airports. More APEC countries are to consider introducing the scheme after
the trial.
Policy moves by the Australian Government in the aviation policy arena
have also supported the rapid growth in Asian tourism in recent times.
The abandonment of the 'Single Designation Policy' whereby Qantas was
the only designated Australian flag carrier for international scheduled
passenger air services has enabled Ansett Australia to build up a growing
presence on key Australia-Asian air routes. Australia's approach in its
air service negotiations with other countries has helped develop a more
competitive aviation market and has fostered an environment in which the
aviation industry can respond quickly to market growth. New bilateral
arrangements have enabled increased capacity to be provided on Australia-Asia
air routes by non-Australian flag carriers as well as enabling Qantas
and Ansett Australia to increase international service capacity to key
tourism markets, particularly in Asia.
Tourism has an established profile within the deliberations of the APEC
forum and Australia has participated actively in supporting the aims of
the APEC Tourism Working Group (TWG) to foster tourism development in
the region. Indeed, Australia has taken the lead in successfully proposing
that an APEC TWG study be undertaken of the economic impact of tourism
in the Asia Pacific region. Australia also successfully initiated an APEC
study of the impediments to tourism development in the region; the aim
of this project is to improve the efficiency of tourism trade and investment
in the region.(33)
Factors Bearing on the Future of Asian Tourism to Australia
Major issues which could impact on the growth and sustainability of
Australia's Asian tourism export markets include:
- the strength and durability of the 'Asian economic miracle',
- the degree to which Australia can maintain its competitiveness in
the international tourism market by maintaining and enhancing the relative
quality of our tourism product; growth in tourist numbers can itself
reduce the appeal of the Australian tourism product if such growth is
not responded to wisely; tourism growth can actually expand the range
and quality of our national tourist assets if managed effectively,
- the degree to which Australia can maintain its competitiveness in
international tourism in the context of cost considerations, in particular,
Australia's relative inflation performance and movements in the Australian
dollar exchange rate,
- international trends in tourist product preferences and other lifestyle
considerations,
- the impact of major one-off events, in particular the Sydney 2000
Olympics, in sustaining and promoting interest in Australia as a highly
sought after tourist destination, and
- perceptions about the quality of the Australian tourism experience
at the inter-personal level, in particular, perceptions about relative
safety and crime incidence and the degree to which Australians are seen
as open and welcoming or as 'racist' and unfriendly to Asians.
This latter issue has received somewhat sensationalist attention in
some Australian media circles in recent months arising out of renewed
public and Parliamentary debate about Australian migration policy and
the desirability of continued Asian immigration in particular. While there
have been reports of groups of potential inbound Asian tourists being
'put off' by the racism and immigration debates and claims of 'abuse to
Asians' incidents, it is too early to say whether the Australian tourism
industry has sustained any significant, long term damage from the debate.
Probably a more significant immediate area for concern is the rapid
appreciation of the Australian dollar over recent times; a sustained,
long term strengthening of the A$ against the major Asian currencies could
have a significant dampening effect on the attractiveness of Australia
as a sought after destination for the tourists of Asia. Present indications
suggest a continuing appreciation of the Australian dollar over the medium
term, implying that the Australian tourist industry will face more difficult
challenges in the years ahead in maintaining inbound tourism growth rates.
Australia's innovative industries could reap considerable benefits in
the Asian region, especially in the information technology and telecommunications
(IT&T) sector. Asian infrastructure investments offer large opportunities
to Australia's IT&T industries during this decade. Booming economies
combined with shortages of telecommunications facilities, make the Asian
region the best place in the world for Australia to provide high technology
equipment and related services. As an English speaking nation that lies
in relative proximity to Asia and its time zones, Australia is in a good
position to enter Asian markets, especially if supported by appropriate
multilateral and bilateral policies and business network strategies. However,
it remains important for Federal Government support programs to adopt
a united and consistent regional approach. The IT&T sector accounts
for about 20 per cent of global and Australian trade, offering much opportunity
as we enter the 'Information Age'.
