December 21, 2022
Mr Nicholas Moore
Special Envoy for Southeast Asia
c/- Southeast Asia Economic Strategy Section
Office of Southeast Asia
Department of Foreign Affairs and Trade
Dear Mr Moore,
The Group of Eight (Go8), comprising Australia’s leading research-intensive universities, welcomes the opportunity to provide this submission to the Government’s Southeast Asia Economic Strategy. Please note that this submission represents the views of the Go8 network, and member universities may choose to make their own individual submissions.
Please also note that the Go8 consents for this submission to be published in full.
Australia’s future security and prosperity is inextricably linked to Southeast Asia and the wider Indo-Pacific region. That is why it is essential to develop strong and enduring relationships with our key neighbours across the region. The Go8 welcomes the Government taking a long-term approach to Australia’s engagement with Southeast Asia, and, as with the Varghese India Economic Strategy, strongly believes education and research must be a core pillar of Australia’s strategy.
“As Australia faces significant economic and geostrategic challenges, a strong economy will be an important contributor to our national security[1].” Senator, the Hon Don Farrell.
Despite the many difficult challenges facing our region, Australia approaches the next two decades of engagement in Southeast Asia from a position of strength. As a bloc, ASEAN is one of Australia’s top trading partners and in 2021, our two-way investment with ASEAN reached almost $250 billion. Australia’s trade with ASEAN countries is now greater than our two-way trade with Japan and the United States. [2]
Our strong trade links are also supported by deep and long-standing people-to-people connections. This includes the Go8’s well-established education and research partnerships with our ASEAN neighbours, forged over decades of engagement. In addition to university-to-university partnerships, the Go8 has also held successful dialogues with the ASEAN Heads of Mission over the two years. Importantly, our education and research partnerships not only encourage economic integration but also support Australia’s soft-power diplomacy effort, helping to build a more resilient and stable region. In an age of increasingly complex geostrategic competition, the contribution our education and research partnerships provide to regional security should not be underestimated.
Whilst we have built a solid reputation in the region and have a strong foundation for engagement, we should not take our relationship with Southeast Asia for granted. As we emerge from the global pandemic, competition within the international education market has becoming increasingly tight. This includes competition from our traditional competitors, such as the US, UK and Canada but also emerging competitors such as Japan and China. The massification of education through online learning, driven in part by new technologies, has also increased the competition for high-quality international students and researchers. In this new era of competition for global talent and fast-changing global markets, Australia cannot afford to rest on its laurels – we must push to the front.
For these reasons, the Go8 presents the following key recommendations for the Government’s Southeast Asia Economic Strategy to 2040:
Key recommendations:
- Research and education to be included as a core pillar in the Economic Strategy.
- That the Australian Government invest in Australian researchers to participate in global research programs and exchanges.
- That the Australian Government expand the Australia-Singapore Green Economy Agreement to facilitate joint research and skills development amongst other ASEAN members.
- That the Australian Government consider how bilateral and regional economic agreements could be leveraged to support mutual collaboration in science, research and innovation.
- That the Australian Government fund a scholarship program for ASEAN PhD students to conduct research in areas of shared national priority.
- That the Australian Government expand the scope of the New Colombo Plan to include postgraduate coursework and higher degree research students.
- That the Australian Government continue to invest resources to improve visa processing times for Southeast Asian students and academics.
- That the Australian Government support Go8 universities to assist selected ASEAN countries in capacity building projects.
- That the Australian Government address visa policy settings to improve the retention of Southeast Asian graduates, particularly in areas of Australian workforce need.
- That the Australian Government establish a High Potential Individual visa class to attract high-quality Southeast Asian students and researchers.
- That the Government Fund strong and effective in-country engagement.
- That the Government work with universities to develop diverse methods of delivery to support wider access to education.
1. Where are the greatest opportunities to deepen engagement between Australia and Southeast Asia in the education sector?
Australia and Southeast Asia share more than just location in the Indo-Pacific region – we also face many of the same challenges, including recovering from the COVID-19 pandemic, addressing the climate crisis, transitioning to clean energy economies, and ensuring peace and stability in an increasingly complex geopolitical climate. Australia and Southeast Asia are ideal partners in building a shared regional future and our interests will be best served by working together. Central to this cooperation is joint research.
We have a strong base upon which to further grow our joint research. The number of co-publications between Go8 universities and ASEAN nations has increased by 60 per cent across the five-year period, from 2,857 in 2017 to around 4,579 in 2021.
