Super funds to drive south-east Asia investment growth

Australia’s superannuation capital has been positioned to play a larger role in south-east Asia’s economic development under a new government-backed deal.

Australia’s growing pool of superannuation capital has been placed at the centre of a new partnership between the federal government and IFM Investors aimed at financing economic growth across south-east Asia.

The agreement, unveiled by Prime Minister Anthony Albanese at the ASEAN Indo-Pacific Forum in Kuala Lumpur, will see Export Finance Australia (EFA) provide up to $175 million to bolster IFM Investors’ private credit strategy.

The move is designed to channel Australian institutional and superannuation funds into fast-growing Asian markets through targeted lending opportunities.

The initiative supports the government’s Southeast Asia Economic Strategy to 2040 and will use the Southeast Asia Investment Financing Facility to expand regional investment flows.

IFM intends to deploy capital across sectors, including industrials, manufacturing, services, energy, and real assets – areas aligned with the region’s long-term development and demographic growth.

IFM Investors said the partnership reflects Australia’s ability to leverage its superannuation system as a global source of patient capital.

With assets now exceeding $3.9 trillion, super funds are increasingly being seen as key financiers of international infrastructure and private credit projects that can deliver long-term returns to members.

IFM Investors co-head of APAC diversified credit, Hiran Wanigasekera, said the collaboration demonstrated how Australia’s retirement savings could be harnessed to support regional prosperity, while generating value for fund members.

“This partnership reflects IFM Investors’ confidence in Asia’s long-term growth story and our commitment to supporting the region’s economic growth,” Wanigasekera said.

“By working closely with the Australian government, we aim to help deliver significant benefits to Southeast Asian economies while creating attractive opportunities for Australian institutional and superannuation capital that grows the retirement savings of Australian workers.”

IFM has also announced plans to open a Singapore office, strengthening its on-the-ground presence in the region as Australia deepens economic and investment ties with its Asian neighbours.