In 2023, the geopolitical landscape surrounding Malaysia's South China Sea territories, particularly Sabah and Sarawak, has become increasingly volatile, necessitating urgent action from the Malaysian government.

With Petronas' significant discovery of over one billion barrels of oil equivalent (bboe) in these regions, the stakes for national security have risen dramatically. Most of these discoveries, driven by an intensive exploration program, are concentrated in the Sarawak Basin and the Northwest Sabah Basin, highlighting the rich potential of these areas.

These substantial hydrocarbon discoveries have placed Malaysia in a precarious position, especially considering China's repeated incursions into Malaysia's Exclusive Economic Zone (EEZ). The presence of Chinese vessels, such as the Haiyang Dizhi 8, in Malaysian waters has been a persistent issue, with incidents reported as recent as June 2023.

This vessel, known for its survey operations near Malaysian interests, underscores Beijing's aggressive stance in the region, often coinciding with new oil and gas activities by Southeast Asian nations.

Malaysia's response to these incursions has been measured yet firm. The Royal Malaysian Navy (RMN) deployed its auxiliary support ship Bunga Mas Lima to counter the presence of the Haiyang Dizhi 8 in June 2023. This deployment is a clear indication of Malaysia's commitment to safeguarding its territorial integrity and natural resources.

Amidst these challenges, the urgency for Malaysia to implement its Defence White Paper (DWP) becomes paramount. The DWP, under the leadership of Defence Minister Mohamad Hassan and Prime Minister Anwar Ibrahim, outlines a strategic framework for enhancing Malaysia's defence capabilities.

The DWP's focus on modernizing Malaysia's military, particularly in maritime defence, is crucial in deterring potential threats from China and protecting the nation's newfound hydrocarbon wealth.

The situation also calls for enhanced regional cooperation and capacity building. Initiatives like the ASEAN Coast Guard Forum and partnerships with the U.S. Coast Guard have provided platforms for Malaysia to strengthen its maritime governance and response capabilities. Such collaborations are vital for Malaysia to assert its claims and protect its interests in the South China Sea.

In conclusion, Malaysia faces a critical juncture in its history. The discovery of vast hydrocarbon reserves by Petronas, coupled with China's assertive maritime behaviour, has put the nation's sovereignty and economic prosperity at risk.

It is imperative that Malaysia accelerates the implementation of its DWP, fortifies its maritime defences, and leverages regional partnerships to safeguard its interests in the South China Sea.

Failure to do so could leave the nation vulnerable to external threats and compromise its sovereign rights over its natural resources.

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* Rahman Hussin interests is in public affairs, politics and stakeholder managements. He runs his own firm that serves a wide range of clients focusing on strategy and government affairs.

** The views and opinions expressed in this article are those of the author(s) and do not necessarily reflect the position of Astro AWANI.