By Helen Brown, Founder, Bisnis Asia and Lead, Communications and Outreach, Australia-Indonesia Centre

When Australian businesses travel to Asia there is excitement about the possibility and realisation that the region is, yes in fact, powering ahead. The energy can make it feel like anything is possible. However, after the warm exchanges and enthusiastic sharing of contact details it is a struggle, for many, to work out where their offering fits long-term in a complex and dynamic business environment. 

Some do succeed and do very well. Generally speaking, a business that does succeed, from whichever country it originates, puts a sustained effort into several actions over time. And as the articles in the Asia Agenda series show, these efforts are focused on building relationships and valuing collaboration rather than just transaction. 

Anyone in business with a presence in Asia will likely also say it's about the resilience to keep getting back up and putting in (or to put it another way, learning from mistakes). 

The fact the question is still being asked about Australia's desire to build real economic partnerships in Asia shows that investment is yet to develop the depth that many believe is possible. 

Success means getting back up and putting in

The question has led to some insightful responses from people with knowledge of and a passion for deepening engagement. Similar themes have emerged time and again over more than a decade on this subject and the answers are becoming more refined. The federal government's response to the Moore report, Invested: Australia’s Southeast Asia Economic Strategy to 2040, is an example of this, creating a significant and multi-pronged effort to support business to engage in a more meaningful way in the region.  

The articles show what is required if business is to move the dial.

Tom Parker, from the Australia China Business Council, delves into the concept of a knowledge partnership which is a phrase that has meaning in Asia. This is the concept of moving beyond the transactional to develop collaborative partnerships built over time which support each others' long term aspirations. It has been a key element in the dairy industry's ongoing engagement with China.  

"Knowledge transfer doesn’t need to be a by-product of bi-lateral business but should be a bedrock of building strong foundations that can act as a ballast during increasingly economic uncertainty and geopolitical fragmentation," he says. He also says Australian business needs to be proactive and can "play a pivotal role in the global transition to net zero.”

The concept of knowledge transfer could apply to the challenge of energy transition, a need that is high on the priority list in many parts of Asia.  

Indonesia has just held the International Sustainability Forum, attracting more than 10,000 registrations from around 50 countries. I am told the response was overwhelming as attendees grappled with the problems of the complexity of the energy transition, how to fund it and how to take ideas to concrete action. I don't know how many Australian companies were in the room.  

Another example of this critical juncture is the Malaysian state of Sarawak which is investing in the green energy transition. It's developing partnerships with international players and considering how growth in this industry would enable digital technology application and increased skills for the workforce. The Premier, Tan Sri Patinggi Abang Johari Openg, outlined to an audience of hundreds at the recent ASEAN-Australia business forum his goal of ensuring a better life for people through sustainable energy.  

At both events participants were seeking to meet people and find ways to work together, in business, to achieve goals and share in the outcomes.

Richard Moore, from the Development Intelligence Lab, also touches on the huge challenge and opportunity for Australia to become an equal and trusted partner in developing economies such as Indonesia, Vietnam and the Philippines "'working as equals to tackle the big challenges" 

"It’s frequently said the ASEAN region is too diverse to take regionally focused approaches.  Yes and no.  It’s hugely diverse, but some of the most important challenges are common - including the need for rapidly scaled-up, clean energy and ways of dealing with cascading middle-income country problems."  

Richard Yetsenga, from the ANZ Banking Group, asks how the nation might move away from the transactional, bulk commodity mentality of doing business, although nots this has served Australia well. He looks at the massive superannuation industry which is now "equivalent to 145 per cent of GDP and is the fifth largest of its kind in the world”. This industry is in the spotlight with questions asked around its heavy skew to developed markets.    

As Yetsenga says: "There seems an opportunity to export this money management expertise to Asia, and yet brands from the US, UK and Japan light the skylines of Asia’s capitals." 

There is immense change taking place in the region which requires partners to recognise the aspiration, investigate the value and deliver on the need. 

The honorary chairman of developer and builder Hang Lung Properties Ronnie Chan told the Australian Financial Review/Asia Society Australia Asia Business Summit  that "Asia is basically just a very open place…you just need to get out, Asia is ready to receive you". 

Risk aversion is obscuring opportunities 

From what I have seen and learned over the years there does seem to be a particular risk analysis on the Australian side, which is perhaps used to dealing with ”what it knows”. There is also a reluctance to just "get in" and take the necessary steps to find the opportunities.  

This includes tapping into the Asian companies and people with Asian background living in Australia, using this proximity to develop relationships and understanding. It is not always easy, but as Jason Hayes and Sung Lee from PwC put it: "With some preparation, patience, and the right people, we argue that this can be an opportunity that any significant company can take advantage of."  

And Yetsenga includes the need for some humbleness. "Deftness, sensitivity and patience can sometimes be a challenge to the habitual Australian way of doing things. Treading softly in every interaction would be good place to start." 

The question is, will things change. That is a hard one to answer; it requires a deeper and sympathetic analysis at what is holding Australian business back.  

Perhaps businesses have done the numbers and the return on investment is not compelling enough for them. Does business count the value of shared innovation, knowledge transfer and the ability to weather the storms? It would be interesting to know how that return on investment calculation is made.  

Ultimately for business to succeed in Asia the authors say that it needs to believe in itself, step in and commit. 

Helen Brown is the Founder of Bisnis Asia; the Lead, Communications and Outreach at the Australia-Indonesia Centre; and a former ABC correspondent in Indonesia.

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