Threat Convergence Transnational Security Threats in the Straits of Malacca The Fund for Peace is an independent, nonpartisan, 501(c)(3) non-profit research and educational organization that works to prevent violent conflict and promote sustainable security. We promote sustainable security through research, training and education, engagement of civil society, building bridges across diverse sectors, and developing innovative technologies and tools for policy makers. 55th Anniversary 1957-2012 A leader in the conflict assessment and early warning field, the Fund for Peace focuses on the problems of weak and failing states. Our objective is to create practical tools and approaches for conflict mitigation that are useful to decision-makers. Copyright © 2012 The Fund for Peace. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means without prior written consent from The Fund for Peace. The Fund for Peace Transnational Threats Threat Convergence Report Series Editor Patricia Taft Report Written by Felipe Umaña The Fund for Peace Publication FFP : TTCVR1213 (Version 08E) Circulation: PUBLIC The Fund for Peace 1720 I Street NW, 7 Washington, D.C. 20006 T: +1 202 223 7940 F: +1 202 223 7947 www.fundforpeace.org www.fundforpeace.org 2 The Fund for Peace The Straits of Malacca Overview Introduction & Contents The Straits of Malacca consist of a Indeed, in the area around the Straits of narrow but lengthy waterway that extends Malacca, porous borders and poorly Definition of Malacca Straits 4 more than 500 miles from the eastern limits monitored ports allow these threats to Why the Straits of Malacca Matter 5 of the Andaman Sea to the South China Sea in infiltrate the coastal nations. A lack of strong Southeast Asia. Straddling the sea route government control pervades in certain Maritime Piracy and Armed Robbery 7 between the Indonesian island of Sumatra, pockets and gives rise to corruption. In this the Thai-Malay Peninsula, and the small city- governmental blind spot, crimes burgeon and Littoral, User and state of Singapore, the Straits of Malacca are flourish, and due to economic Non-State Security Capacity 10 known globally for their economic, political, marginalization, individuals frequently turn Indonesia 10 environmental, and strategic importance. The to a life of crime, fueling hidden, black Straits themselves link the Indian Ocean to market economies. In addition, a number of Malaysia 12 some of Asia’s most powerful economies, as separatist organizations and terrorist cells Singapore 13 well as many other trade-influential occupy land far from the control of User Countries 14 countries, like the United States, Germany, governments, adding to the already high and Russia. levels of state insecurity. To add to this slew Non-State Shipping Actors 15 of security threats, the South China Sea’s Security Measures and Initiatives 16 More than 60,000 vessels traverse the critical contested territorial disputes compound the chokepoint per year, carrying more than a stress and tension surrounding the Straits of Terrorist Organizations 1 third of global trade. Due to the amount of Malacca. and Other Insurgencies 18 traffic, the region is also home to some of the busiest ports in the world, particularly in Needless to say, the Straits of Malacca face Black Market Activities Singapore. 2 The Straits attract foreign multiple security issues that affect the three and Other Crimes 21 investment with the amount of commerce littoral states and the Straits’ user nations. In Recommendations 23 and trade it supports. The Straits are also the fact, its geographical position makes it not focal point of legal and political issues, such only valuable to the states that border the Conclusion 25 as the sovereignty of territorial waters and waterway, but also an intensely critical region the responsibility to secure the waterway. for foreign countries dependent on trade Endnotes 26 Likewise, the waterway is a source of passing between the Pacific and Indian environmental concern for the littoral Oceans. Security of these sea-lanes is About The Fund for Peace 30 countries of Indonesia, Malaysia, and therefore of paramount importance for state Singapore. The maintenance of the actors and should be galvanized on numerous environment is important to all three states levels. in order to not deter tourism or development projects in the area, both of which can in turn Firstly, it is essential for Indonesia, Malaysia, influence the economic and political sectors and Singapore to gather national and directly. Finally, the Straits are crucial for international resources and implement ways worldwide communication and resource to combat the multitude of threats facing the exchange, making them internationally Straits of