In recent weeks, there has been a resurgence of interest in establishing a new naval base in a quiet town in Sarawak after a decade of inactivity. This development aligns with Malaysia‘s potential shift towards a more assertive posture in response to Chinese influence in resource-rich regions near Borneo.

However, experts suggest that while Malaysia plans to construct its latest naval facility in Bintulu, which is closer to the contested waters of the South China Sea, the government is likely to avoid provoking tensions.

Analysts indicated that Malaysia is expected to refrain from adopting more confrontational measures against incursions by Chinese vessels, as the nation aims to uphold its low-profile strategy regarding maritime territorial disputes and maintain its valuable economic relationship with Beijing.

China, which is currently facing its own challenges with the Philippines in the northern strategic waterways, is also inclined to preserve amicable relations with Malaysia. This approach may serve to distance Manila from other Southeast Asian nations with similar claims, according to the analysts.

Dr. Collin Koh, a senior fellow at Singapore’s S Rajaratnam School of International Studies, noted that the establishment of the Sarawak naval base is unlikely to significantly impact China-Malaysia relations, provided that the Malaysian government continues its “non-megaphone” stance on the issue.

He remarked that while the naval base and a potentially heightened Malaysian maritime presence might be perceived as an annoyance by Beijing, the crucial factor remains the political attitude in Kuala Lumpur rather than the developments related to Malaysia’s naval expansion in Borneo.

CHINESE VESSELS OPERATING WITH REGULARITY

The Region 4 Naval Headquarters in Bintulu is set to become Malaysia’s sixth primary naval base, complementing the three existing bases in West Malaysia and two in Sabah.

The Malaysian government has indicated that this new base will enhance surveillance capabilities within the country’s Exclusive Economic Zone (EEZ) in the South China Sea, enabling the navy to deploy ships more swiftly to the area.

Located on a 200-acre site in Samalaju, northern Bintulu, the base will accommodate Malaysia’s three new littoral mission ships. Construction is planned to occur in two phases, with the base anticipated to be officially opened in 2030.

Under the United Nations Convention on the Law of the Sea, a nation holds exclusive rights to explore and exploit natural resources within its EEZ, which extends up to 200 nautical miles (370 km) from its coastline.

Malaysia’s EEZ is rich in oil and gas resources, contributing nearly 25 percent to the nation’s gross domestic product. This includes the Luconia Shoals, known in Malaysia as Beting Patinggi Ali and Beting Raja Jarum, a series of mostly submerged reefs situated 155 km off the coast of Sarawak, among various Malaysian oil and gas sites.

China, which asserts claims over the majority of the South China Sea within its so-called nine-dash line, has consistently objected to Malaysia’s operations in the Luconia Shoals and has maintained a persistent presence in the region. Reports indicate that Chinese coast guard vessels have harassed Malaysian drilling rigs and survey ships.

A report from the Washington-based Asia Maritime Transparency Initiative (AMTI) released on October 1 highlighted tracking data showing that Chinese coast guard vessels operated in Malaysia’s EEZ with remarkable regularity in 2024.

From January 1 to September 27, AMTI observed that at least one Chinese coast guard vessel was present in the area nearly every day, often remaining for up to six weeks before being replaced by another ship.

On August 29, a news outlet in the Philippines released a diplomatic note that was sent to the Malaysian embassy in Beijing back in February, in which China urged Malaysia to halt all activities in the resource-abundant region.

In response to the article, Malaysia affirmed its commitment to safeguarding its sovereign rights in its waters, although it expressed concern regarding the “leak” of the note.

Given the significant implications, Malaysia is likely to exercise caution, as any further escalation could provoke a more severe reaction from China’s significantly stronger naval forces, similar to the predicament currently faced by the Philippines, experts noted.

Dr. Koh noted, “If Malaysia adopts a stance similar to that of the Philippines, we may anticipate China intensifying its actions against Malaysia’s interests in the South China Sea.”

In addition to Malaysia and the Philippines, Brunei, Vietnam, and Taiwan also have competing claims in the South China Sea.

Malaysia has generally downplayed Chinese incursions into its Exclusive Economic Zone (EEZ) and has adhered to its traditional non-confrontational strategy in the South China Sea, opting for diplomatic solutions and striving to prevent tensions from affecting its bilateral relations with China.

In recent months, prominent politicians in Sarawak have publicly called on the federal government to enhance naval presence in the region, citing concerns over China’s activities and the severe implications of losing such a vital economic area to a foreign entity.

On the same day that news of the Chinese diplomatic note emerged, Sarawak’s Minister of Tourism, Creative Industries, and Performing Arts, Abdul Karim Rahman Hamzah, urged for the swift advancement of the naval base construction.

“China has recently gained significant power and boasts a formidable naval fleet, leading to a more assertive stance in expanding its maritime boundaries by displaying its naval capabilities in these waters,” he stated, as reported by Berita Harian.

“Malaysia’s valuable oil and gas resources are located there. What consequences will arise if the sovereignty of that region is compromised by the territorial expansion of a superpower?”

In August, Malaysian Defence Minister Khaled Nordin informed local media that the federal government was nearing the conclusion of negotiations with Sarawak regarding the land price for the naval base, with construction anticipated to commence once an agreement is finalized. However, no completion timeline has been provided.

