Chinese Navy vessels to the port of Penang in a gesture of regional diplomacy, maritime tensions have escalated with the deployment of a Royal Malaysian Navy (RMN) vessel to shadow a Chinese Coast Guard (CCG) vessel reportedly conducting an “intrusive patrol” within Malaysia’s Exclusive Economic Zone (EEZ). This incident is the latest in a series of confrontations between Malaysia and China over contested maritime territories and resources in the South China Sea.
According to South China Sea observer Ray Powell, who shared the update on platform X (formerly Twitter), the RMN’s Kedah-class offshore patrol vessel KD Selangor was tasked with monitoring the Chinese Coast Guard vessel CCG 5102, which had been detected patrolling just 70 nautical miles off the coast of Sarawak, well within Malaysia’s EEZ.
Powell, who is also the Director at SeaLight.Live and co-host of the Indo-Pacific Podcast, emphasized the significance of this incident.
“KD Selangor has arrived to shadow China’s Coast Guard vessel 5102 – the latest in a series of Chinese vessels conducting intrusive patrols within Malaysia’s Exclusive Economic Zone, just 70 nautical miles from the Sarawak coast.”
This provocative action underscores China’s growing maritime assertiveness in the South China Sea, a region known for its rich resources, including oil and gas reserves, and its strategic significance as a major shipping lane. Despite the ongoing diplomatic engagements between China and Malaysia, these incidents highlight the persistent challenges both countries face in balancing cooperation with competing territorial claims.
The CCG 5102 is no stranger to Malaysia’s EEZ. Just last month, Powell had reported the presence of CCG 5102 along with two other Chinese coast guard vessels, CCG 5403 and CCG 5402, in the vicinity of Malaysia’s oil and gas installations. These vessels were observed near the Kasawari gas development field, an offshore project spearheaded by Malaysia’s national oil and gas company, Petronas. The gas field is located within Block 316, an area that is unequivocally within Malaysia’s EEZ under the United Nations Convention on the Law of the Sea (UNCLOS).
Vessel tracking data from multiple sources confirmed the proximity of these Chinese ships to the Kasawari gas field, raising concerns about the potential disruption of Malaysia’s economic activities in the region. The Kasawari gas project, one of Petronas’ flagship ventures, is of immense strategic importance to Malaysia’s energy sector and overall economy. Developed by Petronas Carigali, a subsidiary of Petronas, the project is valued in the billions of ringgit and is expected to significantly boost Malaysia’s energy production capabilities.
These patrols by the Chinese Coast Guard have been interpreted by many observers as part of a broader strategy by China to exert its claims over nearly the entire South China Sea, a stance based on its controversial “nine-dash line” map, which overlaps with the EEZs of several Southeast Asian nations, including Malaysia, the Philippines, Vietnam, and Brunei.
While tensions simmered offshore, China’s naval presence in Malaysia was evident through recent diplomatic activities. Last week, two vessels from the People’s Liberation Army Navy (PLAN) Task Group 83 — the Qi Jiguang, a training ship, and the Jinggang Shan, an amphibious transport dock — made a port call in Penang, one of Malaysia’s busiest ports. The visit was widely seen as a goodwill gesture aimed at fostering naval ties between the two countries.
The delegation was warmly received by Penang State Legislative Assembly Speaker Law Choo Kiang, and Chinese naval officers and cadets engaged in cultural exchanges, including visits to local institutions such as Chung Ling High School. These activities were part of China’s ongoing efforts to strengthen bilateral relations with Malaysia in areas beyond the South China Sea dispute, including trade, investment, and education.
However, these diplomatic exchanges were overshadowed by the ongoing maritime standoff in the South China Sea. Despite the cordial visits, Malaysia’s maritime security apparatus was on high alert, reflecting the fragile nature of Malaysia-China relations in the face of overlapping territorial claims.
Malaysia has consistently rejected China’s expansive claims in the South China Sea, maintaining that its oil and gas activities are conducted well within its EEZ. Prime Minister Datuk Seri Anwar Ibrahim has taken a firm stance on the issue, underscoring the importance of continuing Malaysia’s resource exploration and exploitation in the disputed waters despite Beijing’s objections.
During a recent visit to Vladivostok, Russia, Anwar reaffirmed Malaysia’s commitment to its economic activities in the South China Sea.
“China is our partner, but we must operate within our waters to secure economic benefits, including offshore drilling within our territorial zone.”
He added that while Malaysia seeks to maintain good relations with China, it cannot afford to halt vital oil and gas exploration projects that are essential for the country’s economic survival.
“Although Beijing has lodged protests, believing the area belongs to them, we must proceed with these activities for the survival of our economy,” Anwar said, speaking to Malaysian journalists during the briefing.
These comments highlight Malaysia’s delicate balancing act — maintaining cordial relations with China, a key trade partner, while safeguarding its sovereign rights and economic interests in the South China Sea.
China has long objected to Malaysia’s oil and gas activities in waters it claims as its own under the “nine-dash line” — a demarcation that has been rejected by the Permanent Court of Arbitration in The Hague, which ruled in 2016 that China has no legal basis to claim historic rights over most of the South China Sea. Despite this ruling, China has continued to assert its claims through a combination of diplomatic protests, coast guard patrols, and naval exercises.
Earlier this year, China issued a diplomatic note to Malaysia, demanding that it cease all oil and gas exploration in the disputed waters off the coast of Sarawak. However, Malaysia has steadfastly refused to comply with these demands, asserting that its activities are conducted within its internationally recognized EEZ.
The presence of Chinese vessels near the Kasawari gas field is widely seen as a form of pressure on Malaysia to halt its activities. Analysts believe that these patrols are part of a broader strategy by China to challenge Malaysia’s sovereignty in the South China Sea by creating a sense of constant surveillance and threat in areas that are crucial to the country’s economic interests.
The South China Sea is one of the most geopolitically significant regions in the world, serving as a vital trade route through which nearly a third of global maritime traffic passes. It is also believed to contain vast reserves of untapped oil and natural gas, making it a highly contested area among several nations, including China, Malaysia, the Philippines, Vietnam, and Brunei.
For Malaysia, the South China Sea is a critical source of revenue, particularly through its oil and gas sector. Petronas, the country’s state-owned energy giant, has invested heavily in offshore projects like the Kasawari gas field to ensure Malaysia’s long-term energy security and economic growth.
However, China’s aggressive posture in the region poses a significant challenge to Malaysia’s ambitions. By deploying coast guard and naval vessels to patrol contested waters, China is not only asserting its territorial claims but also attempting to control the narrative around resource extraction in the South China Sea.
The deployment of the KD Selangor to shadow the CCG 5102 is a stark reminder of the high-stakes nature of the South China Sea dispute. As Malaysia continues to assert its rights to explore and develop resources within its EEZ, it must also navigate the complex geopolitical landscape shaped by China’s rising assertiveness.
While diplomatic gestures, such as the recent port call in Penang, signal a willingness to maintain amicable relations, the ongoing maritime confrontations indicate that tensions in the South China Sea are far from being resolved. For Malaysia, the challenge lies in balancing its economic interests and sovereignty with the need to maintain a stable and cooperative relationship with its powerful neighbor to the north.
