The Strategic Importance of the Straits of Malacca
ZEF Working Paper Series No. 17
17 Pages Posted: 14 Oct 2010
Date Written: 2006
World trade and energy resources have to pass certain "choke points" between areas of production and their final destination. One of these is the Straits of Malacca, the sea passage connecting the China Sea with the Indian Ocean. Trade through the Malacca Straits historically played a major role in the formation of the littoral states such as Srivijaya, Aceh, Melaka, Johore, the Straits Settlements and more recently Malaysia, Indonesia and Singapore. The Straits are one of the world's most vulnerable areas because of its high potential for political conflict, piracy and ecological disaster. They are not just a conduit for sea traffic from East to West or West to East, but also a crossroads of cultures and societies. With closer regional economic integration cross-Straits communication is increasing. Cross-boundary social networks are ethnically diverse but closely integrated. Thus the Straits bear great opportunities for the economic and social development of the littoral states of Indonesia, Singapore, Malaysia and Thailand. Moreover, peace and stability in the region is a precondition for regional development, for uninterrupted energy supplies and international trade between the European Union and East Asia. Based on field observations and recent statistical sources the paper outlines the current strategic importance of the Straits of Malacca for world trade and regional development.
Keywords: international trade, shipping, development, Indonesia, Malaysia
JEL Classification: O53, R1, R40
Suggested Citation: Suggested Citation