communication could jeopardise the integrity of the two territories and Malaysia as a whole. The Strait of Malacca is one of the main international maritime routes and services almost the entire East-West maritime transportation. It also hosts Malaysia’s major ports and business centres and is the transportation route for eighty percent of Malaysia’s exports and imports. Malaysia explicitly regards any encroachment into the Strait of Malacca as a threat to its national interests, defence and sovereignty. Moreover the control of the Straits of Malacca by an external power would adversely affect the economic prosperity of most countries including major powers. The Strait has the potential to become a source of dispute for external powers resulting in it becoming a conflict “hotspot” which could negatively impact Malaysia’s security and defence. Malaysia’s standpoint is that the Strait of Malacca should be free from external powers’ involvement and that it is the responsibility of the littoral States to defend the sovereignty of the Strait of Malacca. The Strait of Singapore, parts of which falls within Malaysia’s territorial waters is the world’s most important and busiest waterway. The Strait of Singapore is not only important for international commerce but also for internal trade and sea communications between Peninsular Malaysia, Sabah and Sarawak. The Strait of Singapore is critical for Malaysia’s maritime defence and like the Strait of Malacca is one of the country’s strategic sea lines of communications. Malaysia must have the defence ability to ensure that its primary areas premised on national interests are defended by all possible means. It also needs to defend and enhance its ability to defend its sovereignty over its terrestrial and maritime realms including the EEZ, continental shelf and all strategic sea lines of communication and airspace. Thus the MAF’s development has to be based on the defence of these three areas. National defence however extends beyond preparing for an eventual conflict but is a guarantor of sovereignty and independence which providing a catalyst for national development programmes. MALAYSIA’S NATIONAL DEFENCE POLICY Page 4