Explaining Hedging The Case of Malaysian Equidistance

• Published in: Contemporary Southeast Asia Vol. 46; no. 1; pp. 43 - 76
• Main Author: Kuik, Cheng-Chwee
• Format: Journal Article
• Language: English
• Published: ISEAS - Yusof Ishak Institute 01-04-2024; ISEAS–Yusof Ishak Institute; Institute of Southeast Asian Studies (ISEAS)
• Subjects: Australia; China; Chinese foreign relations; Communism; Indonesia; Mahathir bin Mohamad; Malaysia; Philippines; Singapore; South China Sea; Thailand; United Kingdom; South China Sea; Singapore; Philippines; China; United Kingdom; Malaysia; Thailand; Australia; Indonesia
• ISSN: 0129-797X; 1793-284X
• DOI: 10.1355/cs46-1c

For decades, Malaysia has positioned itself as being "equidistant" between the United States and China. But being equidistant does not mean being equally distant or equally close. Instead, it means maintaining a neutral position at the macro level while seeking inclusive but selective multilayered partnerships with all competing powers across micro-level domains. While the Malaysia-US defence partnership is much closer than that between Malaysia and China, Malaysia-China diplomatic and developmental ties are more multifaceted than those between Malaysia and the United States. Therefore, Malaysia's equidistant stance entails several puzzling contradictions emblematic of hedging. This article theorizes hedging by unpacking the two-level determinants of Malaysia's inclusive but prudently selective and contradictory policy of equidistance. It argues that while the smaller state's macro-level neutrality is driven primarily by the structural imperative of insuring against the danger of entrapment and other systemic risks, the inclusive and contradictory elements in Malaysia's micro-level, multilayered alignments are primarily due to domestic reasons. Chief among these is the governing elites' necessity to optimize the different pathways of legitimation in a multiethnic society. This intersects with other domestic processes, prompting the state to hedge by pursuing seemingly paradoxical approaches to offset risks while maximizing benefits with politically acceptable trade-offs under conditions of uncertainties.