By INS Contributors

KOTA KINABALU, Malaysia-Even as it faces threats over its claims in the South China Sea and an increasing dependency on cheap capital and loss of control over vital sectors, Malaysia still seems on the path of appeasement vis-a-vis China, putting its sovereignty and future at risk, according to an analyst.

China claims sovereignty over almost the entire South China Sea, through which about 3 trillion U.S. dollars worth of ship-borne trade passes annually. Malaysia, Brunei, the Philippines, Taiwan and Vietnam have some overlapping claims.

The Permanent Court of Arbitration, however, ruled in 2016 that the nine-dash line, which stretches as far as 1,500 km off its coastline, has no legal basis.

Malaysia has taken a misguided path of appeasement - being bought out by China with cheap and readily available capital in exchange for lowering its voice and expectations of its strategic waterways, a policy that is decidedly harmful according to Collins Chong Yew Keat.

Chong, who is with Universiti Malaya and focuses on internationalisation and strategic management, cautioned that Malaysia is failing in its so-called “middle ground” approach in not being vocal on its claims in the South China Sea, let alone trade imbalances and the Uyghur issue, while being undermined by Beijing's powerful economic leverage and other coercive tools.

“Malaysia tried to separate the issue of South China Sea from the overarching spectrum of comprehensive bilateral ties between KL-Beijing, with the hope of this not having any bearing on the need to further deepen economic ties. However, Malaysia does not share other regional players'  strategic wisdom and manoeuvres in opening up for more Western security assurances, and this is the area where Beijing is exploiting the most,” he said.

“By pushing countries further under its own orbit of influence and economic order through a carrot and stick approach, Beijing has been gaining momentum in rebuilding its image in the Global South and in playing the victim card in giving the clarion call of rising up against Western neo-imperialism and in building regional strength and identity,” he added.

Tightening noose

Chong observed that this trend has only become more acute with the highly publicised and controversial visit and participation at the Boao Forum for Asia (BFA)'s annual conference, in China's island province of Hainan, frequently being used to trot out President Xi Jinping’s diplomatic conquests.

“The trip to China has already been seen as a huge win for Beijing, and exposes the deep vulnerability and the ingrained sense of being a desperado on Malaysia’s part, in scrambling and being desperate for Beijing’s as a  source of capital and investment…We must urgently regain our chips and cards, and to widen our playbook by pulling in greater depth of Western support and affiliation,” he said.

There has been tension between the Southeast Asian country and its expansionist northern neighbour with ships from Malaysia's state-owned oil and gas firm Petroliam Nasional Bhd (Petronas) operating in oil and gas fields within Malaysia's 200-mile exclusive economic zone (EEZ) facing intrusions by Chinese vessels.

SCS as a flashpoint

Malaysia, despite its current dependency on China over economic ties, is however positioned to easily expand and diversify its ties as geopolitical tensions draw greater Western attention into the area with AUKUS, a trilateral security pact between Australia, the United Kingdom, and the US to assist Australia in acquiring nuclear-powered submarines.

Additionally the US is ramping up its presence in the Philippines having committed 80 million U.S. dollars to infrastructure investments at the five current bases: the Antonio Bautista Air Base in Palawan, Basa Air Base in Pampanga, Fort Magsaysay in Nueva Ecija, Benito Ebuen Air Base in Cebu and Lumbia Air Base in Mindanao, in addition to opening new bases.

Vietnam has an openly aggressive approach towards China’s encroachment of its watersbut Cambodia is already seen as a staging base for units of China’s armed forces who are likely to operate from the Ream Naval Base and Malaysia is seen as keeping silent over incursions into its own EEZ.

Solutions require political will

Chong said Malaysian leaders must come out openly and take a stand against the threats posed to its sovereignty and EEZ claims as its current policy of strategic ambiguity has not yielded results while alienating its traditional Western allies, and finding its voice on international issues increasingly stifled.

However Chong remained optimistic that Malaysia will move to secure its interests as evidenced by its tacit support of AUKUS and frequent and vital freedom of navigation exercises in the South China Sea by Western powers, despite its current lack of urgency in responding to the challenges imposed on it by Beijing.

“Finland has just joined NATO, after 70-years of neutrality, as it is realistic, truthful and wise enough to act on common sense measures to safeguard its own interests and survival amidst changing and stark realities on the ground with Russia’s new intent,” he said.

“It remains a pity that Malaysia is still trapped in its own ignorance and self-delusion of its own utopian perspective of changing security calculations, and self-defeating actions of futile and clueless submission of faith to the same bet of decades old strategy.”

“It takes courage, unyielding principles, and resolute conviction and faith in stating the truth, pointing out the reality and in righting the wrongs and playing the expected norms and obligations as a responsible global player. Malaysia will be respected for these credentials and principles, not through continuous hedging, balancing or reliance on the disguised approach of neutrality,” he added.