Early joint initiatives and demonstration programs in science and technology
have led the way but stronger bilateral and multilateral ties could lift
Australia's performance. Campaigns are underway to promote Australia regionally
as a research-driven, innovative nation that is well suited to participate
in the huge infrastructure projects now in progress throughout Asia. Australia
has promoted Asian interest in advanced telecommunications applications
through various S&T programs conducted by the CSIRO and the Australian
Agency for International Development (AusAID). Bilateral agreements have
also provided promotional opportunities while regional organisations also
offer opportunities for joint projects. The Market Australia campaign
aims to develop a research-driven, image-shifting program to improve international
perception of our innovative S&T.
Australia's IT&T Industry
In 1995, Australia's IT&T market was worth around A$34 billion,
with about A$18 billion of sales for information technology (IT) companies
alone. After Japan, Australia has the second largest IT&T market share
in the Asia-Pacific region. Australia currently exports around A$1.5 billion
in IT&T products and services annually, although it also imports six
times as much equipment in A$5.3 billion of computer systems and about
A$3.2 billion in telecommunications hardware. So IT&T remains as a
trade deficit sector here, as in most OECD nations. Around forty major
multinational IT&T corporations operate in Australia along with over
fifty major and many smaller indigenous local companies serving market
niches. They employ about 160 000 people in some 7500 companies. The industry
is extremely competitive, with research and development at six per cent
of turnover, but it still relies upon imports of technical equipment.
As information and communications (including telecommunications and radiocommunications)
technologies converge, some industry growth in multimedia and online services
will occur. Such examples of Australian IT&T industry activity in
Asia are many and varied, and our exports reached A$860 million in 1993.
There are many recent Australian IT&T success stories in Asia. Australia's
ERG Ltd has arranged for the supply of smartcards and 5000 cardreaders
for Hong Kong. MM Cables has won contracts to supply A$40 million of fibre
optic cable to Xinjiang in western China along with A$12 million of advanced
transmission equipment from Siemens Australia. JNA Telecommunications
has won A$7.5 million in contracts to provide data networks for Thailand.
Telstra has been very active in the region, although with mixed success.
Good opportunities also exist for increased exports by Australia's audiovisual
industries extending beyond current forms of film and television programs
to products made directly for Asian region markets. Current media industry
developments in Asia pose competitive challenges to Australia's creative
infrastructure, but we can still provide multimedia products, training,
consulting support, program sales and offshore production.
Asian IT&T Markets
Asia provides a complete spectrum of opportunities for IT&T competition
and development, but already has a well-developed electronics sector.
Trend analysis suggests that gross national product per capita will grow
faster for the Asian economies than for OECD nations, with a significant
growth in telecommunications revenue. Market-share estimates suggest that
the six economies, of Australia, China, India, Korea, Taiwan and Thailand,
will have a combined telecommunications revenue in excess of US$197 billion,
in 1991 prices, by the year 2010, compared to US$39 billion now. The accumulated
export potential for Australian suppliers over the period 1994 to 2010
should amount to US$163 billion, which is about equal to the domestic
market. Northeast Asia accounts for the largest share of 60 per cent,
and Southeast Asia some 27 per cent of this market potential for our telecommunications
products.
Expenditure on IT in the Asia-Pacific region grew from US$73.9 billion
in 1989 to US$77.8 billion in 1993. Japan accounts for US$60 billion (77
per cent) of the total in 1993, Australia, China, Korea and Taiwan, in
order, taking the other main market shares. While larger computer system
sales will decline, personal computer (PC) hardware should grow steadily
at around six per cent annually. Between 1989 and 1993, sales of packaged
software had steady growth that should continue, driven by a high penetration
of PCs and server systems. In 1993, sales of hardware in the region were
58 per cent of total IT revenue, software 12 per cent and professional
support services about 30 per cent. Even though our output will increase,
Australia's share of the Asia-Pacific IT market is forecast to decline
to the fourth largest by 2000. Appendix E shows Asian IT&T markets
and exports and imports, to indicate the breakdown of the industry's size
by country and market type. In November 1996, at the Asia-Pacific Economic
Cooperation forum, regional leaders endorsed a United States initiative
to remove all tariffs in the IT&T sector by the year 2000, with allowances
for some developing nations.
