The Indo-Pacific Conflict: Can ASEAN Preserve Regional Peace?

 

The Indo-Pacific is increasingly becoming a strategic theatre where military competition, geopolitical rivalry and competing security interests are converging.

The question is no longer whether the region will experience greater strategic confrontation, but whether regional institutions, particularly the Association of Southeast Asian Nations (ASEAN), possess the diplomatic capacity and political determination to prevent competition between major powers from escalating into armed conflict.

The conclusion of Exercise Malabar 2026, involving India, the United States, Japan and Australia, deserves particular attention. Conducted in Yokosuka, Japan, from November 5 to 12, the annual multilateral naval exercise brought together four countries whose strategic interests increasingly converge around maritime security and maintaining a favourable balance of power in the Indo-Pacific.

According to India's Ministry of Defence (2026), the exercise involved anti-submarine warfare, maritime interdiction, gunnery exercises, replenishment operations and cross-deck landings. These activities demonstrate growing interoperability and operational coordination among the participating navies. More importantly, they reflect the increasing sophistication of maritime cooperation among countries concerned about regional security.

Nevertheless, military interoperability should not automatically be interpreted as preparation for war. Maritime exercises can strengthen deterrence, improve operational readiness and protect freedom of navigation.

However, when viewed against intensifying US-China strategic competition, Taiwan Strait tensions and continuing disputes in the South China Sea, their broader geopolitical implications cannot be ignored.

The Indo-Pacific is therefore facing a strategic dilemma: military cooperation intended to preserve stability could also contribute to a security environment in which competing powers become increasingly suspicious of one another.

The Indo-Pacific's emerging strategic fault lines

The danger is that the Indo-Pacific could become a theatre of confrontation involving several interconnected flashpoints. Taiwan remains particularly sensitive because any military confrontation across the Taiwan Strait would have consequences extending far beyond China and Taiwan.

The United States could become directly involved, while Japan's geographical proximity and security commitments would make it difficult to remain detached. Australia, meanwhile, would face considerable strategic pressure as a security partner of Washington.

For Southeast Asia, the consequences would be immediate. The South China Sea, the Strait of Malacca and surrounding maritime routes are indispensable to international commerce, energy transportation and global supply chains. A regional conflict could disrupt shipping, increase insurance premiums, undermine investor confidence and expose ASEAN economies to severe economic shocks.

The Lowy Institute's Hunter Marston (2026), in Can ASEAN Agree on a Playbook for Indo-Pacific Security?, highlights a fundamental weakness in ASEAN's existing security architecture.

Although the organisation possesses numerous institutions for crisis management, insufficient coordination, political trust and preparedness undermine its capacity to respond effectively.

A Taiwan contingency would be especially challenging, including the protection and evacuation of approximately one million ASEAN nationals living there.

This assessment deserves serious attention. ASEAN cannot assume that diplomatic declarations and summit communiqués will be sufficient when a major military crisis develops. The organisation must prepare for contingencies before they materialise.

The question is therefore not whether the Indo-Pacific will become the next theatre of geopolitical confrontation, but whether its countries can prevent strategic competition from developing into an uncontrollable military crisis.

ASEAN's strategic autonomy must be protected

ASEAN's greatest diplomatic advantage is its ability to maintain relationships with competing powers without becoming formally aligned with either side. However, strategic autonomy must not be confused with political indecisiveness or passive neutrality.

The ISEAS–Yusof Ishak Institute's State of Southeast Asia 2026 Survey Report provides an important indication of regional sentiment. Some 55.2 per cent of respondents favoured strengthening ASEAN's resilience and unity to withstand pressure from the United States and China. Another 24.1 per cent supported maintaining a position of not siding with either power. Only 6.3 per cent believed ASEAN should choose between the two (Lin et al., 2026).

These findings demonstrate that Southeast Asian countries do not want their economic prosperity and national security sacrificed to competing geopolitical ambitions.

China remains an indispensable economic partner for ASEAN, while the United States continues to play an important role in regional security, investment and technological development. Japan, India, Australia, South Korea and the European Union also contribute to the region's strategic and economic environment.

