IN the heart of Kuala Lumpur, Malaysia's bustling capital, the skyline is punctuated with symbols of progress. Among these symbols are the marks of Chinese investment, a testament to the deepening economic ties between Malaysia and the Asian giant. Yet, beneath the surface of these towering infrastructures lies a complex web of diplomacy, economic interests, and strategic manoeuvring.

For the Association of Southeast Asian Nations (ASEAN), China's rise as an economic powerhouse presents a double-edged sword. On one side, the promise of investments, trade, and economic growth. On the other, the looming shadow of economic coercion and the challenges of navigating Beijing's strategic ambitions.

China's Belt and Road Initiative (BRI) has poured billions into infrastructure projects across the region. From ports in Cambodia to railways in Laos, the promise of development is tangible. Yet, these investments often come with strings attached. The South China Sea disputes, dam projects on the Mekong River, and skirmishes with Vietnam and the Philippines underscore the delicate balance of power in the region.

Globally, China's economic strategies have raised eyebrows. The term "predatory liberalism" has been coined to describe Beijing's approach to international investments, where seemingly benign economic projects are used as leverage to further China's strategic and political interests. Countries from Africa to Latin America have found themselves ensnared in debt traps, leading to concerns about sovereignty and autonomy.

Economic coercion, another tool in China's arsenal, has been wielded with increasing frequency. By weaponizing trade and investment, Beijing has sought to punish countries that defy its geopolitical interests. From banning Australian beef in response to calls for a COVID-19 investigation to the economic bullying of the NBA over a single tweet, China's willingness to use its economic might as a coercive tool is evident.

Malaysia, with its strategic location and rich resources, has been a focal point of China's economic outreach. Projects funded by Chinese loans, such as ports and railways, dot the Malaysian landscape. However, these investments have not been without controversy. Concerns over debt sustainability and sovereignty have been raised, with some projects being renegotiated or shelved.

Yet, recent developments signal a nuanced approach by Malaysia. Prime Minister Datuk Seri Anwar Ibrahim's recent visit to Nanning, China, was marked by efforts to strengthen bilateral relations. The visit saw the exchange of three MOUs worth RM19.84 billion between Malaysian and Chinese companies.

Furthermore, China expressed support for Malaysia's New Industrial Master Plan (NIMP) 2030, indicating a willingness to engage in long-term strategic cooperation.

In an age where data is the new oil, cybersecurity has emerged as a pressing concern not just for corporations, but for nations. The digital realm has become the new frontier for geopolitical skirmishes, and China has been at the forefront of this cyber warfare.

Recent reports have highlighted China's aggressive cyber campaigns, targeting a diverse range of entities. From major corporations like Air India and Microsoft to critical infrastructure systems in various countries, the breadth and depth of these cyber-attacks are alarming. The attacks on Microsoft Exchange servers, for instance, exposed vulnerabilities that could potentially compromise thousands of organizations worldwide.

For ASEAN, and Malaysia in particular, these cyber threats are of significant concern. The region's growing digital economy, coupled with initiatives like Malaysia's Digital Free Trade Zone (DFTZ) and the ASEAN Smart Cities Network, makes it a prime target. The potential fallout from a major cyber-attack could be catastrophic, disrupting trade, compromising national security, and eroding public trust in digital initiatives.

Furthermore, the nature of these cyber-attacks is evolving. Beyond mere data theft, there is a growing trend of cyber espionage aimed at gathering intelligence and influencing policy decisions. The targeting of Taiwanese financial institutions and major Afghan telecom providers, as reported by IronNet, underscores China's intent to exert influence and gather intelligence in the region.

In response, there is an urgent need for ASEAN nations to bolster their cybersecurity measures. This includes investing in advanced threat detection systems, fostering regional cooperation for information sharing, and building a skilled workforce trained in cyber defence. Malaysia, with its aspirations to be a regional tech hub, can play a pivotal role by championing cybersecurity initiatives within ASEAN and setting best practices for others to follow.

While the allure of economic cooperation with China is undeniable, Malaysia and ASEAN must tread with caution. The economic benefits, though substantial, should not overshadow the potential pitfalls of becoming overly reliant on a single major power. As history has shown, economic dependencies can quickly morph into political and strategic vulnerabilities.

In the grand tapestry of ASEAN-China relations, the path forward is one of cautious optimism. Economic growth and development are essential, but so is the preservation of regional autonomy and sovereignty. As Malaysia and its ASEAN counterparts deepen their ties with China, they must remain vigilant, ensuring that today's economic boons do not become tomorrow's strategic burdens.


* Rahman Hussin interests is in public affairs, politics and stakeholder managements. He runs his own firm that serves a wide range of clients focusing on strategy and government affairs.

** The views and opinions expressed in this article are those of the author(s) and do not necessarily reflect the position of Astro AWANI.