SOUTH CHINA SEA MUST REMAIN A 'SEA OF PEACE' FOR REGIONAL ECONOMIC GROWTH - HASBI

KUALA LUMPUR, Nov 17 (Bernama) -- The South China Sea must not be left vulnerable to disruption or hostile actions, as any escalation of conflict in the strategically vital waters would have far-reaching consequences for rapidly growing regional economies, including Malaysia.

Deputy Transport Minister Datuk Hasbi Habibollah said growing global economic pressures from trade volatility to tariff tensions are already impacting the region, particularly given the South China Sea’s role as a critical maritime artery for international commerce.

Hasbi underscored Malaysia’s commitment to ensuring the South China Sea remains a sea of peace and cooperation, not contention, given its importance to global maritime flows and the nation’s economic well-being.

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“As a maritime nation, Malaysia’s economy remains deeply connected to the sea. Nearly 40 per cent of the country’s Gross National Product (GDP) is derived from maritime activities, with over 98 per cent of trade by volume transported by sea. In 2024, Malaysia’s maritime trade throughput exceeded 778 million tonnes, placing its ports among the world's top 20 in container handling.

“Ensuring that the South China Sea remains a sea of peace, not contention, is essential to sustaining regional prosperity,” he said when officiating the Maritime Institute of Malaysia (MIMA) South China Sea Conference (SCS) 2025 here today.

Hasbi noted that the South China Sea remains a vital maritime corridor, carrying 21 per cent of global trade valued at USD3.37 trillion annually.

Apart from trade, he said it is also rich in marine and energy resources, including one of the world’s most productive fishing grounds, and with an estimated 190 trillion cubic feet of natural gas and 11 billion barrels of oil.

Referring to recent geopolitical developments, Hasbi said conflicts in Ukraine and the Middle East have demonstrated how instability on land can severely disrupt maritime supply chains. 

He cited attacks near the Bab el-Mandeb Strait, which caused an 80 per cent reduction in vessel calls and cargo volumes along the Red Sea in 2024, as well as sanctions in other conflict areas that have led to the expansion of the 'dark fleet,' raising risks to maritime safety and the environment.

“These developments remind us that instability anywhere can impact maritime security everywhere,” he said, stressing the importance of safeguarding the South China Sea against similar vulnerabilities.

Reaffirming Malaysia’s priority to protect coastal communities and preserve maritime livelihoods, he called for continuous dialogue, confidence-building measures and strict adherence to international law, especially the United Nations Convention on the Law of the Sea (UNCLOS 1982).

Meanwhile, MIMA chairman Datuk Suffian Awang said this year’s conference, themed 'Regional Unity and Strategic Resolve in the South China Sea, aligns with Malaysia’s ASEAN Chairmanship 2025, which prioritises inclusivity, stability and sustainable development. 

He said shifting regional dynamics, geopolitical competition, and humanitarian challenges continue to test Southeast Asia’s resilience, making constructive engagement essential. 

Suffian also highlighted the South China Sea’s importance as a major artery for global connectivity, hosting extensive subsea communication cables crucial for international digital infrastructure. 

-- BERNAMA