KUALA LUMPUR: Malaysia’s latest five-year development blueprint, the 13th Malaysia Plan, sets out the usual targets for economic growth—but Prime Minister Anwar Ibrahim’s comments on defence have drawn unusual attention.
When tabling the plan in parliament on July 31, Anwar singled out a specific security priority:
“Readiness to confront sovereignty and security threats in the South China Sea will be intensified more comprehensively.”
This explicit mention of the contested and resource-rich waterway marks a departure from the broader defence language of the 12th Malaysia Plan in 2021. Analysts say it signals a sharper focus on maritime security, possibly with dedicated funding for offshore monitoring and expanded use of unmanned aerial vehicles (UAVs).
Building Capability in Borneo Waters
Malaysia is already upgrading its military presence in East Malaysia with long-range radars, long-endurance drones, and a planned naval base in Sarawak capable of supporting submarines. Observers suggest this emphasis reflects sustained pressure from China’s naval forces and persistent illegal fishing by Vietnamese vessels within Malaysia’s Exclusive Economic Zones (EEZ).
Still, experts expect Malaysia to stick to its non-confrontational South China Sea policy, prioritising bilateral ties with other claimant states—China, Brunei, the Philippines, and Vietnam—while quietly strengthening deterrence.
Multiple Sources of Pressure
Thomas Daniel of Malaysia’s Institute of Strategic & International Studies notes China’s ability to alter the status quo and the steady pressure it has exerted on Malaysia. However, he adds that illegal fishing by Vietnamese fleets—sometimes aggressive and armed—also drives security concerns.
Between mid-2019 and September 2024, the Malaysian Maritime Enforcement Agency detained 598 fishing vessels, three-quarters of them Vietnamese. Research shows some commercial fishing boats are also involved in wildlife trafficking and human smuggling.
Strategic Maritime Assets
China’s presence around the Luconia Shoals—located near Malaysia’s oil and gas fields off Sarawak—remains constant, with coast guard patrols recorded nearly every day in 2024. The area contributes almost 25% of Malaysia’s GDP.
To boost monitoring and response, Malaysia is acquiring more drones, radars, and potentially 33 used F/A-18C/D Hornet fighter jets from Kuwait. The UAVs, set to be based in Labuan by 2026, will provide long-range surveillance over the EEZ.
Naval Base and Inter-Agency Cooperation
A new naval base at Muara Tebas, near Kuching, is in the planning stages. With deep-water access, it could serve as a forward point for Malaysia’s Scorpene-class submarines. The project, relocated from Bintulu, is part of the 13th Malaysia Plan’s priority list.
Malaysia is also enhancing cooperation between the Armed Forces and the coast guard, mirroring China’s dual-force approach in maritime operations.
Quiet Deterrence, Not Confrontation
Despite this military build-up, Malaysia is unlikely to abandon its cautious diplomacy. Analysts describe the strategy as “deterrence by denial”—raising the costs of incursions without provoking escalation. On the regional stage, Malaysia will likely push ASEAN for an enforceable South China Sea code of conduct.
As RSIS researcher Jamil Ghani summarises:
“Malaysia is hedging—reinforcing sovereignty on the ground while preserving diplomatic space for cooperation with Beijing.”
Source: CNA
