Australia Fills The Gap: A$1.28 Bln Aid For ASEAN After USAID Cuts

By Nurul Isnaini Mohd Muslim

KUALA LUMPUR, July 10 (Bernama) -- Australian Foreign Minister Penny Wong announced on Thursday a development fund exceeding A$1 billion for ASEAN countries to offset the impact of USAID funding cuts. This initiative is part of Australia’s commitment to fostering lasting economic prosperity, climate resilience, and regional stability and security.

“We know that there is uncertainty in development funding and the impact of global cuts is not entirely yet known. But at a time of disruption, Australia is directing a A$1.28 billion development programme in Southeast Asia to meet your highest needs,” she said.

She was speaking at a special talk organised by Malaysian think tank Institute of Strategic and International Studies (ISIS) and the Australian High Commission Malaysia held on the sidelines of the 58th ASEAN Foreign Ministers’ Meeting (AMM) and related meetings, which are taking place from July 8 to 11.

In her speech, she highlighted several humanitarian programmes that will benefit from the funding, including vaccination and HIV/AIDS initiatives in the Philippines, as well as free meal programmes for children and pregnant women in Indonesia, among others.

She also announced that Australia has increased the amount of humanitarian assistance to Myanmar and Rohingya refugees - including host country Bangladesh - to A$16 million.

The Trump administration slashed over 80 per cent of USAID programmes in March, citing it as an effort to reduce “wasteful spending”, and has since considered dismantling the agency.

The United States was the United Nations’ biggest funder, contributing at least 38 per cent of its humanitarian assistance last year.

A study published on June 30 in The Lancet estimates that these cuts could lead to an additional 14 million avoidable deaths by 2030, including 4.5 million children under the age of five.

Wong reiterated Australia’s commitment to remain a strategic partner in ASEAN and the Indo-Pacific region.

“We’re not going anywhere,” she said.

The foreign minister, who was born in Kota Kinabalu, Sabah, emphasised the importance of international and regional alliances in addressing shared challenges and building resilience by integrating economies further and improving defence and security cooperation.

She also highlighted the importance of respecting the sovereignty, choices, and independence of nations, stressing the value of collective responsibility over military power.

“(We) must build the region we want, not just accept the region we face,” she said.

On Malaysia-Australia relations, Wong said both countries share a common history and face similar challenges, which, when addressed collaboratively, can lead to powerful solutions.

“It’s not necessarily determinative, but is the world better if middle powers work together in pursuit of those shared objectives? Absolutely it is,” she added.

Malaysia is the largest source of international students in Australia, while Australia ranks as the fourth-largest tech investor in Malaysia.

-- BERNAMA