Malacca. Secondly, extra-regional significant. actors should cooperate with nations in the region in various capacities to ensure that Unfortunately, however, the Malacca Straits global trade is not adversely affected. have become notorious for maritime robbery Similarly, extra-regional actors can play a role and pirate attacks, as well as for being a in ensuring that the root causes of these transit hub for myriad black markets and a problems are treated effectively. Lastly, haven for belligerent non-state actors. shipping companies, non-governmental www.fundforpeace.org 3 The Fund for Peace Introduction organizations, and other non-state actors can be done to secure the Straits of Malacca. fluctuate with the passing of history and with a stake in the Straits should band Though incidences of piracy and prominent time. Thus, a leveling off does not signal a together and assist their home governments terrorist activity have largely diminished in complete and total disappearance. Therefore, in fostering greater security. the past few years, it is still important to security in the Malacca Straits must remain acknowledge their persistence and decide on the radar of global actors in order to Although state capacities differ greatly in upon ways to combat these and other properly and efficiently protect this very some respects, it is still crucial for all actors security problems directly. Transnational important waterway. involved to come together and discuss what threat trends like these are organic and Definition of Malacca Straits T H A I L A N D Straits of Geopolitically, the Straits of Malacca fall However, in contemporary times, under a number of different territorial and governments and non-governmental Phuket Malacca maritime jurisdictions. Primarily, the Straits organizations around the world have altered are defined as falling between Peninsular that definition to also include the Banda Aceh S t r a i t s o f M a l a c c a Malaysia (with a small portion of southern commercially significant Singapore Straits George Thailand) and the island of Sumatra with east and Singapore in its totality. 4 Still other Town M A L A Y S I A and west limits bordering Singaporean and definitions enlarge the geographical expanse Indian (the Andaman and Nicobar Island of the Malacca Straits to include the eastern chain) territorial waters. The International limits of the Andaman and Nicobar island Medan Kuala Lumpur Hydrographic Organization, the non- chain, which is controlled by India. This governmental body in charge of documenting definition is usually used in reference to I N D O N E S I A Singapore hydrographic and maritime limitations, has maritime piracy, and highlights the defined the Straits of Malacca as the geographical vastness the waterway has in following: terms of extended accountability and • On the West: From the northernmost point government responsibility. Padang of Sumatra (Pedropunt) and Lem Voalan on the southern extremity of Phuket Island, For purposes of this report, the definition of Thailand the Straits of Malacca will include the territorial waters of India, Indonesia, • On the East: From Tanjong Piai on the Malaysia, Singapore, and Thailand. The term Malaysian Peninsula and Klein Karimoen, “littoral states,” however, will solely refer to Indonesia Indonesia, Malaysia, and Singapore, as the • On the North: The Southwestern coast of Straits fall under these states’ primary the Malay Peninsula authority. • On the South: The northwestern coast of Sumatra to the eastward city of Tanjung Kedabu to Klein Karimoen, Indonesia 3 www.fundforpeace.org 4 The Fund for Peace The Straits of Malacca Why the Straits of Malacca Matter The Straits of Malacca are a critical responsibility of the three states – Indonesia, Commercial traffic through this important global trade artery, with some of the heaviest Malaysia, and Singapore. User nations and waterway is bidirectional: raw materials and traffic of any maritime choke point smaller non-governmental actors also have other imports from Europe, Africa, and the worldwide. Between 60,000 5 to 94,000 6 stakes in the region, but for international Middle East are shipped in vast quantities on shipping vessels pass through the Straits legal reasons, they have minimal direct tankers and bulk carriers through the Persian annually, carrying about a third of global influence. In very specific situations, India Gulf and the Indian Ocean to destination trade. 7 Indeed, the Straits see three times and Thailand are accountable for maritime countries in the Pacific Rim. Trade from East more general traffic than the Panama Canal security, as their territorial waters share a and Southeast Asia reciprocates this and twice as much as the Suez Canal. 8 more abbreviated