Deputy minister notes that 98% of national trade moves by water as rising global tensions disrupt supply chains
KUALA LUMPUR: Malaysia’s maritime-dependent economy underscores the urgent need to safeguard peace and stability in the South China Sea, said Deputy Transport Minister Datuk Hasbi Habibollah.
According to Hasbi, about 40% of Malaysia’s gross national product comes from maritime activities, with more than 98% of its trade by volume transported by sea.
He said Malaysia’s maritime trade throughput surpassed 778 million tonnes in 2024, placing the nation’s ports among the world’s top 20 in container handling.
“Ensuring that the South China Sea remains a sea of peace, not contention, is essential to sustaining regional prosperity,” he said.
He delivered his keynote address at the 8th MIMA South China Sea Conference 2025 themed “Regional Unity and Strategic Resolve in the South China Sea”.
Touching on global geopolitical tensions, Hasbi said conflicts in Ukraine and the Middle East have disrupted maritime supply chains.
For instance, attacks near the Bab el-Mandeb Strait caused an 80% drop in vessel calls and cargo volumes along the Red Sea in 2024, while sanctions in other conflict zones contributed to the rise of the “dark fleet” that threatens maritime safety and the environment.
“These developments remind us that instability anywhere can affect maritime security everywhere,” he said, stressing the need to shield the South China Sea from similar risks.
He also emphasised Malaysia’s long-standing commitment to diplomacy and cooperative engagement in maritime affairs.
Hasbi said Malaysia will keep strengthening strategic partnerships and supporting initiatives that promote regional stability, safety and economic growth.
“Our future is tied to the sea. Protecting it is a collective responsibility that requires unity and resolve.”
Meanwhile, China’s ambassador to Malaysia Ouyang Yujing said the South China Sea remains one of the world’s most critical maritime corridors, with over 500,000 merchant vessels and more than a million civilian aircraft passing through each year.
He said the region has recently faced “abnormal interference” from hyped disputes and manufactured conflicts that threaten stability.
“Unlike places that often use long-term legal tactics to take advantage of territorial claims in the South China Sea, countries in the region have chosen to work together.
“They’ve upgraded the China–Asean Free Trade Area to version 3.0 and are carrying out the Regional Comprehensive Economic Partnership effectively, helping drive growth and prosperity across the region.”
“China and Asean countries have also carried out fruitful cooperation in areas such as maritime law enforcement, marine scientific research and maritime protection, disaster prevention and mitigation. Looking ahead, building a community with a shared future in the South China Sea will create greater prosperity for the region,” he said.
Yujing noted that China and Asean mark the fifth anniversary of the China–Asean Comprehensive Strategic Partnership this year.
“For more than five and a half years, both sides have remained each other’s largest trading partners. Cooperation in the digital economy, infrastructure, agriculture and fisheries is expanding rapidly and continues to offer vast potential for growth.”
He added that survey findings cited by the ambassador show that over 80% of Southeast Asian respondents believe their countries enjoy positive ties with China, while more than 60% support deeper cooperation in maritime-related fields.
“The peoples of the region aspire to peace, stability, cooperation and friendship,” Ouyang said.
He warned that negative narratives and biased rhetoric risk undermining these shared aspirations, cautioning that certain external forces are “deliberately sowing discord between China and regional countries,” encouraging risky actions in the South China Sea that threaten stability and the interests of all.
