25 September, 2025
australia-s-declining-asia-capability-a-looming-crisis

Australians have long understood that the nation’s future security and prosperity are intricately linked to the Indo-Pacific region. Over the past four decades, numerous government reports have stressed the importance of understanding the languages, cultures, and histories of our neighbors. However, despite these warnings, Australia’s Asia capability, particularly in languages, is in decline, reaching a critical juncture. As the region becomes more dynamic and complex, Australia’s complacency risks leaving the nation on the sidelines. Without prioritizing Asia capability, Australia may find its future security and prosperity determined by external forces.

The coming decade promises significant changes within the Indo-Pacific, home to some of the world’s fastest-growing economies. Meanwhile, China seeks to alter the balance of power, and the United States, under the Trump administration, has redefined its global role. Countries in Southeast Asia are navigating these shifts independently, challenging fundamental assumptions of Australian strategic and foreign policy.

The Decline of Asia Capability in Education

Australia’s Asia capability is regressing in schools, universities, and workplaces. The 2010 “Australia in the Asian Century” white paper set an ambitious goal: by 2025, all Australian students should have the opportunity to study an Asian language throughout their schooling. Yet, the proportion of high school students enrolled in Chinese, Japanese, or Indonesian has plummeted by 25%, now standing at a mere 3.3%. Remarkably, fewer Year 12 students study these languages today than in 1989, when the Hawke government initiated Australia’s Asia capability journey.

This decline extends to higher education. From 2004 to 2022, enrolments in Southeast Asian languages at Australian universities dropped by 75%. In 2023, out of over one million domestic university students, fewer than 500 were enrolled in Bahasa Indonesia. Experts warn that, if trends continue, Bahasa Indonesia may vanish from Australian schools by 2031.

In the United States, Spanish is the most taught language, reflecting its proximity to Spanish-speaking countries. In the UK, French holds this position. What does it signify if Australia ceases to teach the language of its largest neighbor?

The Broader Implications for Australia

The lack of language education poses broader questions about Australia’s influence in the region. While progress has been made by leveraging the expertise of Asian Australian diaspora communities, this alone cannot address the challenges of the new international environment. Technology, including AI, cannot replace the personal relationships and nuanced discussions needed to influence regional partners.

Australia’s prosperity and security undeniably depend on its Asia capability. However, the world has changed since the 1990s. Schools and universities now operate under different conditions than during the Hawke–Keating era, which saw the first major Asia capability initiatives. The solutions of the past are insufficient for today’s challenges. A new approach is required to address contemporary institutional realities.

Three-and-a-half decades ago, the Garnaut Report emphasized the need for Australians to become familiar with their East Asian environment. Bob Hawke envisioned an “enmeshment” with Asia, representing a significant reorientation of Australian attitudes.

Moving Forward: A Call to Action

Despite the intentions of successive governments, Australian attitudes have not shifted towards Asia as Hawke envisioned. Meanwhile, the international environment has evolved, and the future once predicted is now a reality. It is imperative for Australia to recognize the critical role of Asia capability in its prosperity and security.

Tim Watts, Chair of the House of Representatives Standing Committee on Education, has announced an inquiry into building Asia capability in Australia. This inquiry seeks to explore strategies for enhancing Australia’s engagement with the region. More information, including terms of reference and submission details, can be found on the inquiry’s website.

As Australia stands at this crossroads, the time to act is now. Building Asia capability is not just a choice but a necessity for securing Australia’s future in the Indo-Pacific.