The Strait of Malacca: Nexus of Global Trade, Chinese Investment, and Geopolitical Strategies

Abstract

The Strait of Malacca is a pivotal maritime corridor facilitating over 25% of global trade and connecting key regions, underpinning logistics and energy security. This article examines the transformative impact of Chinese investments under the Belt and Road Initiative (BRI) in Malaysia, Indonesia, Thailand, and Singapore, focusing on projects like the Melaka Gateway and Kuantan Port. These initiatives enhance trade flow, connectivity, and economic growth but also raise concerns over debt dependence and environmental sustainability. The analysis extends to the strategic interests of major powers, including the United States and Russia, in maintaining influence over this chokepoint. This research employs secondary data exclusively in the form of articles, books and reports and therefore is qualitative. The analysis emphasizes how BRI projects, such as the Melaka Gateway and Kuantan Port, have significantly improved infrastructure development while also sparking debates over debt sustainability and environmental challenges. Furthermore, the article explores geopolitical rivalries among major powers, highlighting implications for energy security and global trade dynamics. It underscores the Strait of Malacca’s pivotal role as a nexus of economic and geopolitical strategies, advocating for sustainable development and robust international cooperation to manage future challenges effectively. The focus lies on advancing sustainable port development across the Strait of Malacca by implementing multilateral partnerships and green protocols under which AI and blockchain ensure cybersecurity. An evaluation must be performed regarding China's BRI investments to determine their lasting effects upon economics, environment and geopolitics with an emphasis on debt sustainability. A regional energy plan should prioritize renewable energy development with strengthened security protocols to achieve safe trading practices.