Malaysia’s China policy in the post-Mahathir era : a neoclassical realist explanation

Malaysia’s China policy in the post-Cold War era – as an instance of a smaller state’s strategy toward a proximate and rising great power – has been characterized by three patterns. First, there was a shift from hostility and guarded rapprochement during the Cold War to cordiality and maturing partnership in the post-Cold War era. Second, despite the overall positive development, Malaysia’s China policy has remained, in essence, a hedging approach that is driven by both a pragmatic desire to maximize benefits from a closer relationship with the neighboring giant and a contingent calculation to guard against any long-term strategic risks in the uncertain regional environment. Third, such a two-pronged approach, which took shape since the 1990s under Mahathir Mohamad, has endured beyond the Mahathir era. Indeed, under his successors Abdullah Ahmad Badawi and Najib Tun Razak, Malaysia has continued to pursue a policy of dualism vis-à-vis China. What explains the enduring continuity of the hedging approach in Malaysia’s China policy? This paper adopts a neoclassical realist perspective, arguing that the continuity is attributed to both structural and domestic factors. Domestically, the changing bases of political legitimation in the multi-ethnic country, which highlight the increasing salience of economic performance and political inclusiveness as key sources of moral authority to the UMNO-led coalition government, have necessitated the succeeding leaders to continue pursuing a pragmatic policy aimed at ensuring a stable and productive relationship with China, not least to gain from the steadily growing bilateral trade and the giant’s growing outward investment. Structurally, Malaysia’s position as a smaller state has compelled it to be constantly vigilant about the uncertainty of state intentions and inter-great power relations, which in turn demands it adopts contingent measures to hedge against longer-term risks. It is such structural and domestic determinants that have fundamentally shaped the country’s policy towards China in general and the South China Sea issue in particular, which characteristically bears the mark of a delicate dualism, i.e. an explicit preference for engaging China through bilateral and multilateral diplomacy, but one that is backed by a low-key practice of maintaining and strengthening its traditional military links with its Western security partners. * An earlier version of the paper was presented at the 8th International Malaysian Studies Conference (MSC8), Bangi, 9 July 2012. I would like to thank Zakaria Haji Ahmad, Tang Siew Mun, Nor Azizan Idris, Chin Kok Fay, Ravichandran Moorthy, Heng Pek Koon, Lee Poh Ping, iii Stephen Leong, and Joseph Liow for their comments and suggestions to improve the paper. I gratefully acknowledge the financial support from the UKM Centre for Research and Innovation Management (CRIM)’s grant GGPM-2012-038, and the ISIS-UKM Project on Malaysia-China Relations. I also thank my research assistants Wong Chee Ming and Aini Raudhah Roslam for their help in data collection. All shortcomings are my own