KUALA LUMPUR: Malaysia and other countries in Southeast Asia will benefit from the Indo-Pacific Economic Framework as United States President Joe Biden's administration ramps up a re-engagement plan with the region, especially in matters of trade and economy.
US Secretary of State Antony J. Blinken said the US had a comprehensive economic framework in development, with an opportunity for discussion in Malaysia and Indonesia beforehand.
In an interview with the New Straits Times after flying in from Indonesia, Blinken, while asserting that the framework is not about countering Beijing, explained the differences in the approach of US business practices and project objectives compared with China.
The US top diplomat also emphasised that the framework is an acknowledgement of the growth potential of the entire region, with investments already starting to pour into Asean member countries, including Malaysia.
"As we look to the future, we see a region that now has half the world's population, some of the fastest growing economies, nearly 60 per cent of the global gross domestic product and maybe, most importantly, an incredibly young, innovative, vibrant population and that really is in itself the future, so we see a very strong stake in that shared future.
"This is where so much of the future will be built and that's why President Biden has re-engaged the US throughout the region," he said during his second stop after meeting Indonesian leaders last Monday.
Blinken explained why the US approach on trade is different.
"One is to further facilitate trade, two is to work together on the digital economy, which is such an increasingly dominant part of all of our lives and working together in shaping the rules and standards that will govern the digital economy.
"Three is making the right kinds of investments and infrastructures so that it is the race to the top, not the bottom.
"This is so that when those investments are made, they don't pile debt on countries that can't afford it. These projects can move forward in ways that protect the environment, protect workers, built to the highest standards and without corruption.
"Building stronger and resilient supply chains which we've seen is so critical. We've seen the fragility of those supply chains during (the) Covid-19 (pandemic) and things like semiconductors, where Malaysia plays an important role, would be part of that.
"And also helping to develop workforces throughout the region so that people have the skills and training they need to succeed in the digital economy and one (that is) increasingly regional and globalised, so we have a very comprehensive framework and we're further developing, putting in place and engaging with other countries on it."
Last month, a joint statement by the US and Malaysia said both nations planned to sign an agreement early next year towards improving transparency, resilience and security in the semiconductor and manufacturing sector supply chains.
Blinken also pointed out that the framework would be another indication of how much the US values the Indo-Pacific, apart from being the No. 1 foreign direct investor in the region, including among the leading ones in Malaysia.
"In fact, just last week, we saw significant new investments worth billions of dollars and we have an Indo-Pacific Business Forum for the region as well that last month resulted in US$7 million in new projects."
In late October, Biden, in a virtual meeting with nine Asean leaders, announced plans to provide up to US$102 million to expand US strategic partnership in the Indo-Pacific region.
Elaborating, Blinken stressed that the framework would advance trade, focus more on the digital economy, bringing momentum to increase investments and infrastructure, build a more resilient supply chain, among others.
"I just want to point out we're already starting out on a strong foundation. What we do together in our case typically involves the US bringing the private sector in on investments. That's something we can do uniquely and we're putting in place the ability to do more of and more effectively going forward."