Defence Industry Ministry Christopher Pyne says living in a region of serious political instability means Australia has to offer military assistance where it can.
Defence Minister Marise Payne will be travelling to Manila this week for talks with her counterpart over the need to send Australian troops to the country to counter the Islamist uprising in Marawi.
Mr Pyne says both countries are cooperating but at this stage, he doesn't know whether it will result in troop deployment.
"We live in a region which has serious instability, from North Korea right through to the South China Sea and it's very important for us as a responsible military power to take what action we can," he told ABC television.
Opposition defence spokesman Richard Marles said if ISiS is allowed to gain a foothold in South East Asia it will be one of the greatest security challenges facing Australia.
"We need to be alive to this and do everything we can to prevent this from becoming a reality," he told Sky News.
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