US’ Indo-Pacific economic pact of strategic, economic significance to region: PM Lee

THE US-led Indo-Pacific Economic Framework for Prosperity (IPEF) is a valuable platform of both strategic and economic significance in the region, and Singapore welcomes its launch, said Prime Minister Lee Hsien Loong on Monday (May 23).

“Singapore welcomes the IPEF. We have always upheld an open, inclusive and rules-based order that is stable, secure and prosperous,” he said.

“It can be a valuable platform for the US to exercise economic diplomacy in the region, and it clearly signals the US’ continued commitment to engage with its partners in Asia, and deepen ties across the Pacific,” Lee added.

His remarks come after US President Joe Biden formally unveiled the Asia-Pacific trade initiative during his official visit to Tokyo.

According to a White House statement, the framework focuses on 4 key pillars to establish “high-standard commitments” that will deepen the US’ economic engagement in the region.

The pillars cover issues related to digital economy, supply chain resilience, clean energy and decarbonisation, as well as a fair financial system with effective tax and anti-money laundering regimes.

Noting that the IPEF contains a forward-looking and positive agenda on economic cooperation, Lee said the 4 pillars include issues that will resonate strongly in the region.

In particular, cooperation in the digital economy and green economy shows promise of growth, he added.

Lee also said it is important that the IPEF remains open, inclusive and flexible.

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“Enabling members to continue working with many other partners, in overlapping circles of cooperation, and leaving membership open to others to join later on, as and when they are ready to do so,” he said.

The prime minister added that Singapore looks forward to working closely with the US and other partners to flesh out the IPEF.

He said: “We hope that in due course, it will lead on to even greater and more ambitious economic engagement between the United States and the region.”