The initiative came about as a result of Malaysia’s proposal for the IPEF to offer tangible benefits to Malaysians through technical assistance and capacity-building initiatives.

International Trade and Industry Minister Mohamed Azmin Ali says the IPEF is an instrument of economic diplomacy that aims to strengthen cooperation between member countries.

Washington has lacked an economic pillar to its Indo-Pacific engagement since former president Donald Trump quit a multinational trans-Pacific trade agreement, leaving the field open to China to expand its influence.

The proposed Indo-Pacific Economic Framework aims to offer a US-led platform for negotiating common regional standards around digital trade and data flows, labour standards, carbon emissions reductions and governance.