Australia should deepen economic, security ties with Southeast Asia in a fragmented world: SM Lee

In a speech delivered during the 2026 ABC Boyer Lecture Series on Sunday, November 8, Singapore's Senior Minister Lee Hsien Loong urged Australia to deepen its economic, security, and people-to-people ties with Southeast Asia. He emphasized that in an era of increasing fragmentation and great power rivalry, Australia must be a close partner to ASEAN, particularly in a world where small and medium-sized powers must collaborate more than ever.

Lee noted the evolving global environment, with rising tensions between great powers and the erosion of multilateralism. While the United States, once the anchor of the global order, is reassessing its role in security and trade, China's growing influence is also evident. He highlighted how many nations are seeking to advance their ties with the US while becoming more self-reliant and protecting their strategic interests. However, self-reliance must be complemented by friendships and partnerships.

The Singaporean leader cited the warming relations between South Korea and Japan as an example of how deeper regional ties can create space for countries to pursue their own interests. He urged Australia to foster win-win projects with Asian countries in areas like digital economies, green initiatives, public health, and counterterrorism. Such cooperation would help countries view each other as partners in development rather than through a US-China rivalry lens.

In terms of defense and security, Lee emphasized that Australia should maintain a presence in Asia and strengthen partnerships with like-minded countries. While tensions may arise in the region, countries, including those with complicated ties, will naturally want to safeguard their interests. Strengthening communication channels between armed forces is crucial, especially in the event of incidents.

Lee stressed that Australia's diplomatic weight, economic resources, and established regional relationships position it well to bring countries together, particularly in areas like trade, pandemic preparedness, and climate change.

Lee also advocated for Australia to maintain an open and connected economy with Asia, despite its substantial and growing trade with Southeast Asia. He pointed out that Australia's investment footprint in the region is modest, particularly when compared to its investments in New Zealand. Southeast Asian firms could complement Australian projects in critical minerals, agribusiness, renewable energy, and digital and deep tech sectors, where Australia has strong capabilities.

By investing more in the region, Australian businesses can enhance their competitiveness and supply chains. He also stressed the importance of upholding, reforming, and strengthening the World Trade Organization (WTO) framework, as well as pursuing pragmatic solutions where global consensus is not feasible.

Regarding people-to-people ties, Lee highlighted the success of educational programs like the Colombo Plan and the New Colombo Plan, which have fostered goodwill between Australia and Asia. The growing Asian community in Australia, with one-third of residents born overseas, further strengthens these connections. However, immigration remains a contentious issue in many countries.

Lee acknowledged the sensitivity surrounding immigration, drawing from Singapore's experience in handling the pace, composition, and integration of new arrivals.