Leaked diplomatic note shows China warning M'sia to stop economic activities in Sarawak waters

The Malaysian government has confirmed the leak of a diplomatic note that was sent by China's Ministry of Foreign Affairs to the Malaysian Embassy in Beijing in February 2024.

The note, which was published in full on Aug. 29, 2024 by a Filipino news site, alleged that Malaysia's oil and gas activities in the waters off Sarawak infringed upon China's sovereignty and territorial claims.

Malaysia's Ministry of Foreign Affairs (Kementerian Luar Negeri, KLN) said it views the leak with "grave concern" and has filed a police report.

The note

The Philippine Daily Inquirer claimed that it received the diplomatic note from a Malaysian journalist, who requested anonymity.

It published a photo of the note in full. A translation reads as follows:

What shoals are these?

The shoals that China is referring to in the note are better known as the Luconia Shoals, or Gugusan Beting Raja Jarum in Malaysia.

They lie about 150km off the coast of Eastern Malaysia, and are located about 2,000km away from mainland China.

The shoals lie within Malaysia's 200-nautical mile Exclusive Economic Zone (EEZ), and have been so ever since Sarawak and Sabah joined the Federation of Malaysia in 1963.

There are extensive oil and gas natural resources in the waters around the shoals.

Earlier this year, Sarawak Premier Abang Johari Tun Openg said that including the Luconia Shoals, the state held 62 per cent of Malaysia's natural gas reserves, and 29 per cent of the total crude oil in Malaysia.

China's claims and Malaysia's response

However, despite the long-held territorial claim and commercial activities conducted by Malaysia in the Luconia Shoals, China asserted its claim over the shoals in 2015.

A China Coast Guard vessel anchored at the shoals, prompting a sharp response by the Malaysian government led by then-Prime Minister Najib Razak.

A minister said Najib would raise the matter directly with China's President Xi Jinping, Reuters reported.

After Najib's government was defeated by the Pakatan Harapan coalition in 2018, Mahathir Mohamad took power.

In September of that year, Sarawak gazetted the Luconia Shoals as a marine national park.

Mahathir said in November 2018 that the waters of the South China Sea should remain accessible to all ships, despite the various territorial claims in the area.

In 2020, under then-Prime Minister Muhyiddin Yassin, Malaysia submitted a note verbale to the United Nations, rejecting China's territorial claims under its "nine-dash line".

Hague tribunal ruling

China lays claim to the Luconia Shoals by virtue of its "nine-dash line", which encompasses most of the South China Sea.

This claim was challenged by the Philippines in 2016, and brought before an international tribunal in The Hague.

The tribunal's ruling backed the Philippines, and judged that rocky outcrops in the South China Sea claimed by China cannot be used as the basis of territorial claims.

China said it would not accept the ruling.

Anwar government's 'diplomatic' approach

Since Anwar became prime minister in 2022, he has taken a diplomatic, arguably more deferential approach, to relations with China.

In March 2023, Anwar visited China in a much-publicised trip. While there, Anwar discussed the South China Sea issue with Xi.

Upon his return, Anwar said he was prepared to "negotiate" with China over their territorial claims.

This appeared to be a departure from Malaysia's previous position, and Muhyiddin slammed Anwar for his comment, saying that this could have "far-reaching consequences" for Malaysia's own territorial claims.

We do not have a problem with China: Anwar

Despite the note being issued in February 2024, Anwar's government did not appear to make it public, or publicly challenge China's claims.

Just a few weeks later, in a trip to Australia, Anwar was asked about Malaysia's relations with China.

He said that if nations like the U.S., Australia and others in Europe have "problems" with China, they should not impose it on Malaysia.

"We do not have a problem with China," Anwar said, and added that Malaysia is "fiercely independent."

Police report

Following the leak of the note, and the confirmation by the Malaysian foreign ministry of its authenticity, the ministry is conducting an internal investigation.

It also filed a police report.

The ministry added:

"Malaysia and the People’s Republic of China share close and active bilateral relations. Both countries are Comprehensive Strategic Partners and continuously initiate new efforts that could further strengthen this partnership to even greater heights.

Regarding the South China Sea, both countries have expressed commitment and determination to resolve any issues peacefully through consultations and dialogue using existing platforms and diplomatic channels, without recourse to disputes or violence.

Malaysia’s stance on the South China Sea remains unchanged. Malaysia will continue to defend its sovereignty, sovereign rights, and interests in its maritime areas based on the 1979 Malaysia Map.

This approach aligns with the universally recognised principles of international law, including the United Nations Convention on the Law of the Sea (UNCLOS) 1982."

Top image via Canva, Anwar Ibrahim/Facebook, Xi’s Moments/Facebook