Despite such deregulatory actions, the Internet will not necessarily
have an easy entry into Asia, as inadequate infrastructure and wary governments
(for instance, Singapore's decision to control website providers and allow
only approved home pages) further hamper its expansion. Although growing
quickly, Asian Net usage lags behind overseas trends. Some Asian companies
have bold plans and tests underway to build interactive multimedia networks
for video-on-demand and cable services. Media reports of a recent survey
suggests that the cable market in 21 Asia Pacific nations could reach
93 million households by 2000, up from around 53 million in 1993. No doubt,
such systems will build upon the existing wide expertise available from
Asian IT&T manufacturers and service operators, through technology
transfer linkages and regional development initiatives.
New Asian satellite systems offer a plethora of services to the region
including Australia, merely requiring individuals or organisations to
arrange suitable ground receiving equipment. By 2005, Asia-Pacific satellite
operators could service 200 million households in a US$60 billion market.
In the future, such services may extend to personal mobile telecommunications,
in order to bypass local systems. As the region joins the information
superhighway, issues arise of industry and regulatory policy and information
content, plus consumer choice and protection. Asian nations must agree
on appropriate technical standards and infrastructure costs before our
industry can readily participate in the market.
Outlook
Australia's IT&T industry has had some early notable successes in
the Asian region, particularly in China, India and Indonesia. However,
it will need to search out more market opportunities in the Southeast
Asian region, especially in cooperation with Thailand and Vietnam if it
is to sustain its position. In the long term, half a dozen global corporations
will probably survive to dominate the computer and digital telecommunications
switching markets, given the high development costs in providing the range
of products involved. With such a high level of multinational investment
in Asia, Australian companies must seek out alliances there. This makes
the need for our companies to seek Asian niche market cooperation more
urgent but does not lessen the importance of continued stable trade arrangements
and favourable perceptions of Australian companies in Asia.
While East Asia produces advanced communications technology, the use
and integration of this technology lags behind that found in Western societies.
In fact, from one point of view it can be argued that the emergence of
the Asia Pacific Century does not link well with the 'Information Age'.
The new technologies will have a great effect on Asian cultural values,
whether introduced by the local market or acquired by its populace as
a result of global trends. IT&T technologies tend to empower individuals
and undermine authority while also challenging security. How Asians will
use them in the new age ahead and the resulting effects remains to be
seen.
Background
Australia has long recognised the importance of the areas to its north,
northeast and northwest to the maintenance of its essential security.
In the Cold War period Australia fought in the Korean War, put troops
into then British Malaya to help fight the communist Emergency (late forties-early
fifties), and into newly-formed Malaysia to help oppose the konfrontasi
of Indonesia's then President Sukarno (early sixties). And of course Australia
was a participant (1964-72) in the war in Vietnam. All of these activities
were presented as being designed to contain or eliminate potential threats
to Australia's security.
But in more recent times the emphasis of Australia's regional defence
relations has shifted from containment, where the region was seen
primarily as a source of potential or actual threats which needed to be
managed, to one of engagement. Under engagement the region is seen
more as an area of opportunity, particularly for active defence relations
with nearer neighbours. Underlying this policy is the assumption that
if Australia's region is secure in military-strategic terms, then so is
Australia. Therefore it is considered important that Australia make, and
be seen to be making, a positive contribution to regional security via
engagement. In practical terms this translates to substantial military
exercise activity, backed up as appropriate with agreements and regular
consultative processes.
In addition to the major activities discussed below, there is also some
small-scale exercise activity with Thailand and Brunei. Australia also
exercises occasionally with the British (eg, NORTHERN STAR/SOUTHERN CROSS
95-Australian and UK Army), and of course with its principal ally, the
United States. Beyond these activities, however, the main focus of Australian
security policy is now with several in the Asia-Pacific region.
