Trade ties constrain Malaysia’s South China Sea response, says analyst

KUALA LUMPUR: Strong economic ties with China makes it difficult for Malaysia to be more active in meeting confrontations with Chinese vessels in the South China Sea, according to a think tank.

Oh Ei Sun, principal adviser to Pacific Research Center of Malaysia, said the country, as a South China Sea claimant, had successfully steered clear of escalating maritime tensions, thanks to its strong trade and investment ties with China.

“Whether we like it or not”, China is Malaysia’s biggest trading partner, he said.

“This makes it very difficult for Malaysia, as a South China Sea claimant, to adopt a more proactive or prominent attitude when it comes to confrontations involving Chinese vessels,” he said at a forum on the 2024 US presidential election.

Other panellists at the forum were American Malaysian Chamber of Commerce CEO Siobhan Das, Universiti Malaya economists’ Rajah Rasiah and Jawhar Hassan, and Malaysian Association for American Studies president KS Nathan.

Oh suggested that Malaysia should make efforts towards bolstering relations with the United States.

He said the US faces challenges in securing Malaysia’s full support on regional security and the South China Sea dispute and “finds it difficult to persuade Malaysia to take a stronger stance in South China Sea disputes”.

Malaysia is one of several countries with competing territorial claims in the South China Sea, but Oh noted that the country rarely escalates issues involving Chinese naval or maritime enforcement vessels.

He attributed this restraint to Malaysia’s economic reliance on China. He also highlighted how important China is to Malaysia at both federal and state levels.

China remained Malaysia’s largest trading partner and primary source for imports last year, while Malaysia was China’s 10th largest global trading partner.

Last month, China’s ambassador to Malaysia Ouyang Yujing said bilateral trade between the two countries reached over US$117.5 billion in the first eight months of 2024, an increase of 10.8% compared with the same period last year.