Prime Minister Dr Mahathir Mohamad today renewed his call for an East Asia Economic Grouping (EAEG) and backed a proposed regional monetary fund independent of the International Monetary Fund (IMF).

The EAEG is the brainchild of the 77-year-old Mahathir, who is Southeast Asia's longest serving leader, but the idea was dropped amid strong opposition from the United States a decade ago.

Mahathir said the region had overcome objections to an East Asian grouping by using the Asean Plus Three forum, the name given to Asean's annual summit with its dialogue partners China, Japan and South Korea.