FPDA Activities with Singapore and Malaysia
The Five Power Defence Arrangements (FPDA) were originally negotiated
in 1971 as a response to the British decision to withdraw the bulk of
their 'east of Suez' forces. The 'Five Powers' were Australia, Britain,
Malaysia, New Zealand, and Singapore. At the time of signing, memories
of Sukarnoist Indonesia and konfrontasi against Malaysia were still
fresh and there was uncertainty as to whether the Suharto regime would
be internationally responsible and, indeed, stable in the longer run.
As a result there was for many years a certain ambivalence in Jakarta
about FPDA.
In 1994 the partners created the FPDA Consultative Council-superseding
two separate bodies, one for air activities and another for land and sea
activities-to better integrate and coordinate FPDA exercising and consultative
procedures.
Australia has certain regular deployments and a limited permanent presence
under FPDA. RAAF Orion Long Range Maritime Patrol Aircraft fly
regularly from the Butterworth base in Malaysia to conduct maritime surveillance
operations. F/A-18 aircraft deploy on a regular basis for exercises. The
Army has a company at Butterworth on a three month rotation and RAAF has
a support unit at Butterworth for the Orions.
The FPDA runs the Integrated Air Defence System (IADS) which supports
the air defence of Singapore and Malaysia. An Australian commands the
IADS structure, if only because neither Singapore nor Malaysia would necessarily
wish the other to hold this position.
The key element of FPDA activity is the exercising of defence capabilities.
This was previously done through a regular series of discreet maritime,
air and land exercises. However, reflecting creation of the FPDA Consultative
Council, from 1995 FPDA exercises have become joint as well as
combined. ('Joint' exercises involve more than one service-eg,
a Navy and Air Force; 'combined' exercises involve more than one country.)
The STARFISH series involve the FPDA navies and has grown in importance.
In 1981, the first STARFISH exercise mustered less than 20 ships; STARFISH
94, by contrast, involved 29 ships (including 3 RAN FFGs and a UK nuclear
attack submarine) and 34 aircraft. STARFISH will now be integrated into
the new joint and combined series, as will exercise SUMAN WARRIOR (for
land forces) and the ADEX series (air defence). Australia has been a regular
participant in both these series. Exercise ADEX 96-2 involved 10 RAAF
F/A-18s, four F-111s, a C-130 and (reflecting the newly joint nature of
FPDA activity) an Army Rapier surface-to-air missile unit and a
missile frigate (FFG).
The integration of hitherto separate exercises implies no reduction
of commitment; on the contrary, it is rather a recognition of the need
to exercise military skills in a modern tri-Service context.
Bilateral activities with Singapore
Bilateral cooperation with Singapore has been increasing over recent
years. Lacking land space, Singapore has gladly accepted the opportunity
to use the Queensland Shoalwater Bay exercise area for land force exercises.
Its usage is on a user-pays basis and suits both countries very well.
The two Armies also conduct combined exercises at Shoalwater.
Singapore has participated in the annual PITCH BLACK air exercises held
in the Northern Territory. In August 1996 it joined the RAAF and USAF
for the latest PITCH BLACK activity. It was also a participant, with many
others, in the large-scale Exercise KANGAROO 95.
Exercise SINGAROO 95, conducted in the South China Sea, involved an
RAN Destroyer Escort (HMAS Swan), two missile frigates (Brisbane,
Darwin), the submarine Onslow and a RAAF Orion detachment
and several Singapore navy small craft plus an E-2C Hawkeye and
six A-4 Skyhawks.
Singapore is using facilities at RAAF Base Pearce (WA) for its trainer
aircraft activities under an agreement signed in 1993. The agreement stipulated
that by late 1995 Singapore should have awarded maintenance contracts
for its S211 trainer aircraft to Australian firms. There have been suggestions
(denied by Singapore) from the WA State Government that Singapore is evading
this provision by awarding contracts to Australian subsidiaries of Singapore-controlled
firms.