Consequently, ASEAN should pursue an inclusive Indo-Pacific architecture rather than an exclusively military or ideological framework. Its diplomatic position must be grounded in international law, sovereignty, peaceful dispute settlement and freedom of navigation.

This approach is consistent with the ASEAN Outlook on the Indo-Pacific (AOIP), which emphasises ASEAN centrality, inclusiveness, dialogue and cooperation rather than geopolitical confrontation.

However, ASEAN's credibility will ultimately depend on whether its members can translate these principles into practical collective action.

Malaysia must become a diplomatic stabiliser

For Malaysia, the emerging geopolitical environment presents both a challenge and an opportunity. Its geographical position, economic relationships and diplomatic connections place it in a strategically important position between the Indian Ocean and the Pacific.

Prime Minister Datuk Seri Anwar Ibrahim's participation in the 49th ASEAN Summit in Manila, from November 15 to 17, provides an important diplomatic opportunity. According to Malay Mail (2026), his engagements include discussions with ASEAN leaders and dialogue partners, including China, the United States and the United Nations.

Malaysia's participation should be directed towards strengthening regional security cooperation and preventing major-power rivalry from undermining ASEAN unity.

Malaysia must avoid allowing its foreign policy to become excessively dependent on any single geopolitical partner. Its relationships with China, the United States, India, Japan and Australia should be maintained through constructive engagement and clearly defined national interests.

At the same time, Malaysia must recognise that neutrality without credible national defence capabilities can become strategic vulnerability.

The government should therefore strengthen maritime surveillance, naval modernisation, intelligence-sharing, cybersecurity and protection of critical infrastructure. Attention must be given to the South China Sea, where Malaysia has legitimate maritime interests and sovereign rights under international law.

Malaysia should also strengthen cooperation with Indonesia, Singapore, Brunei, the Philippines and Vietnam on maritime domain awareness, search and rescue, intelligence exchange and mechanisms for preventing accidental military escalation.

The objective should not be to establish another military alliance, but to ensure that Southeast Asian countries possess sufficient collective capacity to protect their interests independently.

Preventing the militarisation of the Indo-Pacific

ASEAN must move beyond diplomatic symbolism and develop practical mechanisms to prevent military confrontation. Three initiatives deserve immediate attention.

First, ASEAN should establish a regional maritime crisis-management mechanism involving naval commanders, coast guards and foreign ministries. Direct communication channels and agreed protocols for unplanned encounters at sea would reduce the possibility of miscalculation. The existing Code for Unplanned Encounters at Sea (CUES) should be strengthened through wider regional implementation.

The CUES is a non‑binding 2014 multilateral agreement adopted by 21 Western Pacific Naval Symposium (WPNS) nations to standardize safety, communication, and manoeuvring protocols during unexpected naval encounters.

Second, ASEAN must accelerate negotiations towards an effective and substantive Code of Conduct (COC) in the South China Sea. The agreement should contain practical dispute-management provisions, mechanisms for incident reporting and commitments to avoid coercive activities. It must be consistent with the United Nations Convention on the Law of the Sea (UNCLOS).

Third, ASEAN should develop contingency arrangements for a Taiwan Strait crisis, including civilian evacuation, humanitarian assistance, maritime security and protection of essential supply chains. The Lowy Institute (Marston, 2026) rightly identifies the absence of coordinated evacuation arrangements as a serious institutional weakness.

These initiatives should also involve external partners through ASEAN-led platforms, particularly the ASEAN Regional Forum, East Asia Summit and ASEAN Defence Ministers' Meeting-Plus (ADMM-Plus).

Importantly, ASEAN should not discourage military exercises such as Malabar. Instead, it should encourage transparency, communication and confidence-building measures among all regional military powers. Exercises involving the United States, Japan, Australia and India should coexist with meaningful security dialogue involving China and other regional countries.

The objective must be to prevent military preparedness from becoming an instrument of unnecessary provocation.

The danger of strategic miscalculation

One of the greatest dangers in the Indo-Pacific is not necessarily a deliberate decision by a major power to initiate war, but an unintended escalation arising from military encounters, intelligence failures or political miscalculations.

The historical experience of the Cold War demonstrates how competing military alliances, arms competition and ideological hostility can create an environment in which individual incidents threaten international stability.

