Malaysia S Approach To Maritime Diplomacy Cautious Steps Firm Ground

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THE recent statement by Defence Minister Datuk Seri Mohamed Khaled Nordin that China supports the development of a South China Sea Code of Conduct (COC) underscores Malaysia’s cautious but strategic approach to maritime diplomacy.
Behind the diplomatic language lies Kuala Lumpur’s balancing act by protecting its territorial sovereignty and economic interests while maintaining stability and constructive relations with Beijing. Malaysia’s treatment of the COC process reflects its deliberate caution: an understanding that preserving and protecting national territory requires both firmness and finesse.
Malaysia’s approach to the South China Sea is defined by three interlocking objectives: safeguarding sovereignty, preserving regional peace, and avoiding great-power entanglement.
On sovereignty, Malaysia has long maintained that disputes must be resolved through diplomacy and international law, particularly the United Nations Convention on the Law of the Sea (UNCLOS). Kuala Lumpur rejects China’s “nine-dash line” claim as having no legal basis, but it also stops short of public confrontation.
Datuk Seri Anwar Ibrahim (Image: Reuters/Liesa Johannssen)Instead, Malaysia quietly asserts its rights by continuing exploration and resource extraction activities within its Exclusive Economic Zone (EEZ). Prime Minister Datuk Seri Anwar Ibrahim’s government has made clear that Petronas’ offshore energy operations will continue, despite Chinese protests.
This steady assertion of maritime rights without sabre-rattling exemplifies Malaysia’s quiet confidence in law and diplomacy.
Equally central is Malaysia’s commitment to regional stability. As a founding member of ASEAN, Malaysia views the South China Sea as a shared regional concern, not an arena for power projection. It consistently stresses that the sea must not become a battleground between the United States and China.
Anwar has often reiterated Malaysia’s non-aligned stance, warning that attempts to “contain China” only heighten tensions.
Meanwhile, Khaled has called continued dialogue the “surest path to peace”, highlighting Malaysia’s belief in communication over confrontation. This preference for dialogue reflects both strategic necessity and diplomatic culture: Malaysia knows that sustaining calm waters requires patient engagement.
Malaysia’s cautious stance is not born of weakness but of realism. The nation’s maritime geography places it at the heart of vital shipping routes and resource-rich zones, making it acutely vulnerable to external pressure.
Its naval capacity, while modernising, remains modest compared to China’s expanding presence. In such circumstances, prudence is strength. Malaysia relies on multilateral diplomacy, international law, and ASEAN’s collective weight as stabilising tools.
Moreover, economic pragmatism underpins its restraint: China is Malaysia’s largest trading partner and a significant investor.
Alienating Beijing could jeopardise vital sectors of Malaysia’s economy. Yet, Malaysia also recognises that appeasement is not an option. Thus, its foreign policy is guided by strategic ambiguity—firm in defending sovereignty, flexible in managing relationships.
(Image Asia Times)A binding Code of Conduct offers Malaysia an avenue to institutionalise this balance. Through the COC, Malaysia seeks to embed international norms that constrain unilateral actions and ensure freedom of navigation.
It wants the code to explicitly recognise rights under UNCLOS, safeguard economic activities in its EEZ, and establish mechanisms to manage incidents at sea. The COC must also reflect ASEAN centrality, ensuring that regional voices, not external powers, shape the maritime order.
Malaysia’s vision for the COC thus extends beyond conflict prevention that it is about embedding fairness, predictability, and respect for sovereignty into the South China Sea’s governance.
For Malaysia, caution in the negotiation process is essential because a poorly structured code could be counterproductive. If the terms are too favourable to Beijing, Malaysia risks legitimising encroachments that erode its maritime rights. A weak code could fragment ASEAN’s unity, leaving smaller states vulnerable to pressure.
Moreover, overly rigid commitments could reduce Malaysia’s strategic flexibility in responding to changing dynamics, such as increased militarisation or foreign naval activity. Hence, Kuala Lumpur’s negotiators tread carefully, ensuring that engagement with China does not translate into acquiescence.
Timing also heightens the stakes. As ASEAN seeks to finalise the COC by 2025, Malaysia is set to play a central role as ASEAN chair to ensure that progress does not come at the cost of principle. China’s stated willingness to accelerate the process is encouraging, but it also introduces pressure to conclude the talks swiftly.
Malaysia’s caution acts as a safeguard against haste. It insists that speed must not compromise substance, that any agreement must genuinely strengthen legal order and maritime security.
This balancing act extends beyond diplomacy into Malaysia’s broader strategic posture. By maintaining open dialogue with Beijing while reinforcing cooperation with other partners such as the United States, Japan, and Australia.
(Image: Reuters)Malaysia seeks to diversify its relationships without choosing sides. Its participation in multilateral defence forums and freedom-of-navigation dialogues complements its bilateral engagement with China. In effect, Malaysia’s approach is one of “calibrated openness”: engaging all, aligning with none.
At the heart of Malaysia’s cautious diplomacy is a sober understanding of geography and power. As a middle power situated at a maritime crossroads, Malaysia cannot afford to provoke, but neither can it afford to yield. Its strategy, therefore, rests on maintaining agency through law, diplomacy, and regional cooperation.
The COC process, if navigated prudently, offers Malaysia a chance to lock in legal protections for its maritime rights and reduce the risk of escalation. But that opportunity comes with the responsibility to resist pressures whether from Beijing or other external actors that could tilt the code away from balance and fairness.
Malaysia’s careful handling of the South China Sea issue shows that caution can be a form of strength. It demonstrates that sovereignty can be defended not only by fleets and bases, but also by patience, persistence, and principle.
As negotiations on the COC move forward, Malaysia’s role will be pivotal. Its insistence on diplomacy grounded in law and mutual respect could determine whether the South China Sea becomes a sea of cooperation or contention.
In that sense, Malaysia’s cautious steps are not hesitant but they are deliberate. Each move is designed to ensure that, amid the shifting tides of regional power, Malaysia’s ground remains firm. 
R Paneir Selvam is the principal consultant of Arunachala Research & Consultancy Sdn Bhd (ARRESCON), a think tank specialising in strategic national and geopolitical matters.
The views expressed are solely of the author and do not necessarily reflect those of  MMKtT.
- Focus Malaysia.

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