Talks have been held this year about Singapore basing 12 Super Puma
helicopters and about 250 personnel at the Army Aviation Centre at
Oakey in Queensland. Presumably this would be on a 'user-pays' basis and
may involve maintenance payments by Singapore.
More Singaporean activities may be shifted to Australia because Singapore
is under pressure from China to cease military activities it has conducted
on Taiwan. An advanced jet trainer station, involving 20 aircraft and
700 personnel (including dependents) is reportedly under consideration.
Bilateral activities with Malaysia
Australia and Malaysia have a formalised defence consultative structure
under which a great deal of mutual activity is managed. This ranges from
exercises through to Australian participation in bids for Malaysian defence
contracts such as the Offshore Patrol Vessel (OPV), for which Transfield
is a short-listed contender.
It is noteworthy that the defence relationship has successfully withstood
the difficulties (over the ABC Embassy program and over APEC versus
Malaysia's 'East Asia Economic Caucus') which have sometimes complicated
bilateral relations.
Exercise activity with Malaysia outside the FPDA framework is still
relatively limited, but the HARINGAROO series of ground force exercises
is an important element. This series exercises the rifle company deployed
to Butterworth under FPDA with elements of the Malaysian Army, to improve
inter-operability.
Malaysia was a participant in KANGAROO 95.
Bilateral activities with Indonesia
The conclusion of a Security Agreement with Indonesia in December 1995
is the most recent development in bilateral defence relations with Indonesia.
Never before has Jakarta signed such an agreement with any country. Thus
this Agreement represents a significant foreign policy gesture by Jakarta.
Its signature finally lays to rest Indonesian misgivings about the anti-Indonesian
genesis of FPDA, noted above. This Agreement imposes no military obligations
on either side: it is not a Treaty of NATO type, but rather an expression
of a deepening security relationship with our most important northern
neighbour. The issue of East Timor has been carefully decoupled from this
relationship by both sides and, in Australia, by both major political
parties.
The AUSINA series of naval exercises with Indonesia continues to develop.
AUSINA 94-95 consisted of two exercises in the Java Sea practising basic
maritime tactics and procedures. Indonesia is allocating more significant
forces to this series as it realises the value of the activity. AUSINA
94-95 PATROLEX consisted of two exercises related to maritime surveillance
and patrol procedures. In future it will be known as CASUEX.
Indonesian ground and naval forces participated in KANGAROO 95, but
the presence of Indonesian ground forces in Australia (especially the
controversial Indonesian KOPASSUS Special Forces units) continues to be
politically difficult because of the Timor problem and may be deterring
the expansion of combined ground force activities in this country. Nevertheless,
there was actually a small pre-K95 'familiarisation' exercise at Shoalwater
Bay in March last year, and Exercise NIGHT KOMODO/NIGHT KOOKABURRA 95
was a reciprocal activity with Special Air Services troops going to Indonesia
and Indonesian Special Forces coming to Western Australia. While there
they practised counter-terrorist techniques (anti-aircraft hijack procedures)
and conducted a parachute drop.
For air activity, there has been Exercise ELANG AUSINDO, which involved
RAAF and Indonesian Air Force elements practising dissimilar air combat
tactics in Indonesia. Exercise RAJAWALI AUSINDO exercised tactical troop
transport capabilities, also in Indonesia.
Conclusions on defence
The extensive (and still growing) list of co-operative military activity
with regional actors gives substance to the rhetoric of regional engagement.
There is a 'win-win' approach in that Australia is seen to be acting positively
to support regional security, and its regional partners receive the benefits
of operating with an advanced military force. It is noteworthy that in
the last decade the defence component of Australia's occasionally prickly
bilateral relationships with regional states like Malaysia and Indonesia
has survived untouched. This suggests that the several actors involved
have achieved a new level of sophistication in their relationships.
