Malaysia's expansion of its maritime jurisdiction and the World Oil Crisis, 1973–80

Abstract

In this article, I argue that Malaysia joined the South China Sea dispute during the 1970s as a reaction to the World Oil Crisis instead of asserting historical claims as in the cases of Vietnam and China. Malaysia expanded its maritime jurisdiction to include several highly disputed maritime features at the height of the oil crisis. The crisis was initiated by an oil embargo imposed by the Arab states, which imposed domestic inflationary pressures on Malaysia's economy. These two factors, external and domestic, resulted in Malaysia's bolstering of its offshore hydrocarbon exploration and exploitation culminating in the expansion of its maritime jurisdiction. In particular, Malaysia expanded its maritime jurisdiction in 1976 and 1979, which coincidentally corresponded with the aftermath of major oil price hikes that occurred in October 1975 and December 1978. Compared to China, Vietnam, and the Philippines, all of whom issued their maritime claims on the South China Sea based on historical or new discoveries, Malaysia's expansion was a mere reaction towards the oil crisis rather than a deliberate move.