The most common fields of research were Clinical Medicine (25.5%), Engineering (8%), Social Sciences (7.7%), Physics (6.3%) and Environment/Ecology (5.6%).[3]
The Go8 has always stated that quality research knows no borders and in the current landscape, this has never been more important. The COVID-19 pandemic demonstrated exactly what is possible when researchers around the world work together on complex problems.
Global research partnerships foster a vital trade of knowledge, allowing countries to leverage their resources and expertise to advance our understanding. Joint research partnerships also help to keep dialogue open between countries all the while delivering important social and economic benefits.
Enhancing Strategic Research Partnerships
When it comes to building and strengthening research partnerships in Southeast Asia, Australia has a number of advantages. The first is Australia’s location in the region and the second is our globally recognised research performance, underpinned by our prestigious world university rankings. The Go8 has seven of its universities ranked in the top 100 in the world; our universities undertake 70 per cent of Australia’s university-based research and collectively, we invest more than $7.2 billion in research every year. Go8 research excellence is a national strength which should be leveraged to advance Australia’s engagement in the region.
Go8 universities are globally engaged and have forged strong education and research partnerships in Southeast Asia over many decades. Our universities have established collaborative research initiatives, student exchange programs, and some universities host international campuses in Southeast Asian countries. These partnerships provide opportunities to strengthen regional engagement and ultimately, support our national prosperity and security. Examples of our global research partnerships are included below:
Case studies:
ClimateWorks Centre (CWC): CWC is a not-for-profit founded by Monash University and the Myer Foundation to bridge the gap between research and climate action, and accelerate the transition to net zero emissions for Australia, Southeast Asia and the Pacific. CWC has worked with developing countries on their long-term climate change strategies and mapping out a pathway at a country level towards net zero by 2050.
Australia-Indonesia Centre: The University of Western Australia is a Principal Partner of the Australia-Indonesia Centre (AIC), a bilateral collaborative research initiative by both governments, leading universities, and industry. Its mission is to advance people-to-people links in science, technology, and education. Its flagship Partnership for Australia-Indonesia Research (PAIR) program, which also involves Monash University, the University of Melbourne, the University of Queensland as partner universities, has a particular emphasis on the sustainable development of Sulawesi.
The Sydney Vietnam Institute: The University of Sydney hosts the Sydney Vietnam Institute, which brings together researchers and educators in Vietnam and Australia with an aim to improve the lives of people across Vietnam and beyond by generating and sharing knowledge. The University of Sydney has worked with partners in Vietnam for over two decades, across a wide range of disciplines including business and innovation; agriculture, food and the environment; infectious diseases; chronic diseases; maternal and child health; arts and social sciences; and education.
When considering the most pressing regional challenges over the next 20 years and where our research interests align, climate change will undoubtedly be front and centre. Many countries around the world have already begun a massive upscaling of clean energy and this will only accelerate as technology improves and markets shift. There is a huge economic opportunity for Australia in this global energy transition which we should use to not only lower emissions but strengthen strategic regional ties. The Go8, with our considerable expertise in clean energy technologies, can help power Australia’s transition and support new trade opportunities with Southeast Asia.
The Governments of Australia and Singapore have recently signed a landmark bilateral ‘Green Economy Agreement’ to work together on transitioning to greener economies. The agreement rightly includes measures to facilitate joint research or innovation projects on priority areas that will enable our green transition as well as a chapter on skills and capabilities for green growth. This agreement is a welcome start, but the model should be expanded to deliver broader benefits across the region. For example, this agreement could be used as a model for an ASEAN-wide partnership, allowing researchers from across the region to collaborate on joint projects and support the new and specialised skills that will be required to drive green jobs and industries. This would open further trade and investment opportunities, as well as build capacity and capability to support a faster regional transition to net zero emission economies.
More broadly, the Government should consider how bilateral and regional economic agreements could be leveraged to support mutual collaboration in science, research and innovation as a lever for increased trade, including through a dedicated ‘Innovation’ chapter as prescribed in the Australia-UK FTA. Australia should look to make strategic investments under these agreements in research areas that will deliver our nation a competitive advantage. For example, boosting research funding for projects that facilitate engagement with emerging technologies will stand us in good stead as we approach the next two decades and beyond. Other areas of interest may include certain priority areas identified under the soon-to-be-established National Reconstruction Fund.
