Australia Faces Gaps in Asia Expertise and Defence Industry, Calls for Allied Cooperation

The Australian government released an inquiry report on building Asia capability, warning that declining study of Asian languages—especially Indonesian, Japanese and Mandarin—threatens the nation’s diplomatic, economic and security future. The report notes that enrolments in these languages have fallen sharply in schools and universities, with Indonesian approaching "functional extinction" in some states, jeopardising the pipeline of specialists needed for diplomacy, business and defence.

At the same time, Australian defence officials highlight that the domestic defence market alone cannot sustain deep industrial capacity. With the Australian Defence Force as the sole major customer, firms face volatility and limited scale. Industry leaders such as Redarc are diversifying into defence products, but reliance on a single buyer remains a risk. Officials argue that greater cooperation with allies, including joint procurement schemes with the European Union and partnerships with companies from Lithuania, Denmark and France, is essential to build resilient supply chains and expand export markets.

Both findings point to a strategic need for Australia to strengthen its regional expertise and broaden defence industry collaborations to secure long‑term national security and prosperity.