WILL THE SARAWAK NAVAL BASE COUNTER CHINA?

The establishment of the Bintulu naval base, Sarawak’s inaugural facility, was initially confirmed in 2013 but gained momentum in 2023 after a suitable location was identified within the Samalaju Industrial Park. Previously, it was believed that the waters of Sarawak were too shallow to support a naval base.

Currently, Malaysia has depended on naval vessels stationed at a more remote base in Sabah to monitor its Exclusive Economic Zone (EEZ). Sabah is home to two primary bases: one located in Teluk Sepanggar near Kota Kinabalu and the other in Sandakan.

In September 2023, then-defence minister Mohamad Hasan informed parliament that vessels from the nearest Teluk Sepanggar base would require 19 hours to reach Beting Patinggi Ali, whereas the journey from Bintulu would take only nine hours, assuming both travel at a speed of 12 knots (22 km/h).

The extensive coastlines of Sabah and Sarawak pose significant challenges due to the absence of naval bases, which could hinder accessibility and response times in times of crisis, thereby increasing Malaysia’s vulnerability to external threats, according to an expert.

Dr. Tharishini Krishnan, a senior lecturer at University Pertahanan Nasional Malaysia, noted in a 2021 commentary for the New Straits Times that establishing a base in Sarawak would alleviate the logistical burdens currently placed on Sabah in managing these regions.

Furthermore, she emphasized that the establishment of MAWILLA 4 would counteract China’s ongoing attempts to alter the regional status quo, referring to the Bintulu naval base by its abbreviated name.

Dr. Koh further pointed out that both the Malaysian navy and coast guard are inadequately equipped for effective patrols within the Exclusive Economic Zone (EEZ), as they require vessels capable of extended operations at sea.

He highlighted that the navy’s fleet is aging and in need of modernization, while the coast guard primarily utilizes vessels designed for coastal operations rather than the broader EEZ waters.

Although the new Sarawak naval base will host Malaysia’s upcoming littoral mission ships, which are being constructed to better serve EEZ operations, Dr. Koh indicated that it will take an additional three to four years for these vessels to become fully operational.

He stressed that beyond the new Bintulu base, the critical factor is the availability of physical assets that Malaysia can utilize to protect its interests in the South China Sea, which necessitates more offshore-capable ships along with enhanced maritime domain awareness tools.

Depending on the availability of these assets, Malaysia could potentially deploy at least one ship to the EEZ at any given time to assert its stance against “Beijing’s illegitimate claims,” Dr. Koh added.

Dr. Ian Storey, a maritime security expert at the ISEAS – Yusof Ishak Institute, remarked to CNA that the new base would bolster Malaysia’s “dual-track policy” regarding the South China Sea dispute.

The establishment of the new base will enable the navy to ensure a consistent presence in the oil and gas sectors off Sarawak, while Malaysia seeks to minimize tensions with China to safeguard its economic relationships, according to his statements.

He expressed confidence that the new facility would not adversely affect bilateral relations, as both the navy and coast guard are committed to a non-confrontational stance towards Chinese vessels operating within Malaysia’s Exclusive Economic Zone (EEZ).

On October 2, Royal Malaysian Navy chief Admiral Zulhelmy Ithnain informed reporters that the navy is active in disputed regions but intends to “steer clear of aggressive maneuvers.”

“Our main approach is to resolve conflicts through diplomatic means. Military resources will only be deployed if diplomatic efforts fail, which we do not anticipate will occur,” he was quoted by the Daily Express during a submarine conference.

DIVERSE APPROACHES TO DIPLOMACY

Prime Minister Anwar Ibrahim of Malaysia has expressed his readiness to engage in discussions regarding the territorial dispute with China, a stance that has drawn criticism for appearing overly accommodating. However, Dr. Storey interprets this as a strategic move to de-escalate tensions rather than a sincere offer of compromise.

It is important to highlight that Mr. Anwar has reaffirmed Malaysia’s commitment to continue its exploration and drilling operations in the Exclusive Economic Zone (EEZ), despite China’s objections, a fact corroborated by the AMTI report.

The report states, “In spite of the Chinese coast guard’s interventions, Malaysia has not only maintained its current oil and gas production but has also increased its exploratory efforts,” noting that 15 new exploratory wells were drilled off the coast of Sarawak in 2024.

Dr. Azmi Hassan, a foreign policy expert and member of the National Council of Professors, asserted that Malaysia’s decision to persist with its oil and gas initiatives in the region is “appropriate.”

He remarked, “China’s actions have primarily involved monitoring these projects, and thus far, there have been no significant developments, as diplomacy remains our preferred approach.”

Dr. Azmi emphasized the importance of dialogue with China regarding Malaysia’s EEZ, which is grounded in maritime law. He believes that under such legal frameworks, China lacks a valid claim over Malaysia’s EEZ.

Conversely, Dr. Azmi expressed disagreement with calls from Sarawak for a more assertive response to the dispute, cautioning that Malaysia could find itself at a disadvantage in any physical confrontation with China.

“We should avoid escalating tensions by deploying our navy against China. We do not want to replicate the situation faced by Manila. Even with U.S. support, physical conflict will not resolve the underlying issues,” he stated.