As the Go8 has stated previously in its policy document Essential decisions for national success, a high-quality, highly trained, globally engaged network of researchers should be considered a fundamental part of Australia’s essential infrastructure.
Recommendations:
- Research and education to be included as a core pillar in the Economic Strategy.
- That the Australian Government invest in Australian researchers to participate in global research programs and exchanges.
- That the Australian Government expand the Australia-Singapore Green Economy Agreement to facilitate joint research and skills development amongst other ASEAN members.
That the Australian Government consider how bilateral and regional economic agreements could be leveraged to support mutual collaboration in science, research and innovation.
2. What obstacles to deeper engagement do your members face? 3. What could government(s) do to make opportunities in Southeast Asia more attractive?
Australia is a small country relative to many of our regional neighbours. A population base of 25 million, no matter how highly educated, cannot alone outperform nations in excess of 1 billion. In order to remain globally competitive, we must not only maximise the capacity of our domestic talent but also attract the best and brightest from other nations. We need access to global talent and there is no clearer example of the consequences of being shut off from this global pool of talent than the current skills crisis wiping the nation.
Migration
The COVID-19 pandemic has shone a spotlight on the critical role of migration to meet Australia’s skills and workforce needs. This is particularly true in emerging and high demand fields where there is a current undersupply of domestic talent and an increasingly competitive global race for skilled workers, for example Information Technology professionals. Department of Education data shows that pre-pandemic (2019), international students made up 65 percent of Australia’s higher education enrolments in Information Technology.[4]
In addition to meeting current workforce demand, migration is key to unlocking Australia’s innovation potential by enabling the inflow of new ideas and skills. The talent we attract helps link Australia to the technological developments needed for emerging jobs and industries and helps build Australia’s capabilities. For this reason, attracting and retaining overseas academic talent is essential to meeting skills needs and building a more innovative and sovereign nation.
The Go8 has advocated previously for the introduction of a targeted high potential individual (HPI) visa. This visa would be similar to the model being implemented in the UK and is geared towards attracting and retaining world leading university researchers and educators, as well as enabling graduating international PhD students to remain in Australia. Whilst visa settings are not the only issue influencing where PhD students choose to study, it is one consideration. Creating a simple pathway to permanence in areas of critical shortage could give Australia a strong advantage over our competitors for talent. Importantly, this is a policy lever the Government can pull to complement investments in Australia’s domestic workforce capabilities to ensure a pipeline of skilled workers now and into the future.
Acknowledging the work undertaken already, the Australian Government should also continue to process outstanding visas from skilled migrants as a priority. This is particularly important for international researchers who have their programs and scholarships tied to successful visa applications. The Go8 emphasises that visa backlogs are not just about the number of applications in the queue – but about the critical expertise that Australia is missing out on, or stands to lose, because of avoidable processing delays.
Building Capacity
In addition to attracting talent to Australia, there is a role for Go8 universities, supported by the Australian Government, to assist selected ASEAN countries in capacity building projects. Go8 universities have invested considerable effort in building a reputation for teaching quality and research excellence, as well as a strong and trusted profile in the Southeast Asia region. Part of our collective responsibility as leading institutions in the region is to harness our expertise and give back through mutually beneficial partnerships. With the breadth and depth of expertise across our universities, the Go8 can support capacity building across a wide range of areas or developmental vulnerabilities. For example, this could include developing new technologies, providing academic expertise on educational reform, helping build policy or managing complex projects. That is to say, the Government can better utilise Go8 universities to engage in the region, beyond in-bound teaching and research. There is an opportunity for the Government to support university partnerships to deliver broader positive social, economic and environmental outcomes across Southeast Asia through capacity building.
Recommendations:
- That the Australian Government address visa policy settings to improve the retention of Southeast Asian graduates, particularly in areas of Australian workforce need.
- That the Australian Government establish a High Potential Individual visa class to attract high-quality Southeast Asian students and researchers.
- That the Australian Government continue to invest resources to improve visa processing times for Southeast Asian students and academics.
- That the Australian Government support Go8 universities to assist selected ASEAN countries in capacity building projects.
4. How could the level of Southeast Asia literacy in the Australian education sector be improved?
The Southeast Asia Economic Strategy should focus on scholarship offerings to support Asian language literacy and cultural competency, as well as ensure Australia can continue to attract the best and brightest from across the region to undertake research in areas critical to our economy.
