It is a multilateral naval exercise that includes simulated war games and combat manoeuvres. It started in 1992 as a bilateral exercise between the Indian and US navies. Japan joined in 2015. Hence statement A is Incorrect . For the first time in over a decade, the exercise will see the participation of all four Quad countries . This will be the second time Australia will participate . Hence statement B is Correct . The 2+2 dialogue ended with an agreement to uphold the rules-based international order, respect for the rule of law and freedom of navigation in the international seas and upholding the territorial integrity and sovereignty of all states . As the standoff in eastern Ladakh continues, the participation of four large navies from the Indo-Pacific region will send a message to China. It was the possibility of riling up China that had prevented India from expanding the Malabar Exercise, and from Australia joining it. Over the last few months, the Indian Navy has conducted a number of Passage Exercises (PASSEX) with navies from Japan, Australia and the US . But those were basic exercises to increase operability between the navies, while Malabar involves simulated war games.