1. The Malay Chamber of Commerce Malaysia (MCCM) takes a serious view of the increasing encroachment and provocations by Chinese Coast Guard (CCG) vessels in Malaysian waters in the South China Sea, particularly around Beting Patinggi Ali, Sarawak. These activities threaten economic stability and may undermine Malaysia’s economy by shaking investor confidence and disrupting international trade.
2. The presence of these vessels not only hampers the smooth operations of PETRONAS’ offshore oil platforms but also affects the livelihoods of local fishermen who fear for their safety. China’s apparent disregard for respecting the maritime boundaries of ASEAN countries, including Malaysia, may strain the long-standing bilateral relations between the two nations.
3. The small islands known as Beting Patinggi Ali (BPA), named after a prominent Malay leader from Sarawak, are also referred to as Luconia Shoal or Beting Raja Jarum. China’s claim over BPA, which they call Beikang Ansha or Nankang Ansha, is geographically unjustifiable, as the island is over 2,000 kilometers from mainland China, compared to only 155 kilometers from the shores of Miri, Sarawak.
4. According to the United Nations Convention on the Law of the Sea (UNCLOS) 1982, coastal nations have the right to claim an Exclusive Economic Zone (EEZ) of up to 200 nautical miles. This places Beting Patinggi Ali, which is located in Sarawak’s waters, firmly within Malaysia’s EEZ.
5. Under the Malaysian Exclusive Economic Zone Act of 2006, Malaysia strictly regulates maritime activities in the Beting Patinggi Ali region to protect national sovereignty and preserve the marine and historical heritage. BPA is rich in natural resources, including untapped natural gas, oil, and marine life, with four existing PETRONAS oil and gas platforms located just under 25 kilometers from BPA’s boundary.
6. China’s aggressive actions in sending not only advanced patrol vessels but also research ships, spy planes, scrap ships, and undercover intelligence operatives disguised as Chinese fishermen, have escalated since 2013. These efforts, aimed at claiming China’s ‘historical maritime rights’ in the South China Sea, have never been internationally recognized.
7. The Malaysian Ministry of Defence (KEMENTAH) confirmed in a National Audit Report that CCG and Chinese Naval vessels intruded into Malaysian waters 89 times between 2016 and 2019, most of which occurred at Beting Patinggi Ali.
8. The South China Sea, rich in natural resources such as oil, gas, and marine produce, attracts the attention of various stakeholders. Despite the presence of contested hotspots, ASEAN member states have historically respected their neighbors’ sovereignty and refrained from encroaching. However, China’s increasingly unrestrained behavior, akin to a “big brother” vying for control, could spark a prolonged diplomatic crisis if left unchecked.
9. In related developments, PETRONAS announced in early December 2023 the success of its oil and gas exploration efforts offshore in Sarawak and Sabah, targeting over one billion barrels of crude oil. However, the frequent presence of Chinese patrol vessels has hampered these efforts and placed undue pressure on PETRONAS and its local vendors.
10. The persistent presence of CCG vessels in Malaysian waters is viewed as a provocative act, challenging Malaysia to defend its territory. The significant increase in encroachment activities appears to be influenced by the release of China’s ‘2023 Standard Map,’ which has been immediately opposed not only by Malaysia but also by ASEAN members such as Indonesia, the Philippines, Vietnam, and countries including India, Japan, and Taiwan.
11. Previously, China sought to claim nearly 80% of the South China Sea, including areas within the EEZ of Malaysia, Brunei, Indonesia, the Philippines, Singapore, Vietnam, and Taiwan through its “Nine-Dash Line.” The new map, with an added “10th dash,” now includes Taiwan and a significant portion of the Spratly Islands, blatantly violating UNCLOS 1982.
12. Beyond economic control, China’s domination of the South China Sea also aims to secure strategic geopolitical advantages. This body of water is a critical shipping route for global trade and is key to China’s aspirations for regional and global dominance.
13. Malaysia has responded to these encroachments by deploying its Navy and Coast Guard to expel foreign vessels. To date, seven diplomatic protest notes have been sent to Beijing, with the last one issued in May 2021. MCCM appreciates the firm stance of former Minister of Defence, Datuk Seri Mohamad Hasan, who affirmed that Beting Patinggi Ali belongs to Malaysia and that no foreign claims will be recognized. We hope that this decisive approach will continue under the newly appointed Defence Minister.
14. China’s aggression not only offends Malaysia but has also been reported to affect other ASEAN member states. MCCM calls for this issue to be raised at the upcoming ASEAN leaders’ summit to demand that China respect the sovereignty of ASEAN countries and immediately cease its provocative activities.
15. In conclusion, Malaysia, as a maritime nation with over 80% of its landmass along coastlines in Peninsular Malaysia, Sabah, and Sarawak, requires continuous monitoring and enforcement of its territorial waters. The government, under the leadership of Prime Minister YAB Dato’ Seri Anwar Ibrahim, should take preemptive measures by increasing maritime enforcement capacity, including manpower and strategic asset acquisitions, to bolster Malaysia’s tactical capabilities in countering foreign threats and ensuring the integrity of its waters.
