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Malaysia's Strategic Response to U.S. Grand Strategy

The global geopolitical landscape is in flux, with shifting power dynamics, emerging global challenges, and evolving national interests. For Malaysia, as a key Southeast Asian nation, the strategic choices it makes in response to the United States’ grand strategy will have far-reaching consequences for its future in the region.

Stephen Walt, the Robert and Renée Belfer Professor of International Affairs at the Harvard Kennedy School, presents a realist framework for U.S. foreign policy, arguing for restraint, strategic alliances, and a focus on economic and diplomatic power.

In this analysis, we will examine how Malaysia should navigate U.S. grand strategy based on Walt’s insights, balancing its own national interests while avoiding unnecessary entanglements in global power struggles.

The Case for Restraint: Managing U.S. Overreach

A central argument in Stephen Walt’s realist approach is the idea of strategic restraint. According to Walt, the U.S. has consistently overextended itself, particularly in the Middle East, with interventions in Iraq and Afghanistan, which have led to long-lasting military entanglements without clear outcomes.

Walt argues that these interventions, often driven by idealistic goals or misplaced ambitions, have drained resources, strained the U.S. military, and created instability rather than securing long-term peace.

For Malaysia, this framework offers valuable lessons. As a nation situated in the heart of Southeast Asia, Malaysia has historically maintained a policy of non-alignment, emphasizing diplomatic engagement and economic cooperation without committing to military interventions.

However, as global power dynamics shift and the U.S. navigates a policy of selective engagement, Malaysia must ensure that it avoids becoming a passive player in broader geopolitical struggles. In particular, Malaysia should adopt Walt’s idea of restraint and prioritize national interests over the desire to align with any particular power, whether that’s the U.S., China, or regional powers.

Malaysia should focus on strengthening its own regional relationships and cultivating economic ties with both the U.S. and China, without being drawn into the rivalry between these two superpowers.

While the U.S. remains an important strategic partner for Malaysia particularly in trade, technology, and defence, Malaysia should not overcommit itself to U.S. military or strategic aims that do not align with its own national interests.

Instead, Malaysia should take a pragmatic approach, ensuring that its involvement in global issues is aligned with its core objectives: economic growth, regional stability, and the protection of its sovereignty.

Emphasizing Practicality Over Ideology

Another central tenet of Walt’s realist philosophy is the importance of rational alliances. In his view, the U.S. should pursue alliances based not on ideological affinity but on practical considerations of security and mutual benefit. This is particularly relevant for countries like Malaysia, which is situated in a volatile region where global powers often vie for influence.

Historically, Malaysia has had a delicate balancing act in managing its relationships with both the U.S. and China. While Malaysia is part of the U.S.-led Indo-Pacific strategy, it has also deepened economic and diplomatic ties with China, particularly through China’s Belt and Road Initiative (BRI). In the face of rising tensions between the U.S. and China, Malaysia’s challenge lies in aligning itself strategically without overcommitting to one side or the other.

Walt’s realist approach suggests that Malaysia should continue to engage with both the U.S. and China, but in a manner that prioritizes its own national interests rather than adhering to a particular global bloc.

Malaysia could strengthen its role in regional frameworks such as ASEAN, which provides a platform for Southeast Asian nations to assert their collective interests. This ensures that Malaysia’s foreign policy remains independent and non-aligned, allowing it to negotiate favourable terms with both powers.

In practice, this means Malaysia should avoid being drawn into security arrangements that would obligate it to take sides in any future U.S.-China conflict. Instead, Malaysia should focus on regional security architectures, such as the ASEAN Regional Forum (ARF) and the East Asia Summit (EAS), where it can foster multilateral diplomacy and engage with both great powers while safeguarding its autonomy.

Leveraging Soft Power and Economic Resilience

Stephen Walt emphasizes the importance of economic strength as a cornerstone of U.S. national security. In a realist framework, economic power not only enables countries to secure their national interests but also acts as a tool of influence and soft power.

For Malaysia, this aspect of Walt’s strategy is particularly relevant. As a rapidly developing economy in Southeast Asia, Malaysia’s economic policies must prioritize self-reliance, innovation, and global competitiveness.

A realist grand strategy for Malaysia would involve strengthening its domestic economy to reduce dependency on external powers. This could include investing in technological innovation, enhancing trade relationships with key partners, and diversifying Malaysia’s sources of foreign investment.

The country should continue to work with the U.S. and China, but it should also look beyond these two powers, cultivating relationships with other rising economies in Asia, Europe, and the Middle East.

In addition, Malaysia should continue to position itself as a key player in regional economic initiatives like the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). By promoting free trade and reducing barriers to investment, Malaysia can ensure that it benefits from global economic integration while safeguarding its own economic sovereignty.

Moreover, Malaysia’s economic strategy should include an emphasis on developing its human capital. By investing in education, fostering innovation, and promoting digital transformation, Malaysia can ensure that it remains competitive in the global economy.

A strong economic base would not only support Malaysia’s national security but also provide it with the leverage to influence global trade policies and investment flows.

Diplomacy and Soft Power

Finally, Stephen Walt advocates for the use of diplomacy and soft power to shape global outcomes without resorting to military intervention. In Malaysia’s context, this means continuing to play a proactive role in multilateral institutions like the United Nations, ASEAN, and the World Trade Organization. Malaysia should also enhance its role as a mediator in regional conflicts and a champion of global issues like climate change, non-proliferation, and human rights.

By building a reputation as a neutral and constructive diplomatic actor, Malaysia can attract international support for its policies and amplify its influence in global discussions. This would also help Malaysia navigate the complex diplomatic terrain between the U.S. and China, allowing it to maintain positive relations with both while asserting its sovereignty in decision-making processes.

Moreover, Malaysia could further enhance its soft power by promoting its culture, educational institutions, and technological innovations on the global stage. By leveraging these non-coercive forms of influence, Malaysia can build a reputation as a respected leader in the region and beyond.

A Pragmatic, Balanced Approach

In conclusion, Malaysia’s response to the U.S. grand strategy should be guided by a pragmatic, realist approach that emphasizes strategic restraint, rational alliances, and economic resilience.

Drawing on the insights of Stephen Walt, Malaysia should avoid overcommitment to any one global power, instead focusing on its national interests and strengthening its position within regional and international frameworks.

By balancing its relationships with both the U.S. and China, promoting economic independence, and using diplomacy to enhance its global standing, Malaysia can navigate the complexities of the current geopolitical environment and emerge as a key player in the global order.

22.9.2025

Kuala Lumpur.

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Malaysia’s strategic response to the US’ grand strategy - Edited version.


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