DEFENCE WHITE PAPER 11. China continues to implement its Belt and Road Initiative (BRI), which aims at reviving the Silk Road by constructing a vast network of infrastructure, transportation and trade links across Asia, Europe and Africa. The country’s economic and diplomatic activism has been pursued side-by-side with its military modernisation, institutional initiatives (e.g. the Asian Infrastructure Investment Bank [AIIB], the Mekong-Lancang Cooperation [MLC], Xiangshan Forum) and perceived aggressive actions over the South China Sea. Regional countries have reacted differently to these developments. Some are amenable to China’s emerging role in regional architecture and global order, whilst others are uneasy about it. 12. Parallel to these developments is the revival of the Quadrilateral Security Dialogue (the Quad) by Australia, India, Japan and the US in 2017. By 2018, each of the Quad countries had announced its own version of the “Indo-Pacific” strategies respectively, expressing its security roles and connectivity cooperation scheme. The Quad countries emphasise the importance of rules-based order, underscoring the freedom of navigation and openness of sea lanes, while promoting sustainable infrastructure development practices. 13. Amidst growing power competition between the contending interests, infrastructure connectivity cooperation joins maritime security as chessboards of Asian geopolitics. 14. On the maritime front, the US has stepped up its FONOPs in various parts of the disputed waters of the South China Sea. Australia, France, Germany, Japan and the United Kingdom have registered their respective concerns over the issue, whether through their own initiatives or through joint statements. India and other countries have similarly called for safeguarding the freedom of navigation. 15. On the connectivity front, Japan has been active in implementing the Partnership for Quality Infrastructure since 2015. This initiative started concurrently with the establishment of the China-backed AIIB. It was followed by the announcements of bilateral, trilateral and coalition partnerships between and among the Quad members on connectivity cooperation. The US released its Indo-Pacific Economic Vision in July 2018 while the European Commission presented the EU-Asia Connectivity Strategy in September 2018. 16. All these developments have both direct and indirect impacts on East Asia, including Southeast Asia, presenting opportunities as well as challenges. East Asia is the region where most of Malaysia’s national interests are concentrated. Within the region, the outlook is mixed. Economically, East Asia remains the most vibrant and integrated region. Security wise, however, it is a region with multiple potential flashpoints. While there have been some attempts at resumptions of diplomacy in East Asia between the two Koreas, between the US and North Korea, between China and Japan, the security of the region remains uncertain. The situation in the Korean Peninsula is still tense. The Taiwan Strait is still considered a potential conflict zone. Elsewhere, in Southeast Asia and other parts of the region, territorial disputes and overlapping claims between and among states have remained unresolved. 17. Malaysia maintains friendly relations with all countries and seeks peaceful resolution of disputes based on international law. The South China Sea should be a platform for cooperation and connectivity, not an area of confrontation or conflict area, which is in line with the spirit of Zone of Peace, Freedom and Neutrality (ZOPFAN). This cooperation is crucial to ensure freedom of navigation and overflight as provided by international law, including the 1982 United Nations Convention on the Law of the Sea (UNCLOS). Malaysia insists on the use of diplomacy and international law to manage disputes. 22