Knowledge and cross-cultural exchange
Student exchange programs have long been recognised for their ability to provide students with in-country specific knowledge, skills and experiences. These programs help to bridge cultural divides and foster deeper country-to-country connections.
The New Colombo Plan sends Australians overseas to study, intern and volunteer across the Indo-Pacific. However, this program is limited to students at the undergraduate level. A scholarship program for early and mid-career Australian researchers would be an important investment to foster a talented cohort of next generation and future leaders, who would in return be capable of supporting Australia and its partnerships in the region. Such a program would also help improve Asian language literacy and cultural competency for those more advanced in their careers, which will be critical as we work together on complex regional challenges. It is important, however, that any change to the scope of the New Colombo Plan does not reduce the number of undergraduate students able to participate.
Further, the cessation of the Australian Government’s Endeavour Scholarship and Fellowship Program in 2019 has left a critical gap in our ability to entice high-quality PhD students from across Southeast Asia to Australia.
Whilst Australia does offer scholarships for emerging leaders under the Australia Awards program, this program is delivered through the Australian Government’s international development policy, and is only open to individuals from developing nations, meaning countries with advanced economies such as Singapore are excluded. The Government has sought to address this through the Australia for ASEAN scholarships program, where Singapore is included, but again these scholarships are open to students undertaking a Masters degree, not degrees at the doctoral level. The Australia Awards program plays an important role in our international engagement, and the Go8 is not suggesting this program should be watered-down. However, Australia lacks a scholarship program geared at supporting research excellence, regardless of the development status of the student’s home country. The Government should consider funding a scholarship program for all prospective ASEAN PhD students to conduct research in areas of shared national priority.
Attracting the best Southeast Asian research talent to Australia through prestigious scholarships and exchanges is central to establishing the high-quality, long-term partnerships necessary for research excellence and deeper country connections. Focusing on the higher skills end of the market will also increase Australia’s attractiveness to R&D active industries in Southeast Asia, helping position Australia as a partner of choice for commercialisation as well as research collaboration opportunities.
Recommendations:
- That the Australian Government fund a scholarship program for ASEAN PhD students to conduct research in areas of shared national priority.
- That the Australian Government expand the scope of the New Colombo Plan to include postgraduate coursework and higher degree research students.
5. What do you see as the main trends and drivers of change affecting your members?
Southeast Asia has a growing middle-class and there is strong demand for high-quality education. As demand continues to outstrip in-country supply, Australia must harness the increased opportunities to collaborate.
Competition and Diversification
As outlined previously, the Go8 universities have established strong partnerships in the region but as we emerge from the global pandemic, there is strong competition within the international education sector. Skills shortages are being felt around the world and in response, there is a global race for talent.
In addition to Australia’s traditional competitor markets, such as the United States, United Kingdom and Canada, new competitors are beginning to emerge. The massification of education through online learning, driven in part by new technologies, has also increased the competition for high-quality international students and researchers. If Australia does not promote strong and effective in-country engagement as well as sustained profiling of education and research, there is a risk of losing access and influence in the region. The Government should consider re-engaging in the region and repositioning Australia as a quality, higher-education destination of choice. This should be complemented by building the Australian education brand in Southeast Asian countries not previously within focus. Strengthening partnerships in Southeast Asia will also help to diversify Australia’s international student cohort, making us more resilient to sudden market shocks.
Similarly, the Government should support universities to develop diverse methods of delivery and innovative new products to expand access to education across the region, helping build capability. This could include government-to-government engagement in education markets that may be hesitant to accept online modes of teaching or the quality of online degrees.
- That the Government Fund strong and effective in-country engagement.
- That the Government work with universities to develop diverse methods of delivery to support wider access to education.
As always, the Go8 is more than happy to discuss the recommendations and issues raised in this submission in further detail. I can be contacted via my Chief Operating Officer, Tracey Wright, e: tracey.wright@go8.edu.au or p: 0408 885 751.
Yours sincerely,
VICKI THOMSON
CHIEF EXECUTIVE
[1] https://www.trademinister.gov.au/minister/don-farrell/news/trading-our-way-greater-prosperity-and-security
[2] https://www.dfat.gov.au/geo/southeast-asia
[3] Extracted from InCites, 19 December 2022
[4] Department of Education, Higher Education Statistics Collection, 2019 year.