This has come to pass because governments have put into practice the
old adage that politics is the art of the possible. Realistic goals have
been set, and met, where unrealistic expectations would have produced
disappointment and, perhaps, disengagement. Australia does not expect
regional states to come its defence should serious threats arise; for
their part, it is understood that Australia does not propose (and lacks
the power) to become a military guarantor. But at the practical level
of partnership and cooperation, the policy of engagement does support
the proposition that if our region is secure, and we help it to be so,
then Australia's security likewise benefits.
- In 1919 the United States, United Kingdom and Australia, because
of their own internal or colonial policies, opposed a call by Japan
for a policy of non-discrimination to be included in the Covenant of
the League of Nations, see Antonio Cassesse, Human Rights in a Changing
World, Cambridge, Blackwell, 1990. pp.16-21. See also Yi Ding, 'Opposing
Interference in Other Countries' Internal Affairs Through Human Rights',
Beijing Review, 6-12 November 1989. pp.10-12.
- ABS statistics.
- Department of Immigration and DIMA Australia's Population Trends
and Prospects, and Siew-Ean Khoo and Charles Price Understanding
Australia's Ethnic Composition, DIMA, (forthcoming), Multicultural
Affairs fact sheets and statistical publications.
- DIMA Australia's Population Trends and Prospects, and Siew-Ean
Khoo and Charles Price, Understanding Australia's Ethnic Composition,
DIMA, forthcoming.
- Hugo, G. Understanding Where Immigrants Live, BIMPR, Canberra,
AGPS 1995.
- See Williams L. & Murphy J., 'Unemployment Rate Among Recently
Arrive Immigrants: data from the first wave of the Longitudinal Survey
of Migrants to Australia' in DIMA, Immigration Update, December
Quarter 1995.
- See especially AGB McNair Poll (a telephone poll of a nationwide sample
of 2063 people aged 18 and over) of 14-16 June 1995.
- Department of Foreign Affairs and Trade, Annual Report 1995-96, p.
49.
- For an overview see Frank Frost, The United States and East Asia,
Parliamentary Research Service, Research Paper No 18 1995-96, 21 December
1995.
- ibid., p. 50.
- Bureau of Immigration, Multicultural and Population Research, The
Labour Market Effects of Overseas Students, Canberra 1994, p. xiii.
- ibid., p. 104.
- ibid., p. 90.
- Information in this section drawn from Greg Chaikin and Deborah McNamara,
'State government activity in Asia', in Russell Trood and Deborah McNamara,
The Asia-Australia Survey 1996-97, Melbourne 1996. The authors
state that the research on many aspects of the connections between the
Australian states and Asia is at an initial stage and has yet to be
thorougly tested.
- This simple twofold classification is used by the Australian Bureau
of Statistics in their publications on foreign investment, Balance
of Payments and International Investment Position, Australia (5363.0).
- For example, the level of Japanese DFI increased at an average annual
rate of 25 per cent between 1983-84 and 1992-93 and at 30 June 1995
it stood at A$18.7 billion, or 14 per cent of total DFI in Australia:
Bureau of Industry Economics, Foreign Direct Investment in APEC:
A Survey of the Issues, Report 95/21, Canberra, Australian Government
Publishing Service, November 1995: Table 4.2, and Australian Bureau
of Statistics, Balance of Payments and International Investment Position,
Australia, 1994-95 (5363.0): Table 53.
- Australian Bureau of Statistics, Balance of Payments and International
Investment Position, Australia 1994-95 (5363.0): Table 53.
- Walsh, Max, 'Why Our Bonds are Great Cavity-Fillers', Sydney Morning
Herald, 26 November 1996. A major purchase of non-controlling shares
by Brunei in Macquarie Bank has also just been announced: Roger Hogan,
'Macquarie's Sultan can Swing Things', Australian Financial Review,
27 November 1996.
- Australian DFI in Japan, always quite small, seems to have been almost
wiped out: Australian Bureau of Statistics, Balance of Payments and
International Investment Position, Australia 1994-95 (5363.0): Table
54.
- ibid., Table 54.
