No points for guessing that this project slated to begin construction by end-July is opposed by the US and funded by Iran (National Iranian Oil Company
or NIOC is one of the chief financiers of the project costing 50 billion Ringgit or US$14.5bn). China palpably is happy, since Beijing neither can nor does it intend to challenge the US supremacy at sea, thus it is busy aiding such pipeline projects (Gwadar port in Pakistan & Myanmar’s pipeline project from Sittwe to Kunming, capital of Yunnan Province) to ensure the smooth flow of hydrocarbons from the Gulf. Interestingly, Japan too has shown interest in the Malaysian project and is also one of its financiers, along with Saudi Arabia. “Despite the political equations with the US, Tokyo’s strategic energy demands ensure that it supports all initiatives which help it to secure its crude supply-chains”, said Dr. Vijay Sakhuja of the Institute of Southeast Asian Studies, Singapore, in a chat with B&E. The Malaysian initiatives are a cause of concern for Singapore. As Dr. Sakhuja says: “Should the proposed Malaysian mega-project reach its fruition, which it would (given that there is both domestic political & international financial support) and will have an impact on Singapore’s dominant position as Asia’s frontrunner in trans-shipment in Asia.”
The moral of the story is that while the US is busy flaunting its military muscle to secure its economic interests across the globe, others are quietly and diplomatically inching ahead to replace US as the “strategic balancer” in Asia-Pacific.
or NIOC is one of the chief financiers of the project costing 50 billion Ringgit or US$14.5bn). China palpably is happy, since Beijing neither can nor does it intend to challenge the US supremacy at sea, thus it is busy aiding such pipeline projects (Gwadar port in Pakistan & Myanmar’s pipeline project from Sittwe to Kunming, capital of Yunnan Province) to ensure the smooth flow of hydrocarbons from the Gulf. Interestingly, Japan too has shown interest in the Malaysian project and is also one of its financiers, along with Saudi Arabia. “Despite the political equations with the US, Tokyo’s strategic energy demands ensure that it supports all initiatives which help it to secure its crude supply-chains”, said Dr. Vijay Sakhuja of the Institute of Southeast Asian Studies, Singapore, in a chat with B&E. The Malaysian initiatives are a cause of concern for Singapore. As Dr. Sakhuja says: “Should the proposed Malaysian mega-project reach its fruition, which it would (given that there is both domestic political & international financial support) and will have an impact on Singapore’s dominant position as Asia’s frontrunner in trans-shipment in Asia.”The moral of the story is that while the US is busy flaunting its military muscle to secure its economic interests across the globe, others are quietly and diplomatically inching ahead to replace US as the “strategic balancer” in Asia-Pacific.
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Source: IIPM Editorial, 2006
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative
