Agreement between Brunei and Malaysia: An Act of Statesmanship

May 16, 2010

Comment: The article by Datuk Deva Mohd Ridzam, a distinguished diplomat, gives us a balanced analysis of the March 16, 2009 Agreement between Brunei and Malaysia. It contradicts the views of former Prime Minister, Tun Dr. Mahathir Mohamad  which gave us the impression that Malaysia got a raw deal.

It is obvious to me that the agreement reached between Tun Abdullah Badawi as our Prime Minister then and The Sultan of Brunei was a genuine attempt to resolve outstanding bilateral issues so that our special relationship can be brought to a new level. Brunei now has its own territorial waters and economic zone while Malaysia will have sovereignty over Limbang, Sarawak. Block L and M (using the codes adopted by Malaysia) are clearly in Brunei’s territorial waters.

It is clear that Wisma Putra was hard at work to make this deal possible and should be congratulated , therefore, for their effort, without  which it would not have been possible for Prime Minister Badawi to enter into an agreement of this nature and break new ground in our relations with Brunei. Diplomacy must work and in this instance, it worked because both the Prime Minister of Malaysia and the Sultan of Brunei wanted to make it happen for mutual benefit. We salute both leaders for their act of statesmanship. –Din Merican

The March 16, 2009 Agreement between Brunei and Malaysia:  Act of Statesmanship

by Datuk Deva Mohd. Ridzam

The dust has somewhat settled since the story on the agreement signed between Brunei and Malaysia to resolve several outstanding issues over land and sea borders first broke out in the blogosphere some three weeks ago.

Initially, there was some confusion and blurring of key issues. Misperceptions or distortions caused by a lack of knowledge on the background can be avoided by better understanding of facts as well as each country’s compulsions and policy processes better. Above all, we must treat our leaders and others and their Governments with respect.

Our relations with Brunei cannot be viewed in the same way as those with our other neighbours. Our relations with Brunei are special. The time has, therefore, come for calm reflection.

In diplomacy, one must know when to quibble and when to negotiate. To their credit, the Sultan of Brunei and former Prime Minister, Tun Abdullah Ahmad Badawi, knew that the time had come to negotiate in earnest and strike a win-win deal.

At the heart of the matter are:

a) Overlapping claims in the sea, including two oil and gas concessions known by Malaysia as Blocks L & M and by Brunei as Blocks J & K; and

b) The status of Limbang, which since colonial times has been part of Sarawak.

The resolution of the issues, the leaders knew, was important not just for their peoples concerned, but also because it would have a positive impact regionally.

Let us establish some facts about the agreement. For example, claims that Malaysia stands to lose USD 100 billion (RM320.9 billion) in potential oil revenue are nothing more than speculation. Because of the dispute, no detailed survey has ever been carried out in the two Blocks, let alone any drilling.

It is pointless to trivialize some issues and hype-up others. The Malaysian public and the world deserve much more than criticisms made out of ignorance. One ought to present the public with as near the truth as possible.

To put the whole matter into context, let us be clear about what had happened in the not-so- distant past. There are important developments that we should bear in mind, and they are as follows:

• On December 21, 1979, Malaysia announced to the world a map outlining its territorial waters and continental boundaries. Brunei lodged an official protest, stating that the said map ignored its rightful entitlement to its own maritime zones as well as access to international waters in the maritime areas adjacent to Sabah and Sarawak.

• Conscious of the fact that the boundaries in the said map were unilateral claims on our part, our Government subsequently said that it will negotiate with all of our neighbours whose claims might overlap with those of Malaysia’s.

• When PETRONAS moved to award exploration concessions in the disputed waters; Brunei did the same, thus triggering a dispute between our two countries since then.

Those basic issues were not going to vanish into thin air so long as they are not addressed. The Exchange of Letters between the Prime Minister of Malaysia and the Sultan of Brunei signed on March 16, 2009 fully resolved those outstanding issues.

In a nutshell, it is a truly historic document, a culmination of a 20-year determination of both governments to resolve through friendly negotiations those outstanding boundary issues both on the sea.

Brunei’s magnanimity and Malaysia’s astute negotiations produced the breakthrough. Brunei, in return for Malaysia’s recognition of its sovereign rights over the resources in the Blocks concerned – based on the 1982 UN Convention on the Law of Sea (UNCLOS) – accepted Malaysia’s participation as a commercial partner in the development of the oil and gas in those areas for 40 years, with effect from the date of the commercial partnership. And when a joint survey is completed with the demarcation of the international land boundary between Malaysia and the border markers are planted on the ground, it will show that the entire territory of Limbang falls within the borders of Sarawak. This will put to rest any claims over the area.

Obviously, the joint survey work would take a couple of years to be completed. But its significance is that once the exercise is completed, the boundary lines agreed upon shall be final and permanent, thus settling once and for all, any past dispute or claim concerning the area known to us as Limbang, one of the 11 administrative divisions of Sarawak.

The outcome of the joint survey in respect of demarcating the international land boundary between Malaysia, in the Limbang area, and Brunei, on the other side, would not result in any loss of territory for Malaysia. On the contrary, the joint survey will only reaffirm that every bit of the territory involving Limbang is part of Sarawak, fully and unambiguous under Malaysian sovereignty.

The same goes in respect of the sea areas concerned. As things stands now, there exist no recognized or agreed international boundaries in the South China Sea except in one stretch between Malaysia and Indonesia.

One must remember that the Malaysian Government, and for that matter any other government, has the mandate to enter into an international agreement to establish maritime boundaries between Malaysia and a neighbouring country. Indeed, international law requires that States resolve their maritime and other disputes in a peaceful manner.

Negotiations to establishing maritime boundaries will be an on-going exercise. Let us not forget that the maritime boundaries in the South China Sea, save those parts which have been legally established through international agreements, are unilateral in nature. Until such time that Malaysia negotiates with neighbouring countries concerned, our maritime boundaries with, say, Vietnam and the Philippines, will remain “not final and not permanent”.

Be that as it may, one must always remember that sovereignty is not some mystical absolute. In this regard, nation states the world over – once they are satisfied with the conditions and necessary safeguards – do decide to part with a degree of national sovereignty over some parts of sea and land boundaries for the sake of a larger synthesis and/or a higher goal: the enhancement of mutual political trust and expanded bilateral cooperation for mutual benefit.

Now in respect of Brunei and Malaysia, it would have been a folly to have missed an opportunity for a realistic and practical solution. Both countries simply cannot afford to pass on these problems to future generations to solve.

The March 16, 2009 agreement not only adheres to the principles of good-neighbourly relations, it is also founded on international law and our own Constitution. Abdullah and the Sultan of Brunei showed statesmanship, political will backbone and far-sightedness in reaching that settlement.

There is no point for leaders to sit on their hands indefinitely and hope that something will happen. Things do not happen that way. The two leaders decided to negotiate and clinch a deal that is fair and reasonable which both sides both sides can live with.

The agreement therefore reflects mutual respect for each other’s concerns and sensitivities. It was premised upon mutual benefit, and both countries and peoples will gain as a result.

Leaders need to seize the moment instead of sweeping things under the carpet. Without political solution, too many problems will fester and bilateral relations will deteriorate. By acting decisively the Prime Minister of Malaysia and the Sultan of Brunei have removed outstanding issues and prevented them from becoming impediments to the development of overall friendly ties.

Foreign policy is a quest for congruence of diverse interests. One cannot proceed on the basis that one country’ interest alone matter and that of others are false. Indeed, compromise is necessary for cooperation, and cooperation is essential for the resolution of most of the existing bilateral, regional and international problems. In this instance both Brunei and Malaysia walked the extra mile to improve bilateral relations.

The Letters signed by the two leaders thus provide the “glue of common bilateral interest” that would bind bilateral relations for generations to come. There is certainly today a “feel good” factor in the relationship today.

In appraising this historic document, one has always to bear in mind that while the peoples of both countries enjoy great affinity and fraternity, they operate under different political systems. The ethos of the countries concern also matter. Given this, the way of resolving sensitive issue require creativity and imagination.

Neighbours must show goodwill, understanding and tolerance: the basic principles of living in ASEAN. Letting issues of sovereignty claims to fester serves no one.

The 16 March 2009 agreement is a great step towards casting off the fetters of the past. Bilateral relations between our two countries today are back on a solid track and we should build on them as further demonstration of mutual trust and respect.

The agreement between Brunei and Malaysia is important not just for the peoples of our two countries. It is a monumental development regionally as well. The leaders have brought to fore the aims and objectives of the ASEAN Community, which envisages of nation states at peace with each other and living harmoniously side by side.

Datuk Deva Mohd Ridzam was formerly Malaysia’s Ambassador to Cambodia, Belgium, Luxembourg and the EU. He is a distinguish fellow of the Institute of Strategic and International Studies, Malaysia (The Week of May 17 – May 23, 2010 Issue of the EDGE)

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