Malaysia’s security depends on shrewd diplomacy
Unveiling the 13th
Malaysia Plan in parliament
on 31 July, Prime Minister Anwar Ibrahim underlined the importance
of regional security to Malaysia’s 2026-2030 development roadmap.
He
singled out the South China Sea, declaring that Malaysia’s
“readiness to confront sovereignty and security
threats in the South China Sea will be intensified more comprehensively.”
Without naming specific countries, the Prime Minister’s statement
reflects a clear understanding that the strategic environment in the Asia-Pacific
is becoming increasingly dangerous. China, which is Kuala Lumpur’s largest
trading partner and with which it shares deep historic
and cultural connections, is becoming more assertive in the region, matched by record
defence spending.
Of real concern for Putrajaya are Beijing’s infringements on its
maritime sovereignty. Last year, the China Coast Guard (CCG) spent 261
days in the northeastern area of Malaysia’s
Exclusive Economic Zone (EEZ).
While Putrajaya should maintain its close relationship with China,
it is rightly preparing for an increasingly contested region.
Deeper defence relationships with like-minded nations – Australia
and Japan stand out as logical partners - are the best way forward.
In a sign that Putrajaya is taking sound steps, Malaysian firm
Westar Defence Industries formalised collaboration with Australian defence company Rocket Technologies
last month, which will enable Malaysia to start manufacturing rockets
domestically by 2028.
The agreement came during Defence Minister Datuk Seri Mohamed
Khaled Nordin’s working visit to Australia in early July. Commenting on the
agreement, the defence minister captured its importance: “This initiative will
not only strengthen industrial capability but also contribute to the
development of a sustainable and competitive domestic defence sector.”
Indeed, the development of Malaysia’s domestic defence industry is
crucial given that countries can withdraw from agreements at any time. Norway’s
surprise decision to revoke export licences for the Naval Strike Missile system
destined for Malaysia’s littoral combat ship programme is a recent and sore
example.
The Rocket Technologies-Westar Defence Industries agreement is
exactly the kind of partnership Malaysia should seek to replicate.
Putrajaya and Canberra’s collaboration is not limited to just equipment
transfers. In early May, the two nations carried out the Malaysia-Australia
Training Exercise (MASTEX) off Australia’s west coast, a
naval exercise that strengthened operational integration and cooperation.
Malaysia has also continued to deepen its defence cooperation and
exchanges with Japan, another standout security partner. Officials from
Malaysia’s Ministry of Defence and armed forces observed the Michinoku Alert humanitarian assistance and disaster relief
exercise held in Japan in 2024. The MALPAN bilateral naval exercise conducted
in April this year demonstrated that the two countries continue to strengthen
their defence cooperation while steadily building operational trust.
Malaysia should continue to deepen interoperability through more
naval, land and air exercises with Japan and Australia. Combat-ready forces and
relationships will be key to defending Putrajaya’s sovereignty.
Elevated Japan-Malaysia defence cooperation has been underpinned
by the Comprehensive Strategic Partnership, signed in 2023.
Indeed, as evidence of the strong partnership, in late 2025, Tokyo
supplied Putrajaya with 14 unmanned aerial vehicles (UAVs) and seven rescue
boats under its Official Security Assistance (OSA) programme.
Malaysia is also charting its own path towards improving its
deterrence capability and security. Earlier this year, Prime Minister Anwar
warned that, amid escalating global tensions, Malaysia cannot take its security
for granted. Putrajaya is pursuing asymmetrical warfare capabilities, focusing on low-cost, mass-produced weapons
such as drones and rockets.
While Putrajaya-Tokyo defence cooperation is necessary, the partnership
is broader than just security, ranging from industry to energy and more.
In March, the Embassy of Japan in Malaysia hosted an industrial cooperation seminar, bringing together senior
government figures and industry leaders. Later in the year, in May, Daihatsu announced that it would begin manufacturing hybrid vehicles (HV) at the
plant of Malaysia’s largest automaker, Perodua, marking its first overseas HV
production.
The agreement was welcomed by Prime Ministers Anwar and Sanae Takaichi in a joint statement
following their June meeting in Tokyo.
Energy cooperation is another important pillar of the
Japan-Malaysia partnership. Putrajaya has signed a letter of intent on cooperation in energy security under the
Japan-led POWERR Asia initiative, which seeks to secure energy supply chains
and counter disruptions.
The agreement is already yielding
dividends, and Petronas announced in June that it will
supply JERA, Japan’s largest power generation company, with 2 million metric
tons of liquefied natural gas per year for 20 years.
Putrajaya and Tokyo’s growing
practical cooperation across energy, industry and defence is a step in the
right direction, and the partnership is guided by a mutual
understanding of what the regional order should look like.
The Free and Open Indo-Pacific (FOIP) vision, originally developed
by the late former Japanese Prime Minister Shinzo Abe, and ASEAN’s Outlook on
the Indo-Pacific (AOIP), which Malaysia is a key proponent of, both emphasise
freedom of navigation and opposition to coercion.
Malaysia must continue pursuing deepened
cooperation with partners that value its sovereignty. This will allow Putrajaya
to navigate through choppy geopolitical waters, which the two superpowers have
done little to calm.
Kuala Lumpur.
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