The end of passive non-alignment? Why Malaysia’s foreign policy must become ‘active’

LocalPolitics
27 Apr 2026 • 11:03 AM MYT
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Malaysia must move beyond passive neutrality following US-Indonesia deal, especially on maritime defence: Analyst

KUALA LUMPUR: Malaysia must move beyond passive neutrality and adopt a more deliberate, strategic posture as regional security dynamics grow increasingly fluid following the latest United States–Indonesia defence partnership, said an analyst.

The agreement underscores a shifting security landscape in Southeast Asia but should not be interpreted as Jakarta aligning fully with Washington, said International Islamic University Malaysia international relations expert Assoc Prof Dr Mohd Yazid  Zul Kepli.

“Malaysia should read the US–Indonesia defence partnership as a sign that regional security is becoming more fluid, not as proof that Indonesia has fully chosen the US side.

“Indonesia is deepening defence ties with Washington but it remains cautious about anything that could be seen as a loss of strategic autonomy.”  

Mohd Yazid said the development carries a crucial lesson for Malaysia, which has long upheld a non-aligned foreign policy.

“For Malaysia, the main lesson is that balance now requires active strategy, not just neutrality.

“Malaysia should maintain workable ties with both the US and China, while continuing to defend Asean-led frameworks as the main platform for regional order,” he said.

He added that the issue extends beyond great power rivalry, pointing instead to Indonesia’s growing influence in shaping regional security dynamics.

“An important point many people miss is that this is not only about US-China rivalry. It is also about Indonesia becoming even more important in shaping Southeast Asia’s security agenda.

“Malaysia should therefore avoid being overly passive, especially on maritime security, the Strait of Malacca and the South China Sea,” he said.

His remarks come amid debate triggered by a proposal from Indonesia’s finance minister to impose fees on vessels transiting the Strait of Malacca, raising questions over control of one of the world’s busiest shipping lanes.

Malaysia has since reaffirmed that any decision concerning the strategic waterway must be made collectively by littoral states, firmly rejecting unilateral or external control.

Foreign Minister Datuk Seri Mohamad Hasan warned that any move to introduce transit fees could disrupt global trade flows and strain international relations.

“As an Asean member and given that the Strait of Malacca is shared by several countries, any decision must be handled collectively to avoid undermining bilateral or multilateral ties,” he said.

The Indonesian minister later  back-pedalled on the suggestion, clarifying that any such move would require the agreement of Malaysia and Singapore.

Mohd Yazid stressed that Malaysia should respond with measured caution rather than overreacting.

“Malaysia should not overreact, but should quietly strengthen its own capabilities, preserve diplomatic flexibility and ensure Asean remains relevant,” he said.

On the broader regional outlook, he said increased US military engagement could place pressure on Malaysia’s traditional neutral stance, but would not necessarily force a policy shift.

“Yes, increased US military engagement in Southeast Asia can put pressure on Malaysia’s traditional non-aligned posture, but it does not force Malaysia to abandon it.

“The bigger challenge is that neutrality now has to be more active and strategic,” he said.

Mohd Yazid said Malaysia must continue engaging with the US where beneficial, while avoiding perceptions of aligning against China and maintaining reliance on Asean-led mechanisms.

“The real issue is not whether Malaysia can stay non-aligned, but whether it can do so without becoming strategically passive,” he added.

On maritime security, he said Asean continues to shape diplomatic norms, even as external powers exert stronger influence operationally.

He added that deeper US-Indonesia cooperation could have wider implications beyond the South China Sea, extending into surrounding maritime and airspace domains.

“Malaysia should read growing US-Indonesia defence cooperation as affecting not only the broader South China Sea but also the wider maritime and air-access environment around the Strait of Malacca.

“The most significant long-term effect may not be more ships in disputed waters but the quiet normalisation of operational patterns and access networks around Indonesia, which could shift the regional balance without dramatic public announcements.”

For Malaysia, this means paying closer attention not just to naval developments, but also to evolving patterns in access, logistics and airspace use across Southeast Asia, he added.