The Interpreter
With Phnom Penh aiming to diversify its strategic
options, Canberra seems like a good bet.
At first glance, Cambodia and Australia might not seem like major players in each other’s diplomatic orbits. But watch this space.
Over the past decades, Canberra has been a key partner in Cambodia’s development, collaborating closely on economic and governance initiatives. To further strengthen ties, Phnom Penh could upgrade its relationship with Australia to a Comprehensive Strategic Partnerships (CSP) — the highest diplomatic tier in Phnom Penh’s foreign relations. This would make Australia the third country, behind China (in 2010) and Japan (in 2013), to achieve CSP status.
Upgrading Cambodian-Australian ties could enhance strategic and diplomatic engagement, supporting Cambodia’s goal of foreign policy diversification. Doing so would also align with Australia’s Southeast Asia Economic Strategy, recognising the region’s importance for its future growth and stability.
Cambodia’s new leadership is shifting towards a more diversified foreign policy, emphasising multi-alignment, economic diplomacy, and strategic autonomy. Middle powers such as Australia, which has an alliance with the United States and a continued focus on Southeast Asia, are central to this vision. With Phnom Penh seeking to strengthen relationships with partners beyond the United States and China to balance its international engagement, Australia is an attractive trade and diplomatic partner.
Engaging with countries such as Australia can help Cambodia reduce its reliance on great powers by providing alternative foreign policy options.
Both Cambodia and Australia stand to gain significantly from upgraded ties.
A CSP agreement with Australia would align with Phnom Penh’s new foreign policy slogan: “Keeping old friends and strengthening relations with new friends”. Engaging with countries such as Australia can help Cambodia reduce its reliance on great powers by providing alternative foreign policy options amid an increasingly complex geopolitical environment. Expanding its foreign policy toolkit under the new government, the CSP would strengthen Cambodia’s position within ASEAN while creating opportunities for cooperation beyond China-centric dependencies.
Canberra would also benefit. The CSP would signal Australia’s recognition of Cambodia’s importance in its Southeast Asia Economic Strategy. Often overlooked, Cambodia is poised to become the region’s fastest-growing economy by 2025, according to the International Monetary Fund. Integrating Cambodia into Australia’s broader ASEAN strategy strengthens its presence in Southeast Asia, reinforcing its commitment to regional stability and prosperity.
Bolstering ties with Phnom Penh also helps Canberra maintain relevance in Southeast Asia while addressing Cambodia’s needs. As Cambodia is likely to perceive middle powers such as Australia as more reliable and neutral than assertive great powers, this can help shape regional dynamics to Canberra’s advantage.
Some may point out concerns about Cambodia’s shrinking democratic space and poor human rights record. But the CSP is not contingent on a country’s political system. After all, Australia has a CSP with Vietnam, which also does not conduct free or fair elections. This highlights that partnerships can exist and be upgraded, despite “democratic deficiencies”.
Critics may also argue that Cambodia’s close ties with China make it a less viable partner for Australia. But that would be a mistake. Japan, another regional power, has demonstrated that engaging Cambodia is both possible and necessary. Notably, the Japanese government has extended more than 80 billion yen (US$564 million) since 1999 for a port in the Cambodian city of Sihanoukville. The port will increase its capacity nearly fivefold by 2030. The European Union invested more than US$1.5 billion in collaborative financing into Cambodia between 1992 and 2023, supporting major projects across various sectors.
Canberra should similarly act to strengthen bilateral relations with Phnom Penh to help mitigate the country’s over-reliance on a single power. Doing so could enhance Cambodia’s capacity to be a responsible stakeholder in what Canberra refers to as the rules-based international order.
Upgrading ties with Australia does not mean that Cambodia would sideline China. Beijing’s significant economic investments and strategic relationship with Cambodia will undoubtedly continue to be a priority for Phnom Penh. But what the CSP with Australia could offer is another option, a cornerstone in Cambodia’s broader foreign policy, serving as a bridge to engage with Western nations and the broader international community while maintaining autonomy.
Adopting a “people-centric” development framework would distinguish Australia from other countries engaging with Cambodia.
To effectively engage with Cambodia, Australia must recognise it cannot match China’s financial power. While the details of the CSP are not yet publicly known, Canberra should leverage its comparative advantages in education, government capacity building, climate change-related technology, and innovation. Canberra could, for instance, seek to improve local livelihoods and address socio-economic inequality by prioritising human capacity building.
Adopting a “people-centric” development framework would distinguish Australia from other countries engaging with Cambodia. Unlike elite-centric approaches focused on government engagement, Australia, alongside partners such as Japan and the European Union, could help reshape the Cambodian development landscape by emphasising grassroots initiatives. This inclusive approach would better meet local community needs, fostering more sustainable and equitable outcomes.
Education, a major Australian export, is another key factor in the Australia–Cambodia relationship. Australia remains the most popular English-speaking destination for Cambodians, with more than 2,800 students studying there in 2022 alone. Since 1994, more than 22,000 Cambodians have completed their education in Australia. These opportunities foster goodwill and help maintain Australia’s influence among future generations of Cambodian leaders.
Educational ties extend beyond the immediate; they build a more resilient partnership. Cambodian alumni contribute to their country’s development in leadership roles across government, academia, think tanks, and the private sector. This strengthens Cambodia’s human capital, simultaneously creating an alumni network more likely to advocate for continued collaboration between the two states.
By investing in the education and capacity building of Cambodians, Australia positions itself as a trusted partner, helping Phnom Penh navigate a changing geopolitical landscape while promoting regional stability.
The Australia–Cambodia relationship reflects the evolving dynamics of a region increasingly central to global power politics. As Phnom Penh balances ties with the United States and China, Australia can and should offer crucial opportunities for Cambodia to maintain autonomy and diversify its foreign policy.
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