The Chinese-funded waterway project in Cambodia, the Funan-Techo Canal also known as the Tonle Bassac Navigation and Logistics Road Project, could have a significant impact on Malaysia's economic and geopolitical landscape.
In addition, the situation of tension between China and Malaysia is expected to increase following Beijing's previous warning ordering the cessation of activities in Sarawak's oil-rich waters.
The 180 km long canal, which is part of China's Belt and Road Initiative, will connect Phnom Penh to the port of Sihanoukville, potentially increasing China's influence in Southeast Asia.
The project, funded by the China Road and Bridge Corporation (CRBC), cost 1.7 billion and is expected to be completed in 2028.
The waterway may allow for a larger Chinese military presence in the region, particularly near Cambodia's Ream Naval Base.
For Malaysia, the canal will pose a risk to its hydrocarbon projects in the Gulf of Thailand, where it shares a joint development area with Thailand and Vietnam.
Increased Chinese naval activity could increase tensions in the region, especially near the Malaysia-Vietnam oil and gas fields.
The project highlights China's growing influence, which may challenge Malaysia's economic and security interests, especially in disputed maritime areas.
