Malaysia’s Hedging Strategy Towards China Under Mahathir Mohamad (2018–2020): Direct Engagement, Limited Balancing, and Limited Bandwagoning

To mitigate the risks and maximise the opportunities arising from China’s great power behaviour, Malaysia employed a hedging strategy during Mahathir Mohamad’s second term as prime minister. From 2018 until 2020, the middle power Malaysia applied direct engagement and elements of limited balancing and limited bandwagoning in a flexible yet consistent manner. Neither China’s Belt and Road Initiative (BRI) nor its actions in the South China Sea caused a sea change in Malaysia’s hedging strategy. Crucially, the policies towards China were embedded in omnidirectional, friendly, and well-balanced relations with the United States, Japan, and the Association of Southeast Asian Nations (ASEAN). Theoretically, this contribution applies an updated concept of hedging, initially introduced by Cheng-Chwee Kuik. As an important innovation, it adds a specific component to assess the perceptions of the political leader(s) of risks and opportunities related to the hedging target as well as the strategic value of potential balancing partners.