- This is the excess of import payments, income payments and one-off
payments to foreigners over export receipts, income receipts and one-off
receipts from foreigners.
- This source of rising foreign investment levels in Australia has been
highlighted, in a critical fashion, by commentators such as former Governor
of the Reserve Bank of Australia, Bernie Fraser, 'Australia in Hock
?', Reserve Bank of Australia Bulletin, December 1995, pp. 6-8.
- Phil Hanratty, Inward Direct Foreign Investment in Australia: Policy
Controls and Economic Outcomes, Parliament of Australia, Parliamentary
Research Service, Research Paper no. 32, 21 May 1996, pp. 17-19.
- Industry Commission, Implications for Australia of Firms Locating
Offshore, Draft Report, Canberra, Australian Government Publishing
Service, June 1996, p. 249.
- This is clear in the case of Asian direct investments in Australian
agricultural and food processing industries.
- This is clear in the case of Asian direct investments in those Australian
tourist and accommodation facilities which are popular with Asians visiting
Australia.
- Bureau of Industry Economics, Investment Abroad by Australian Companies:
Issues and Implications, Report 95/19, Canberra, Australian Government
Publishing Service, October 1995, pp. 20-81.
- Ibid., pp. 24-26.
- Bureau of Industry Economics, Foreign Direct Investment in APEC:
A Survey of the Issues, Report 95-21, Canberra, Australian Government
Publishing Service, November 1995, p. 32.
- Michelle Grattan, 'Not Rocking the Foreign Boat', Australian Financial
Review, 1 October 1996. See also the arguments discussed in: Phil
Hanratty, Inward Direct Foreign Investment in Australia: Policy Controls
and Economic Outcomes, Parliament of Australia, Parliamentary Research
Service, Research Paper no. 32, 21 May 1996, p. 1517.
- Australian Tourist Commission, Annual Report, 1995-96, p. 36.
- Australian Tourist Commission, Annual Report, 1995-96, p. 9.
- Department of Industry, Science and Tourism, Annual Report, 1995-96,
Chapter 7.
Table 1: Asia-born resident population: Top 10 source countries,
1995
Birthplace Total Population % of Overseas-born
Vietnam 146 600 3.6
China 92 700 2.2
Philippines 91 800 2.2
Malaysia 91 500 2.2
Hong Kong 91 300 2.2
India 79 000 1.9
Sri Lanka 46 700 1.1
Indonesia 42 200 1.0
Singapore 36 400 0.9
Japan 25 300 0.6
Source:Australian Bureau of Statistics
Table 2: Proportion of net permanent gain from NE, SE & S Asia,
1990-91 to 1995-96
Year %
1990-91 65.3
1991-92 66.5
1992-93 62.7
1993-94 59.4
1994-95 48.7
1995-96 51.6
Source: Immigration Update DIMA June Quarter 1966 & 1996
Table 3: Distribution of population between major urban, other urban
and rural areas
by twenty largest birthplace groups, 1991.
Percentage
Birthplace Major urban Other urban Rural Total number
Australia 57.6 25.5 16.9 12 725 163
China 93.7 4.4 1.9 78 866
Hong Kong 93.3 5.0 1.7 58 984
India 87.7 8.1 4.2 61 606
Malaysia 89.5 7.1 3.4 72 611
Philippines 83.0 12.1 4.9 73 660
Vietnam 97.6 1.3 1.0 122 347
Source:Australian Bureau of Statistics 1991 Census
Top 15 AusAID Projects in ASEAN countries, 1992-93 - 1994-95
Project Country Company Value
($m)
PNG Police Phase II PNG ACIL Aust Pty 77.6
Provincial Water Vietnam Kinhill/ACIL Montgomery 34.2
Supplies Watson Australia
Mekong River Bridge Laos/Thailand John Holland Constructions 30.5
Construction
NTB Environmental Indonesia Kinhill/ACIL/IDSS 25.6
Sanitation and Water
Supply
Bah Bolon Project Indonesia Rural Management 25.5
International
Eastern Universities Indonesia WD Scott International 25.1
Project
Flores Water Supply Indonesia GRM International 22.3
and Sanitation
Pollution Control Indonesia Scott and Furphy 22.0
BAPEDAL Project
Agricultural Philippines GRM International 21.8
Technology Project
Land Administration Indonesia Land Administration Systems 21.8
Australia
Technical/Vocational Indonesia IDEA 16.8
Education Part A
Technical/Vocational Philippines SAGRIC International 16.5
Education Part B
Second Polytechnic Indonesia SAGRIC International 14.0
Project
Highland and Social Thailand AACM International 13.7
Development - Phase II
TOTAL 368.4
Note: These projects were awarded under Australia's bilateral
aid program and did not receive any DIFF/EFIC subsidies.
