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In this episode of DBrief, Louise McGrath speaks with the Hon Tim Watts MP about the findings of the House of Representatives inquiry into building Asia capability in Australia and why it matters for the country's future effectiveness in the region.

As Asia becomes increasingly important to Australia's economy and strategic interests, the report argues that many of the capabilities needed to succeed are moving in the wrong direction. Language learning is declining, opportunities for in-country experience are shrinking, and the pipeline of people with deep cultural, commercial and professional understanding of Asia is under growing pressure.

The discussion examines why Asia capability should be viewed not simply as an education issue, but as a national economic and strategic priority. From exporting services and attracting investment to building trusted commercial relationships, success in Asia often depends on far more than technical expertise or a good product.

The episode also highlights the role businesses can play in creating demand for Asia capability, the value of long-term investment in regional relationships, and why some of Australia's biggest growth opportunities may depend on skills that are often overlooked in workforce planning.

Key takeaways

  • Australia's ability to engage effectively with Asia is being challenged by declining language learning and reduced opportunities for in-country experience.
  • Businesses that treat Asia capability as a leadership and workforce priority are likely to be better positioned to access growth opportunities in the region.
  • Many of Australia's untapped opportunities lie in services, investment and other sectors that depend heavily on long-term relationships and cultural understanding.
  • Language capability is about more than translation - it helps build trust, context and understanding that cannot easily be replicated by technology.
  • Employers play an important role by creating visible career pathways for people who invest in Asia-related skills and experiences.
  • The report highlights a disconnect between widespread recognition of supply chain diversification risks and the action needed to address them.
  • Success in Asia often requires long-term commitment, patience and relationship-building rather than short-term commercial returns. 

Links discussed in the podcast:

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Louise McGrath

In her role as Australian Industry Group’s Head of Industry Development and Policy Louise provides strategic leadership and guidance for Australian Industry Group’s policy agenda in building competitive industries through global integration, infrastructure development and innovation. She ensures that through policy leadership members have a voice at all levels of government, by representing and promoting their interests on current and emerging issues.

Louise represents Australian Industry in several multilateral forums, such as the B20 Taskforces, Global Business Coalition, and the East Asia Business Council working group on RCEP. She advocates for the interests of Australian Industry Group members during Free Trade Negotiations and translates those agreements to support the strategic aims of members. She is a member of CSIRO’s Responsible Use of Artificial Intelligence Think Tank and the Manufacturing Advisory Group, the NESP Sustainable Communities and Waste Hub and the Advisory Group of The Australian Consortium for ‘In-Country’ Indonesian Studies (ACICIS).

Louise has studied a Bachelor of Arts (Arabic Language and Culture) at Deakin University and an Advanced Diploma in International Trade at RMIT. She has also studied Arabic at universities in Jordan and Egypt.

    Dr Jeffrey Wilson

    Jeffrey Wilson is Head of Research and Economics at Australian Industry Group.

    He leads our economics team and provides strategic direction in developing the research program to support our advocacy, service delivery and policy activities.

    Dr Wilson specialises in international economic policy, with a focus on how trade and investment shape the Australian business environment.

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