Malaysia’s silent military buildup on Borneo
BY: DR ABDUL RAHMAN YAACOB
While recent international headlines have focused on Malaysia’s supposed alignment with China, even in the face of Chinese assertiveness in the South China Sea, the Southeast Asian state has quietly adopted a different strategy on the ground. Beneath the radar, Malaysia is quietly strengthening its military presence in the Malaysian Borneo states of Sabah and Sarawak.
In recent years, Chinese vessels have regularly entered Malaysia’s Exclusive Economic Zone (EEZ), especially near the Luconia Shoals, which lie just off Sarawak’s coast. This has placed Malaysia in a difficult position, given its economic dependence on China. China has been Malaysia’s largest trading partner since 2009, and in 2024, bilateral trade stood at a record high of more than $212 billion.
Understanding that open confrontation could be economically costly, Malaysia’s government rarely makes public pronouncements about its territorial disputes with China. Instead, the country is pursuing what some analysts call strategic hedging: avoiding provocation, while quietly preparing for the worst.
Over the past few years, Malaysia has undertaken a military buildup in Sabah and Sarawak, reflecting Putrajaya’s growing recognition that quiet diplomacy alone is insufficient. As China’s maritime reach expands and its tactics become more aggressive, Malaysia understands that it should not be caught unprepared. Putrajaya has massive economic interests in the South China Sea, where revenue from oil and gas resources forms more than a fifth of total public revenue.
The strategy of a quiet military build-up in East Malaysia is calculated. The region offers geographical depth and proximity to the contested South China Sea, making it ideal for projecting power while maintaining a defensive posture.
The Royal Malaysian Air Force has enhanced air surveillance capabilities in East Malaysia. In 2023, Malaysia began deploying US-supplied AN/TP77 and French GM400A radars. These long-range radars enable Malaysia to monitor the airspace over its EEZ in the South China Sea.
Furthermore, these long-range radars are crucial in enabling Malaysia to detect any aerial threats from the South China Sea. In 2021, 16 Chinese military aircraft entered the airspace over the disputed maritime areas off Sarawak in tactical formation, prompting the Malaysians to scramble their jet fighters to engage the Chinese aircraft.
New defense infrastructures are also being built. The Royal Malaysian Navy has expanded its footprint in the east with a new naval command in Sarawak, with an additional facility capable of supporting submarine operations. This facility will double the number of facilities capable of supporting Malaysia’s submarine operations in Borneo. Additionally, a new bare base facility in Sarawak for the air force has been approved, and construction works will begin this year.
New military units, critical to supporting Malaysia’s maritime interests, have been established and based in Sabah and Sarawak. The Malaysian navy’s Squadron 503, operating U.S.-supplied ScanEagle unmanned surveillance and reconnaissance aerial vehicles, is based in Sabah. Meanwhile, Sarawak hosts the new air force’s No. 3 Squadron, which operates AW 139 helicopters that can provide logistical and airlift support for the Malaysian military presence in five atolls in the South China Sea.
Beyond equipment and infrastructure, the Malaysians have conducted joint exercises to enhance their capabilities in protecting maritime interests. In 2024, a sea and air combined exercise was held with France off the coast of Sabah, involving Malaysian combat aircraft and a French frigate. Japan has been assisting Malaysia in building the capabilities of the Malaysian Coast Guard through joint exercises on repelling foreign intruders in the South China Sea, as well as training Malaysian Coast Guard personnel in gathering forensic evidence.
In 2023, the Malaysian air force and navy conducted the largest combined exercise, EX ANGSA, in the waters off Sabah and Sarawak. The exercise involved more than 2,500 personnel along with 20 navy vessels and submarines backed by combat aircraft, and was aimed at testing the ability of the air force and navy to respond to maritime conflict jointly.
Malaysia’s strategy may not garner headlines, but it deserves attention. It illustrates how smaller powers can resist pressure from a great power without openly defying it. In an increasingly tense maritime region, Malaysia’s actions provide a possible template for calm yet firm resistance – one that defends sovereignty without jeopardising regional stability.
Dr. Abdul Rahman Yaacob is a Research Fellow in the Southeast Asia Program at Lowy Institute. Concurrently, he is a Non-Resident Fellow at the Korea Institute for Maritime Strategy (KIMS).
This article was first published in The Diplomat