Malaysian PM Rejects China’s Demands to Halt Oil Exploration in South China Sea

Malaysian Prime Minister Anwar Ibrahim leaves the lower house of parliament after receiving a vote of confidence in Kuala Lumpur on Dec. 19, 2022. HASNOOR HUSSAIN/POOL/AFP via Getty Images

Malaysian Prime Minister Anwar Ibrahim has pushed back against Beijing, saying his country will continue its oil and gas exploration projects in the South China Sea.

His remarks followed a leaked diplomatic note issued by the Chinese Foreign Ministry to the Chinese Embassy in Malaysia expressing Beijing’s claim that the projects “infringed” on Chinese territory, which was published by a Philippine media outlet on Aug. 29.

Beijing had demanded that Malaysia immediately stop its oil and gas exploration in waters near Luconia Shoals, which is located about 62 miles from Malaysia’s Sarawak state and 1,200 miles from China’s Hainan Island.

Under the UNCLOS, to which China is a signatory, countries have jurisdiction over natural resources within 200 nautical miles (230 miles) of their coastlines.

Both Malaysia and China claim sovereignty over the shoal. Malaysia refers to it as “Gugusan Beting Raja Jarum,” while Beijing calls it “Nankang Ansha” and “Beikang Ansha.”

Anwar told reporters in Russia during an official visit on Sept. 5 that his country will not yield to China’s demands as the oil and gas exploration projects are within Malaysia’s territory.

He said the exploration projects were never intended to be intentionally provocative or unnecessarily hostile towards China, with which Malaysia maintains a good relationship.

“China is a great friend, but of course we have to operate in our waters and secure economic advantage, including drilling for oil in our territory,” Anwar said in a televised press conference.

Anwar said his government will stand firm in its stance while remaining open to dialogue with Beijing. He said this was not the first time that Malaysia had received a protest note from China.

“They know our position ... They have claimed that we are infringing on their territory. That is not the case. We say no, it is our territory,” he said. “But if they continue with the dispute, then okay, we will have to listen and they will have to listen.”

The Chinese Foreign Ministry has not yet issued any statement in response to Anwar’s remarks.

The Malaysian Foreign Ministry has launched an internal investigation into the leak of Beijing’s diplomatic note, calling it a “breach of classified information.”

The ministry said in a Sept. 4 statement that Malaysia’s position on the South China Sea remains unchanged and that it will continue to defend its sovereign rights and interests in its maritime areas.

Buildings and structures are seen on the artificial island built by China in Mischief Reef, Spratly Islands, in the South China Sea, on Oct. 25, 2022. Ezra Acayan/Getty Images

Beijing has asserted territorial claims over nearly the entire South China Sea, including reefs and islands that overlap with the exclusive economic zones of Vietnam, Malaysia, Brunei, Taiwan, and the Philippines.

An international tribunal in The Hague ruled in favor of the Philippines following legal action taken by the country in 2016, invalidating much of China’s claims in the region. But China’s ruling Chinese Communist Party (CCP) has refused to recognize the ruling and continued to exercise its claims.

Last year, China’s Ministry of Natural Resources published a new “standard” national map featuring a “10-dash line” instead of the earlier nine-dash line used to stake claims in the sea.

The revised map showcases China’s extensive claims in the South China Sea, with an additional dash to the east of self-ruled Taiwan. It also includes China’s land claims to the Indian state of Arunachal Pradesh and the Aksai Chin in the Himalayan border. India, Malaysia, Brunei, Nepal, Taiwan, Vietnam, the Philippines, and Indonesia have rejected the new map.

The Associated Press contributed to this report.