By Dr. Izyan Munirah Mohd Zaideen, senior lecturer at Faculty of Maritime Studies, Universiti Malaysia Terengganu
Malaysia’s strategic location along vital global shipping routes, particularly the Straits of Malacca, renders it an essential hub for international maritime commerce. China is a principal user of the Straits, utilizing it for economic and energy security. Consequently, sustaining strong diplomatic and economic connections with Malaysia and other coastal nations is essential for China.
Within Malaysia, there is typically a pragmatic viewpoint regarding China’s economic involvement. Malaysia has extensive economic ties with China and benefits from Chinese investments associated with the Belt and Road Initiative (BRI). Chinese companies have significantly contributed to the enhancement of Malaysia’s maritime sector, encompassing investments in crucial projects like port infrastructure.
One of the busiest ports in Southeast Asia, Port Klang, for instance, conducts significant volumes of commerce with China, demonstrating the two nations’ significant commercial ties. Next, a Chinese firm, Beibu Gulf Port Group, is a main investor in the Kuantan Port development project. The deep-water terminal at Kuantan supports the industrial zone under the Malaysia-China Kuantan Industrial Park (MCKIP) and is essential to Malaysia’s commerce with China.
These investments are an integral part of China’s BRI, which seeks to enhance economic routes and connectivity throughout Asia. By taking into account China’s extensive global supply networks, Chinese participation in port development strengthens Malaysia’s standing as a maritime hub.
However, China’s expanding influence in Southeast Asia, particularly in the South China Sea (SCS), has made Malaysia’s dilemma more challenging. China and Malaysia have had a complicated maritime relationship with regard to territorial disputes in the SCS. The main cause of contention is the overlap of claims in the SCS, particularly in regions with abundant oil and gas resources, where China’s vast “nine-dash line” overlaps Malaysia’s exclusive economic zone.
Despite the proximity of economic relationships, tensions in the SCS, where China and Malaysia share territorial claims, may impact trade routes or maritime activities. Because of this, Malaysia finds it difficult to completely limit China’s influence and strike a balance between the need for Chinese investment and national interest in preserving marine resources and sovereignty without compromising strategic importance in the area.
Under international law, Malaysia has the own territorial rights in the SCS, but it frequently stays out of direct conflict with China. It seems that Malaysia has managed ties with China in a more circumspect and balanced manner, choosing tactful diplomacy over direct conflict. This careful strategy strikes a compromise between keeping a vital economic tie and asserting its own sovereignty.
Political leaders also recognize that China’s presence in Malaysia provides substantial economic advantages, such as infrastructural development and job creation. Given these circumstances, any attempt to restrict China’s influence must include internal economic and political interests. If Malaysia responds too firmly to China’s influence, it may risk diplomatic and economic repercussions.
Some experts have expressed worry about the possibility of “debt traps” linked with Chinese-funded projects, in which governments struggle to repay debts and risk losing control of important assets, as has been observed in other BRI projects worldwide.
While it is difficult for Malaysia to contain China’s expanding footprint, the government does have some choices. Malaysia can maintain its goal of countering Chinese influence by diversifying maritime alliances. Malaysia should interact with other nations and actively pursue economic and political connections with major powers such as the United States, Japan, India, and the European Union in order to minimize reliance on China.
Next, Malaysia must take an active role in promoting regional maritime cooperation through ASEAN, including international maritime agreements. Through ASEAN platforms, Malaysia may collaborate with neighboring countries to address challenges relating to China’s influence, such as security and trade concerns.
In a nutshell Malaysia has a strong economic connection with China, yet it confronts constraints in countering China’s influence. The dependency stems from economic interest, the benefits of Chinese investment, and the difficulties of regional geopolitics. However, with proper diplomacy, Malaysia can manage this relationship without becoming heavily dependent on China.
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