Australia has announced a $2 billion fund to boost trade and investment with Southeast Asia, with a focus on clean energy and infrastructure.

The initiative aims to triple the volume of two-way trade between Australia and the region.

The Coalition critiqued the plan, suggesting a greater focus on domestic infrastructure, while Independent MP Monique Ryan defended the importance of Asian engagement.

Treasurer Jim Chalmers and Opposition foreign affairs spokesman Simon Birmingham both advocate for enhanced trade and investment ties with Southeast Asia.

Additional measures include a $46 million investment in maritime partnerships and $140 million dedicated to the Partnerships for Infrastructure Program in Southeast Asia.

Foreign Minister Penny Wong has issued a caution regarding activities in the South China Sea that contradict international law.