Malaysia to Boost Defence as Philippines Upgrades US Base Near Sabah

Malaysian Prime Minister Anwar Ibrahim has pledged to strengthen Malaysia's defence capabilities, citing concerns over a US-backed Philippine military base on Balabac Island in Palawan province, located just kilometres from Malaysia's eastern state of Sabah. The Philippines is upgrading strategic facilities and constructing a 3-kilometre runway on Balabac, one of nine Philippine sites under the Enhanced Defence Cooperation Agreement that permits American forces access to designated locations and allows for US funding of infrastructure. "As a neighbouring country closely affected by claims over Sabah, we are quite concerned about tensions, even though our bilateral relations with the Philippines remain very good," Anwar said during a budget briefing.

Anwar stated that Malaysia cannot compete with the scale of military and air facilities being developed on Balabac and must strengthen its own basic defensive capabilities given an increasingly complex security environment driven by US-China competition. This could require additional investment of hundreds of millions or billions of ringgit. "At minimum, our basic defensive capabilities must be strengthened," Anwar emphasised. He noted that Balabac's location, roughly 20 minutes by sea from Malaysia's Banggi Island, represents a critical vulnerability for Malaysia owing to a long-standing dispute over Sabah. The Philippines continues to claim the territory, which joined Malaysia in forming the Malaysian Federation in 1963—a claim Malaysia firmly rejects. Although the two nations have not engaged in full-scale war over the territory, the dispute has periodically strained bilateral relations.