Why Malaysia has stayed quiet but firm on South China Sea: ‘let sleeping dogs lie’

In reality, however, the Anwar government’s stance on the maritime dispute remains broadly consistent with that of its predecessors. And for good reason.

First, Malaysia seeks to steadfastly assert and defend the country’s territorial claims and sovereign rights inside its exclusive economic zone (EEZ).

Malaysia has deployed military personnel to the five atolls it occupies in the contested Spratly Islands, while the Malaysian navy and coastguard maintain a constant vigil in the country’s EEZ, monitoring, but not challenging, China’s activities. Since 2019, Malaysia has publicly rejected China’s nine-dash line claim, calling it “ridiculous”.

Second, Kuala Lumpur tries hard to decouple the dispute from the country’s vital economic ties with China, its largest trade partner and an important, if sometimes controversial, source of investment.

The third prong is to support the Asean-China conflict management process – that is, the ongoing negotiations for a Code of Conduct – and promote a peaceful resolution of the dispute through negotiations

Regarding the latter, Malaysia has consistently dangled the prospect of bilateral talks in front of China, possibly leading to the joint development of hydrocarbons. However, as Kuala Lumpur has exclusive rights to all living and non-living resources within its EEZ, it has never had any serious intention of discussing joint development with Beijing, let alone the sovereignty issue.

Since taking office in November 2022, Anwar’s government has adhered to this three-pronged policy.

The Anwar administration has not compromised Malaysia’s territorial claims or sovereign rights in the South China Sea. The state-owned energy company Petronas continues to drill for oil and gas in the country’s EEZ. On