Malaysia’s Prime Minister, Anwar Ibrahim, has recently drawn attention for allegedly shifting the country’s foreign policy closer to China. Particularly concerning the South China Sea dispute. A closer look reveals that Malaysia’s stance on this issue remains largely unchanged. By continuing a long-standing approach that balances territorial defense, economic ties, and regional diplomacy.
Malaysia’s Three-Pronged Approach
Since the early 1990s, Malaysia has followed a three-pronged policy in managing its overlapping claims with China in the South China Sea. This policy was first established under former Prime Minister Mahathir Mohamad and remains in place today.
1. Defending Malaysia’s Territorial Claims
Malaysia has consistently defended its territorial claims in the South China Sea. The nation has stationed military forces on five of the Spratly Islands’ atolls. To maintain Malaysia’s sovereignty, the nation’s Exclusive Economic Zone (EEZ) is constantly patrolled by the coast guard and navy of Malaysia.
China’s expansive nine-dash line claim in the South China Sea was openly rejected by Malaysia in 2019. Malaysia had described it as “ridiculous.” This stance has not changed under Anwar’s government. Malaysia continues to assert its rights in the region, with state-owned energy company Petronas drilling for oil and gas within the EEZ.
2. Decoupling Disputes from Economic Ties
Malaysia also works hard to separate the South China Sea dispute from its important economic relationship with China. China is Malaysia’s largest trade partner and a significant source of investment. To maintain this relationship, Malaysia downplays the dispute, avoiding actions that could harm trade and investment ties.
For example, Malaysia has not made public protests about the frequent presence of Chinese coast guard ships near the Luconia Shoals, a resource-rich area within Malaysia’s EEZ. Instead, Malaysia continues to engage with China on economic matters while keeping the maritime dispute in the background.
3. Promoting Peaceful Negotiations
Malaysia supports the ongoing negotiations between ASEAN and China to develop a Code of Conduct for the South China Sea. This is part of Malaysia’s broader commitment to resolving disputes through peaceful dialogue.
While Malaysia has occasionally suggested bilateral talks with China, these have mainly been rhetorical. Kuala Lumpur maintains exclusive rights to all resources within its EEZ and has no serious intention of compromising its sovereignty through negotiations with Beijing.
Anwar’s Continuity in Malaysia’s South China Sea Policy
Anwar Ibrahim has followed the three-pronged strategy that Malaysia has devised since assuming government in November 2022. His government has not compromised the country’s territorial claims or sovereign rights in the South China Sea.
After a visit to China in April 2023, Anwar told the Malaysian parliament that while Beijing expressed concerns about Petronas’ activities. But Malaysia would continue its exploration because the area is Malaysian territory. Anwar’s remarks about being “open to negotiations” with China led to some domestic criticism. But this position is consistent with Malaysia’s long-standing policy of engaging in dialogue while defending its claims.
The Malaysian government quickly reaffirmed its commitment to protecting the country’s sovereignty. In response to China’s new map in August 2023, which included the nine-dash line, Malaysia firmly rejected it.
Downplaying Tensions with China
Anwar’s administration continues to downplay the South China Sea dispute to avoid escalating tensions with China. In a June 2023 interview, Anwar accused the West of increasing tensions in the region. He stated that while Malaysia has issues with China, there have been no serious clashes.
Similarly, the director-general of the National Security Council, Nushirwan bin Zainal Abidin, downplayed the presence of Chinese ships in Malaysian waters, suggesting that it should not affect bilateral relations.
A Balanced Approach
While Malaysia’s approach to the South China Sea dispute may appear more accommodating to China compared to countries like Vietnam and the Philippines. It still remains a carefully balanced policy. By utilising a three-pronged approach, Malaysia is able to uphold strong territorial claims. Along with safeguard its sovereign rights, all the while keeping close ties with China.
Prime Minister Anwar Ibrahim has shown a clear understanding of this delicate balance and is unlikely to deviate from it. Malaysia’s foreign policy in the South China Sea remains consistent and focused on safeguarding national interests while promoting regional stability.