Prime Minister Datuk Seri Anwar Ibrahim's recent statement that Malaysia will not yield to China's demand to immediately cease hydrocarbon exploration activities in its contested waters in the South China Sea sends a strong message.
That Kuala Lumpur is unwavering in its commitment to safeguard its sovereignty and economic interests.
This firm stance reflects Malaysia's longstanding policy of defending its rights and interests in the region while seeking peaceful resolutions to disputes and maintaining diplomatic engagement with other claimants.
The classified content of Beijing's diplomatic note, sent to the Malaysian embassy in February 2024, came to light when The Philippine Daily Inquirer, one of the Philippines' leading daily newspapers, reported on it on August 29.
China reportedly accused Malaysia of encroaching on its claimed territory within the 10-dash line and demanded KL to immediately halt all activities in the area. This is not the first time Beijing has issued a diplomatic note protesting KL's actions in disputed areas of the South China Sea.
Sending diplomatic notes is a standard practice among sovereign nations to convey official messages and positions on various issues. Among rival claimants in disputes, such formal communications are commonly used to express displeasure and to lodge protests.
The content of these classified diplomatic notes is rarely revealed to the public. However, the recent leak published by a Filipino media outlet is an exception, revealing sensitive details without authorisation from either party.
Malaysia's approach can be perceived as a balancing act - asserting its sovereignty and protecting its economic interests while maintaining a close diplomatic relationship with China. Anwar's recent statements suggest a more assertive stance, albeit still rooted in diplomacy. Malaysia is committed to using peaceful means and avoiding provocation or hostility towards other claimants.
In contrast to other claimants, such as the Philippines and Vietnam, Malaysia has traditionally opted for a more discreet and diplomatic approach in its dealing on the South China Sea dispute with China. Kuala Lumpur has frequently refrained from openly criticising Beijing, influenced in part by the enduring ties between the two countries.
China has been Malaysia's largest trading partner for more than a decade, bolstered by over 50 years of strong diplomatic relations. The emphasis on diplomacy reflects Malaysia's recognition of China as a significant partner while also underscoring the necessity of defending its own territorial claims and economic rights.
Anwar has made it clear that Malaysia is not willing to compromise on its sovereignty or economic interests within its maritime territory in the South China Sea.
The vital contribution of the oil and gas industry to Malaysia's energy security, export revenues and economic growth cannot be overstated. The country's major offshore oil and gas fields are predominantly located in this semi-enclosed sea. Among them, the Kasawari gas field, situated adjacent to the contested Luconia Shoals off the coast of Sarawak, is crucial for Malaysia's future energy sector.
Significant investments have been made in surveying, constructing and operating this field, which is set to become part of the world's largest offshore Carbon Capture and Storage project when it begins full operation next year.
Despite this, Beijing has demanded that the project cease operations, claiming the field falls within its claim. Given the considerable investment in the project and its clear location within Malaysia's Exclusive Economic Zone (EEZ), it would be unreasonable for us to even consider halting its operations.
Anwar's firm response to Beijing's demands can be viewed as a calculated and strategic move to stand firm when confronting China on sensitive issues such as maritime territorial disputes. This move sends a clear message that Malaysia will not yield on matters of national importance.
The timing of the release of this leaked diplomatic note by a Filipino media outlet coincides with a series of recent tense encounters between the Chinese coast guard and Philippine supply vessels near the contested Second Thomas Shoal in the Spratly Islands.
This disclosure has compelled Malaysia not only to clarify its position on the South China Sea dispute to its Asean partners but also to forcefully reaffirm its longstanding stance to the international community on the sensitive issues surrounding the area - a region marked by competing territorial claims as well as geo-strategic and economic importance.
Nowhere is the need for clarification more evident than in Malaysia's response to China's increasingly provocative actions within its EEZ. As Malaysia prepares to assume the Asean Chairmanship next year, its role in facilitating negotiations to finalise a legally binding Code of Conduct in the South China Sea and persuading China to accept it will be closely scrutinised, especially by other claimants.
Malaysia's effort, if successful, in guiding China to accepting this binding instrument could set a significant precedent for regional maritime governance and stability in the years to come.
* The writer is Associate Professor and Director, Asian Institute of International Affairs and Diplomacy, School of International Studies, Universiti Utara Malaysia