Higher education can boost Australia¡¯s diplomatic, trade and investment efforts overseas, the umbrella body for the nation¡¯s universities advises in its submission to a new foreign policy strategy.

Universities Australia also says in its to the government¡¯s foreign policy White Paper that nations such as China and Malaysia have been investing in their higher education systems as a way of retaining home students and attracting overseas students, meaning Australia ¡°cannot be complacent¡±.

The key to the government ensuring Australian universities remain attractive is ¡°higher education and research policy stability and adequate public investment¡±, says UA.

¡°Not only is the provision of education to international students an industry in its own right, international education and research provided by our universities is a critical pillar that supports Australia¡¯s diplomatic, trade and investment effort,¡± it adds.

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And UA continues: ¡°International education is Australia¡¯s third largest export industry and the largest services export, contributing A$21.8 billion (?13.6 billion) to the Australian economy in 2016. Of this, international education provided by our universities contributed approximately 67 per cent.¡±

Among the organisation¡¯s recommendations are that a ¡°whole-of-government brand¡± be developed for Australia education, and that ¡°consistent and appropriate visa settings¡± be applied to maintain a ¡°comparative advantage for students and academic staff¡±.

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On competition, UA warns: "Consideration must also be given to the fact that traditional market countries such as China and Malaysia have been investing heavily in their respective education systems ¨C both as a means of retaining students within the system as well as attracting new overseas student markets.

¡°So while Australia has enjoyed significant ongoing success in attracting international students over the past 10 years, we cannot be complacent. Whole-of-government support and policy flexibility will be central to our ongoing success.¡±

Belinda Robinson, UA chief executive, said: ¡°With A$3.5 billion in higher education cuts still reflected in the budget, and global competition for international students intensifying, Australia¡¯s continued success is in the balance.

¡°Universities in our region are investing heavily in their own systems ¨C China is building a university every week ¨C and countries all over the world are setting ambitious international education targets.?

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¡°If we want to continue to be in the top three destinations for international students, then our policy, regulatory and funding settings must support that aim.¡±?

john.morgan@timeshighereducation.com