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South China Sea Disruptions Could Impact Malaysia’s Economy, Says Deputy Transport Minister

Kuala Lumpur:Disruptions and legal ambiguities in the South China Sea could potentially threaten Malaysia's economic stability, supply chains, and regional food security, stated Deputy Transport Minister Datuk Hasbi Habibollah.

According to BERNAMA News Agency, Hasbi emphasized during the 9th Maritime Institute of Malaysia (MIMA) South China Sea Conference 2026 that freedom of navigation and lawful commerce in these waters are crucial to Malaysia's interests. He underscored the importance of the South China Sea as a crucial link for domestic trade, offshore energy, and global value chains.

Hasbi highlighted Malaysia's heavy reliance on maritime trade, noting that over 96.4% of the country's international trade is seaborne. In 2025, Malaysian ports processed 33.07 million twenty-foot equivalent units (TEUs), with Port Klang becoming the world's 10th-busiest container port, handling 15.14 million TEUs. The Port of Tanjung Pelepas also marked a milestone by handling over 14 million TEUs.

He warned that disruptions in the South China Sea could immediately impact Malaysia's economic stability and supply chains. Drawing parallels with conflicts in other regions, Hasbi pointed out how geopolitical tensions could escalate costs and disrupt maritime trade. Additionally, he warned against the risks posed by deceptive shipping practices by so-called dark fleet or shadow fleet vessels.

To counter such threats, Hasbi mentioned that the Ministry of Transport, alongside the Marine Department Malaysia and the Malaysian Maritime Enforcement Agency (MMEA), has intensified efforts to detect and deter illicit shipping activities using advanced screening and intelligence operations.

He concluded by reiterating Malaysia's stance on resolving South China Sea disputes peacefully through dialogue and international law adherence, including the 1982 United Nations Convention on the Law of the Sea (UNCLOS). The conference, themed 'South China Sea 2026 Rules, Resilience, and Regional Order', gathered diverse stakeholders to discuss maritime challenges and cooperation.

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