Deputy Transport Minister warns South China Sea tensions could destabilise Malaysia's economy

At the Maritime Institute of Malaysia's 2026 South China Sea Conference, Deputy Transport Minister Datuk Hasbi Habibollah warned that unsafe encounters and legal uncertainties in the South China Sea could jeopardise Malaysia's economic stability, national supply chains and regional food security. He stressed that the sea connects Peninsular Malaysia with Sabah and Sarawak, underpinning domestic commerce, offshore energy production and integration into global value chains.

Hasbi cited that the vast majority of Malaysia's international trade is maritime, with 2025 port activity reaching 33.07 million TEUs; Port Klang recorded 15.14 million TEUs, ranking it among the world’s busiest, while Tanjung Pelepas handled 14.03 million TEUs. He warned that disruptions would instantly threaten the economy and food security, referencing how tensions in the Black Sea, Red Sea and Strait of Hormuz have raised freight costs and forced rerouting.

The minister also highlighted risks from shadow fleet vessels engaging in illegal practices and announced intensified vessel screening using advanced traffic services and IMO verification to prevent non-compliant shipping. He called for peaceful resolution of disputes through dialogue and adherence to UNCLOS.