KUALA LUMPUR: In the intricate ballet of geopolitics, nations often find themselves dancing on a tightrope, with powerful forces pulling from either side.

For Malaysia, a nation with deep historical ties to both the East and the West, the US-China rivalry is not just a distant power play—it is a dance that could determine its future.

The geopolitical landscape of the 21st century is dominated by the escalating rivalry between the United States and China. This superpower contestation, often perceived in binary terms, has profound implications for Southeast Asia, particularly for Malaysia, which finds itself at the crossroads of these great power dynamics.

The historical ties of Southeast Asia with both China and the U.S. have been complex. As highlighted by the East Asia Forum*, the region has always been a place "where great powers meet."

The past decades have seen the U.S. and China trying to woo the nations of Southeast Asia, with each superpower attempting to convince these states to align more closely with their respective visions for the region.

According to a recent publication by the Carnegie Endowment*, Malaysia, like many of its ASEAN counterparts, is wary of the narratives spun by both the U.S. and China.

While the U.S. emphasizes the threats posed by China in the South China Sea, China underscores the so-called U.S. "Cold War" provocations. This has led to increasing pressure on Malaysia and other Southeast Asian states to choose sides.

However, as the U.S. Institute of Peace* points out, the situation in Southeast Asia is far more complex than a mere two-player game. Countries in the region, including Malaysia, possess agency and are neither completely helpless nor devoid of leverage.

They can shape dynamics to their benefit, complicating the strategic calculations of both the U.S. and China.
Given the intensifying U.S.-China rivalry, especially the politicization of economic supply chains, Malaysia faces challenges to its economic growth and stability.

The rivalry has disrupted the integration trends of the past four decades, upon which Malaysia has built its economic prosperity and diplomatic standing.

However, Malaysia, along with other Southeast Asian nations, sees the rivalry not just as a challenge but also as an opportunity. It offers a chance to diversify relations and choices. The U.S., while a significant security partner, has not been perceived as a major economic ally in recent times. In contrast, China's economic initiatives have gained prominence.

Recommendations for Malaysia

Strategic Neutrality: Malaysia should maintain a balanced approach, avoiding alignment with either superpower. This stance will allow Malaysia to benefit from its relationships with both the U.S. and China without becoming overly reliant on either.

Strengthening ASEAN: Given the importance of multilateralism, Malaysia should work towards strengthening ASEAN as a unified bloc to ensure that the collective voice of Southeast Asia is heard on the global stage.

Economic Diversification: Malaysia should seek to diversify its economic partners, reducing over-reliance on any single country. This includes deepening ties with nations outside the U.S.-China axis, such as Japan, South Korea, and European countries.

Vigilance on Tech Investments: While foreign investments, including those from tech giants like Huawei, can boost Malaysia's tech sector, it is crucial to remain vigilant. Ensuring that these investments do not compromise national security or infringe on the nation's digital sovereignty is paramount.

Public Diplomacy: Engaging in public diplomacy to educate its populace about the U.S.-China rivalry and its implications for Malaysia will be crucial. An informed citizenry can better support the government's policies and decisions in this regard.

The US-China rivalry is reshaping the world, and nations like Malaysia must navigate this new reality with dexterity to ensure that our national interest are preserved and promoted.

By understanding its historical ties, recognizing present challenges, and preparing for the future, Malaysia can ensure that it not only survives this geopolitical dance but thrives in it.

* Ahmad Zaim Ahmad Tawfek used to assist a few Ministers in shaping the right and progressive economic, youth and foreign policies for Malaysia.

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