Australia’s future prosperity and security will be shaped in the Indo-Pacific. Yet, despite decades of warnings, our national Asia capability – knowledge of languages, cultures, and regional dynamics – has been in sustained decline. The current parliamentary inquiry into “Building Asia capability in Australia through the education system and beyond” is a timely attempt to confront this challenge.
The inquiry, launched in September 2025, comes against a backdrop of sobering trends. Enrolments in Asian languages have plummeted. Between 2004 and 2022, Indonesian language enrolments at universities fell by 76%, according to the Australian Consortium for In-Country Indonesian Studies. The Australasian Council of Deans of Arts, Social Sciences and Humanities notes that only one university now offers a handful of Southeast Asia’s other languages. Drawing upon reported data from the Australian Curriculum Assessment Reporting Authority, the Business Council of Australia pointed out that year 12 enrolments in Chinese, Japanese, Vietnamese, and Indonesian are at their lowest point in a decade.
This decline is not just an educational issue – it is a strategic vulnerability. As chair of the inquiry Tim Watts warned:
“Australia’s future prosperity and security relies on the Asia capability of our people – the mix of cultural understanding, language facilities and regional experiences that are needed to be effective in Asia.”
The inquiry’s remit is broad. It seeks to identify structural enablers and barriers to Asia capability across the life course – from early learning to tertiary education and into the workforce. This whole-of-nation framing reflects a recognition that Asia capability is not just about classrooms but about aligning education, industry and diplomacy.
Two hearings in Canberra provided contrasting but complementary perspectives.
In the first hearing on 29 October, the Department of Education acknowledged systemic challenges: fragmented policy, declining teacher supply, and lack of school-level support and resources for teachers. Questions from the inquiry pressed for practical steps to reverse the trend, such as incentives for language teachers and data on immersion programs where an Asian language is the medium of instruction across a school’s offerings.
The second hearing on 5 November gave insights into the untapped potential that already exists in Asian Australian communities. Australia’s multicultural identity is a national asset, yet structural barriers – sometimes referred to as the “bamboo ceiling” – limit the contribution of Australians of Asian heritage. Witnesses stressed that Asia capability is not just about learning languages; it’s about valuing lived experience and cultural knowledge as tools of influence.
More than 180 written submissions have been lodged with the inquiry, painting a picture of urgency and opportunity. Five themes dominate.
Almost every submission flagged the collapse of Asian language programs in schools and universities. In his introduction to the Australian Academy of the Humanities submission Stephen Garton warned that “without coordinated, long-term investment in language learning, cultural understanding and regionally literate research, we risk becoming strangers in our own region”.
Next are problems with the pipeline. Universities Australia highlighted the lack of continuity from school to tertiary study, while many submissions recommended incentivising the offering and uptake of Asian languages and studies along with guaranteed funding for Asian language enrolments, even when numbers do not justify the offering of that language.
Asia capability is not a niche concern. It underpins Australia’s ability to maintain social cohesion, navigate geopolitical tensions, and secure the trade and other tax-producing opportunities.
The diaspora advantage is a third theme. Many submissions argued for leveraging the linguistic and cultural assets of Australia’s Asian communities. Ideas ranged from formal accreditation of heritage language skills to programs that connect diaspora expertise with business and diplomacy.
Industry demand follows. The Business Council of Australia reframed Asia capability as a workforce issue. Companies need employees with cultural intelligence and regional expertise to manage risk and seize opportunities in Asia’s booming markets. Yet, as pointed out in many other submissions, few government departments or businesses prioritise Asia literacy or fluency in an Asian language in their hiring, let alone prioritising the recruitment of leaders with those skills.
The final two themes relate to the need for whole-of-nation coordination in response to the challenges and a body that can monitor progress. Several submissions called for a national Asia capability framework and a coordinating body to align education, trade, and workforce policy. This reflects a growing consensus that piecemeal efforts have failed, and systemic reform is needed.
Asia capability is not a niche concern. It underpins Australia’s ability to maintain social cohesion, navigate geopolitical tensions, and secure the trade and other tax-producing opportunities needed to support the government services and lifestyle that many Australians are accustomed to. It also offers the chance to make further inroads into problems of inequality experienced by many other Australians. According to the Department of Foreign Affairs and Trade, more than 80% of Australian exports go to Asia, which is the region at the centre of future economic growth.
The inquiry will report in early 2026 but the message from hearings and submissions is already clear: Australia needs a national reset. That means making Asia capability a core educational and workforce priority, investing in teacher supply and curriculum reform, valuing diaspora knowledge and integrating it into national strategies, and coordinating across government, industry, and civil society. As Watts warned in a recent piece in The Interpreter:
“Unless we make developing Asia capability a national priority, we are leaving our future security and prosperity to be determined by others.”
