Southeast Asian fashion is a hotbed of potential that celebrates diversity and creativity, according to Naanyang Academy of Fine Arts fashion student Soh Ray Chel.

She says that while it is still finding its feet on the global stage many designers are navigating the space between cultural heritage, market expectations and personal expression.

For her, this in-between space isn’t a limitation but a frontier—an evolving landscape where new narratives and identities can take shape, rather than simply conforming to global definitions of success.

Like the SEA fashion sector, Australia’s industry is also considered a small fish in a big ocean—but opportunities to partner with the Southeast Asian industry could set both up to make waves.

This discussion comes at a defining moment for both regions, as their economic forecasts are sewn together, on the heels of the ASEAN Business and Investment Summit 2025 in Malaysia last week. The tagline for this year’s meeting of global leaders, policy specialists and business experts was ‘Unifying Markets for Shared Prosperity’—a mantra Australian Prime Minister Anthony Albanese was keen to apply to our national business strategy.

He said: “Strengthening our relationships with our Southeast Asian partners is critical to ensuring regional peace, stability and prosperity, and growing opportunities for Australian businesses and jobs.”

This reinforced the position he outlined in September 2023 at the release of Australia’s Southeast Asia Economic Strategy to 2040 that: “Our economic future lies with Southeast Asia.”

Recent data from the Australian Bureau of Statistics reveals that in 2024, Australia’s retail clothing sector generated $24 billion, contributing nearly 1.4 per cent to the national GDP. While modest compared to global fashion powerhouses, the sector’s impact extends beyond retail—reflecting a creative economy that’s primed for international expansion.

Although Australia’s fashion industry has yet to reach its full potential, its projected growth signals a sector on the rise as policymakers move to strengthen its position within the nation’s broader “creative industries” framework. Identified as one of ten priority sectors in the government’s latest economic strategy, fashion is poised to benefit from targeted investment and capability-building initiatives designed to amplify its reach across international markets.

While the prioritisation of inter-regional trade developments could benefit the fashion industry across both regions, Australian industry experts have cast shadows on these prospects, warning an increased focus on the SEA market could detract from the strengthening of local manufacturing capabilities.

A spokesperson from the peak body for the Australian fashion and textiles industry the Australian Fashion Council said their primary focus is on championing the AFC National Manufacturing Strategy, with ambitions to reinvigorate our local clothing manufacturing potential.

However, the dean of the School of Fashion and Textiles at RMIT University, Alice Payne, says we could have our cake and eat it too, reassuring that both increased market relations and enhanced local manufacturing could co-exist. She says: “Even if we quadrupled our local production, this would not make a dent in the huge volume of imports coming from overseas.”

RMIT School of Fashion and Textiles lecturer Aayushi Badhwar built upon Paynes’ sentiments and suggested a surprising synergy between the seemingly contradictory goals. She says: “Rather than competing, these strategies and partnerships can complement one another. Collaboration with SEA stakeholders remains essential in the near term and can help Australia progress toward a shared goal of a more ethical, circular, and environmentally responsible fashion industry.”

Joint visions, global impact

Strengthened collaboration with Southeast Asia promises multiple benefits for the Australian fashion industry, spanning raw material exports, diversified manufacturing, and fashion education. RMIT School of Fashion and Textiles lecturer Dr Kelly Kaiyan Zhu advises that a coordinated regional supply chain in countries like Vietnam and Indonesia—Australia’s largest cotton importers—could drive further trade growth, particularly as sustainable cotton production in Northern Australia gains traction. By aligning production capacities and environmental credentials, Australian cotton is well-positioned to meet rising regional demand while boosting the nation’s export profile.

For Nanyang Academy of Fine Arts fashion design student Soh Ray Chel, the opportunity for collaboration with Australia promises an innovative symbiotic relationship with a runway to success. Having recently explored digital pattern-making, she sees technology as a powerful bridge between Australia and Southeast Asia.

“Digital fashion can cut waste and cost by reducing the need for physical samples,” she says, noting that uptake of the software in Southeast Asia remains slow due to limited access and awareness. Ray Chel believes a shared digital workflow—linking Australia’s ethical fashion approach with Southeast Asia’s production strength—could set a new trend for low-impact innovation, making both sectors more sustainable and globally connected.

Fellow NAFA fashion design student Alice Tan Qian Ai believes collaboration is a dialogue—one which begins long before the first sketch. She envisions designers from Southeast Asia and Australia coming together in creative exchanges that explore design approaches and cultural heritage.

She says: “When we share ideas, we learn to see through each other’s lenses.” She believes such dialogue could spark more thoughtful, globally resonant collections—pieces that reflect both diversity and shared creativity. In her view, collaboration is not just about partnership but about shaping a regional identity strong enough to stand confidently on the world stage. NAFA fashion design student Sii Mui agrees. She says: “Overall, it should be about building relationships, not just creating products.”

Yet challenges remain. The Australian fashion industry is constrained by high domestic labour costs, fragmented local supply chains, and limited capability to achieve circularity in textiles. Geopolitical uncertainties, such as China–US trade tensions, further expose reliance on overseas manufacturing.

Leveraging Southeast Asia’s integrated supply chains can mitigate these risks, though dependence on Chinese raw materials introduces new vulnerabilities. Dr Kaiyan Zhu asserts, however, that for Australia, deeper regional collaboration offers a pathway to both economic growth and resilience in an increasingly complex global fashion ecosystem.

Wear next?

Badhwar advises that cross-regional collaborations need to balance short-term gains with long-term growth, leveraging regional manufacturing strengths and addressing Australia’s skill gaps today, while building local capabilities to create a self-sustaining domestic industry for tomorrow.

And while the fashion industry of Southeast Asia and Australia may not shine as brightly as other fashion capitals, both regions possess immense potential to redefine fashion on our own terms. Rather than chasing trends, experts and insiders envision a thoughtful, hybrid approach to expanding our respective fashion prowess on the world stage—one that is deeply human and rooted in local context.

Associate dean at the NAFA School of Fashion Studies Anthony Tan says it’s about shaping a distinctive path and presence that feels authentic to each region’s cultural and creative identity, proving that influence doesn’t require imitation, but clarity, intention, and a commitment to telling stories that resonate globally while staying true to where they come from.