Sources: AusAID, Business Participation in AusAid's Aid Programs
1994-95, August 1995.
AIDAB, Business Participation in AIDAB's Aid Programs
1993-94, September 1994.
AIDAB, Business Participation in AIDAB's Bilateral
Aid Programs, 1993.
Higher Education Students by Field of Study for the Major Asian Source Countries
(percentage of students in each field of study)
South
Hong Kong Malaysia Singapore Indonesia Korea
Field of Study % % % % %
Architecture and 2.8 3.8 2.4 3.0 2.0
Building
Arts, Humanities 6.1 3.9 12.2 9.2 28.8
Business, Economics, 50.2 56.3 59.5 56.8 49.0
Administration
Education 0.9 0.5 0.9 1.7 1.2
Engineering, 7.7 12.8 6.6 11.9 3.6
Surveying
Health, Community 10.1 10.5 6.3 1.8 5.1
Services
Law, Legal Studies 0.3 3.3 0.4 0.5 0.1
Science 21.1 8.5 11.3 12.2 8.0
Total* 100.0 100.0 100.0 100.0 100.0
* Total may not add to 100 per cent due to the omission of non-specific
and non-award studies and some minor fields.
Source: DEET, Overseas Student Statistics 1995, p. 50-54..
Trends in Australia's Trade with its Asian Trading Partners
Exports 1993-94 Imports 1993-94
Trend Growth Trend Growth
% growth (%) % growth (%)
Country Total 1992-3 to 1984-5 to Total 1992-3 to 1984-5 to
$A m. 1993-4 1993-4 $A m. 1993-4 1993-4
China 287 6.3 21.1 335 3.4 13.2
Hong Kong 813 9.9 19.0 840 4.0 5.5
Japan 3 241 3.5 20.2 1 494 10.3 6.1
Rep. of 462 48.6 41.3 278 13.5 24.6
Korea
Taiwan 489 26.0 38.4 211 6.6 25.4
Indonesia 608 19.2 17.1 526 1.9 14.7
Malaysia 649 17.1 13.2 505 8.6 12.4
Philippines 157 8.3 8.1 154 -1.3 8.6
Singapore 1 037 17.8 18.1 914 -6.5 9.8
Thailand 334 20.6 16.4 336 0.6 13.0
Total 8 077 5 593
Australian Merchandise Trade With Asia, 1995
Country Exports Imports Trade Balance
($A'000) ($A'000) ($A'000)
Brunei 64,800 21,820 42,980
Indonesia 2,388,760 1,343,845 1,044,914
Malaysia 2,221,934 1,563,265 658,669
Philippines 999,074 231,871 767,203
Singapore 3,828,040 2,502,669 1,325,371
Thailand 1,735,761 1,014,492 721,269
Vietnam 188,038 286,834 -98,797
Laos 28,365 147 28218
Cambodia 20,541 477 20,824
Burma 12,645 6,511 6,134
India 1,103,552 553,370 550,181
Pakistan 192,551 124,815 67,736
Sri Lanka 112,983 51,837 61,146
Bangladesh 121,004 27,222 93,782
China 3,124,497 3,861,602 -737,105
Hong Kong 2,877,545 1,015,805 1,861,741
Taiwan 3,295,285 2,580, |