Today, the Indo-Pacific faces a more complicated environment because economic interdependence exists alongside military competition. China and the United States remain deeply connected through international trade, technology and investment, while regional economies depend on uninterrupted maritime commerce.

The ISEAS survey demonstrates that Southeast Asia recognises the risks of being caught between competing powers (Lin et al., 2026). Malaysia and other ASEAN members must therefore resist external pressure to transform the region into competing geopolitical camps.

ASEAN also needs greater institutional resilience. Its consensus-based decision-making process remains valuable, but it should not become an excuse for inaction. Where unanimous agreement is impossible, willing member states should be encouraged to advance practical cooperation without undermining ASEAN's collective framework.

Preserving peace must become ASEAN's priority

The strategic significance of Malabar 2026 extends beyond naval interoperability. It illustrates how the Indo-Pacific's security environment is evolving towards greater military coordination among major maritime powers.

Nevertheless, the future of the region should not be determined exclusively by naval capabilities, military alliances or the strategic calculations of Washington and Beijing.

Malaysia and ASEAN must establish themselves as active architects of regional stability rather than passive observers of major-power competition.

The central lesson is straightforward: ASEAN cannot prevent every geopolitical rivalry, but it can reduce the likelihood that rivalry develops into armed confrontation. This requires stronger institutions, credible defence capabilities, economic resilience, diplomatic engagement and an unwavering commitment to international law.

If the Indo-Pacific becomes another theatre of superpower confrontation, the consequences will extend far beyond the countries directly involved. Southeast Asia could become one of the greatest casualties of a conflict it neither initiated nor desired.

The challenge facing Anwar Ibrahim and other ASEAN leaders is therefore not simply to maintain diplomatic relationships with competing powers. It is to ensure that the Indo-Pacific remains a region of cooperation, commerce and peaceful coexistence.

ASEAN must not allow the Indo-Pacific to become another battlefield for superpower ambitions. Its strategic future must be defined by regional cooperation, not geopolitical confrontation.

References

Indian Ministry of Defence. (2026, November 5). Indian naval ship Sahyadri arrives at Yokosuka Naval Base, Japan for Exercise Malabar 2026. Press Information Bureau. https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2333046

Indian Ministry of Defence. (2026, November 13). INS Sahyadri concludes visit to Yokosuka following Malabar 2026. Press Information Bureau. https://www.pib.gov.in/PressReleseDetailm.aspx?PRID=2335989&reg=48&lang=2

Lin, J., Martinus, M., Fong, K., Thao, P. T. P., Aridati, I. Z., & Gauri, S. (2026). The state of Southeast Asia: 2026 survey report. ISEAS–Yusof Ishak Institute. https://www.iseas.edu.sg/frontpage-featured/the-state-of-southeast-asia-2026-survey-report/

Marston, H. (2026, September 30). Can ASEAN agree on a playbook for Indo-Pacific security? Lowy Institute. https://www.lowyinstitute.org/publications/can-asean-agree-on-a-playbook-for-indo-pacific-security

Malay Mail. (2026, November 14). Anwar lands in Manila for Asean summit before brief dash back to meet Macron. https://www.malaymail.com/news/malaysia/2026/11/14/anwar-lands-in-manila-for-asean-summit-before-brief-dash-back-to-meet-macron/243286

Rajesh, G. K., & Deshpande, M. (2025). Hedging with the Indo-Pacific: Why Southeast Asia might benefit from embracing the construct. The Round Table, 114(4), 463–475. https://www.tandfonline.com/doi/full/10.1080/00358533.2025.2511000

Tan, E. R. L., & Fook, L. L. (2025). Assessing China's call for "strategic autonomy" in Southeast Asia: Origins, objectives and outcomes. ISEAS Perspective, 2025(22). ISEAS–Yusof Ishak Institute. https://www.iseas.edu.sg/articles-commentaries/iseas-perspective/2025-22-assessing-chinas-call-for-strategic-autonomy-in-southeast-asia-origins-objectives-and-outcomes-by-eugene-r-l-tan-lye-liang-fook

14.11.2026

Kuala Lumpur.

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