Malaysia’s South China Sea Policy: Still Walking the Tightrope

Malaysia has been one of the oldest and most unwavering allies of China in South East Asia. It was the first country to diplomatically recognize China in the region and continues to maintain a close diplomatic and economic relationship with China. Chinese territorial claims over the potentially resource-rich South China Sea waters and its islands have caused great unrest among the littoral countries, especially Vietnam and the Philippines. The problem is compounded by the multitude of claims made by these same countries over each other’s territory. The parties to this dispute, with the exception of China, happen to be members of ASEAN. Chinese claims, based on their own interpretation of historical and jurisdictional evidences; challenge the territorial integrity of these states. Malaysia, as one of the founding members of ASEAN and one of the largest economies in the region, wields significant influence over her fellow members-states and could have emerged as a crucial mediator and peacekeeper between the China and the South East Asian countries. However, Malaysia has adopted a cautious approach in dealing with the South China Sea issue, refraining from openly condemning Chinese actions and lodging protests only when her own territorial integrity is repeatedly challenged. Such caution has ensured Malaysia bountiful trade with China, along with cordial diplomatic and even military relations which have brought the two countries very close. However, recent events of Chinese aggression have led Malaysian leaders and the public to question their country’s stance. Ethnic Malays bear grudges for the ethnic Chinese minority in Malaysia, considered disproportionately rich. Malaysian government will also be fearful of Chinese incursions in their territories which are rich in petroleum resources. It can therefore be assumed that although Malaysia will tolerate Chinese actions for reasons of trade and security, she will not abandon the other ASEAN states and openly side with China. Malaysia’s policy in the South China Sea issue had been and in all probability, will continue to be one of diplomatic tightrope walking.