Riding the tide: Malaysia-China collaboration in the blue economy

THE oceans have long shaped Malaysia’s fortunes, from the historical spice trade in Melaka to contemporary global shipping through the Straits of Melaka.

With the growing prominence of the blue economy, which encompasses marine renewable energy, port infrastructure, marine research, aquaculture and coastal tourism, Malaysia is reimagining its maritime role, with China emerging as a key partner in this development.

Together, the two countries are exploring a complex but promising partnership.

Port development provides a clear example of Malaysia-China cooperation. The Kuantan Port on the peninsula's east coast has undergone significant transformation through a joint venture between IJM Corporation and China’s Guangxi Beibu Gulf International Port Group.

The development of the New Deep-Water Terminal has expanded the port’s capacity to accommodate larger vessels, while the 2014 sister-port agreement with Qinzhou Port in China strengthened bilateral logistics and trade connectivity.

This infrastructure streamlines Customs operations and integrates supply chains, reducing delivery times and connecting Malaysian manufacturers to China’s industrial base. Small-scale suppliers in the East Coast Economic Region have gained faster market access, while Chinese traders benefit from a reliable logistics node.

Beyond ports, fisheries and aquaculture demonstrate how competition at sea can become cooperation on shore.

Chinese firms are investing in large-scale aquaculture ventures in Sabah, rearing high-value species such as groupers and shrimps, with technology and financing from China. These products reach Malaysian markets and, often within days, Chinese supermarkets.

In coastal areas like Tawau and Sandakan, farms use water-quality sensors and tank systems to ensure export-grade production. For local communities, aquaculture provides more stable incomes than traditional fishing while enabling technology transfer and skills development.

With proper safeguards, sustainable practices such as mangrove-friendly farming and joint Malaysia-China water-quality monitoring allow aquaculture to coexist with ecosystems, creating employment, access to premium export markets and a reliable seafood supply chain for China.

Collaboration extends into renewable energy, an area where Malaysia sees both environmental necessity and economic potential.

With long coastlines and island territories, the country has untapped opportunities in offshore wind, tidal and wave power.

China, which leads the world in renewable energy technology, has begun sharing expertise through studies on offshore wind and tidal energy along Malaysia’s coasts.

While still in the feasibility stage, these studies are significant because they could help Malaysia diversify away from fossil fuels while allowing China to demonstrate its clean-energy capabilities across Asean.

If pilot projects such as small-scale wind installations along Peninsular Malaysia’s east coast or tidal tests near island clusters succeed, they could introduce a new dimension to bilateral cooperation by connecting climate commitments with tangible investments.

Joint R&D efforts, though subtle, play a powerful role. Malaysian universities, particularly Universiti Malaysia Terengganu, have developed partnerships with their Chinese counterparts to study coral reefs and fisheries as well as the effects of climate change in the South China Sea.

These collaborative programmes focus on assessing reef resilience, monitoring fish stocks and testing conservation techniques using molecular and remote-sensing methods.

Such partnerships lay the groundwork for more extensive maritime research such as joint expeditions or surveys in shared waters. For researchers, these collaborations provide data critical to understanding ecosystem changes, while for policymakers, they demonstrate the potential for science diplomacy in contested maritime zones.

Such scientific diplomacy helps build trust in areas that might otherwise be dominated by naval patrols and political disputes.

Tourism provides another window into blue economy cooperation. Before the pandemic, Chinese visitors were among Malaysia’s largest tourist groups, flocking to destinations such as Langkawi, Sabah and Terengganu.

Their presence boosted hotels, restaurants and airlines. Eco-tourism initiatives along the coast flourished.

In Terengganu, turtle conservation programmes provide visitors the opportunity to participate in hatchling releases, combining environmental education with coastal tourism.

In Selangor, mangrove tours guided by local communities have been supported by international partners, which include Chinese organisations, giving conservation a people-to-people dimension.

These initiatives illustrate that the blue economy extends beyond large-scale infrastructure, providing local communities with opportunities for sustainable livelihoods while simultaneously contributing to ecosystem conservation.

Beyond Malaysia, these initiatives also extend to the larger Asean-China framework. The Asean-China Blue Economy Partnership has become a platform for regional coordination, focusing on shared issues such as fisheries management, marine conservation and sustainable shipping.

One of the most ambitious proposals is the establishment of "green shipping" corridors in the Straits of Melaka, one of the busiest maritime lanes in the world.

Ships using these corridors would adopt cleaner fuels and stricter standards, reducing emissions along the route that carries roughly a quarter of global traded goods.

If implemented, this initiative could make a global environmental impact while also cementing Asean-China cooperation.

Even amid complex regional dynamics, opportunities abound. Digital tools such as satellite tracking, artificial intelligence and big data are increasingly being used to monitor fishing and shipping activities.

Financial mechanisms, including the China-Asean Maritime Cooperation Fund, have supported sustainable maritime projects since 2011.

Training programmes for the Coast Guard and marine science exchanges also strengthen people-to-people ties.

These intangible forms of cooperation may be as influential as major infrastructures and aquaculture projects in fostering long-term trust, advancing environmental sustainability and promoting resilient green industries between both countries.

In short, Malaysia-China cooperation in the blue economy is ultimately a story of balance between growth and sustainability, investment and sovereignty as well as regional integration and local empowerment.

Port projects, aquaculture farms and scientific expeditions demonstrate how shared seas can foster cooperation. Malaysia must extract value from partnerships without overreliance, while China must ensure its engagement promotes mutual prosperity.

Managed well, the blue economy can create a new paradigm of regional cooperation, turning contested waters into drivers of shared economic and ecological prosperity.

Mismanagement, however, could undermine these gains.

For now, Malaysia and China are moving forward together, riding a blue wave that could carry the region towards a more sustainable and interconnected maritime future.

Dr Andrew Kam Jia Yi is a Professor at Universiti Kebangsaan Malaysia. The views expressed here are entirely the writer’s own.

The SEARCH Scholar Series is a social responsibility programme jointly organised by the South-East Asia Research Centre for Humanities (SEARCH) and Tunku Abdul Rahman University of Management and Technology (TAR UMT).