Malaysia, Indonesia, Singapore aligned to keep Malacca Strait open: Vivian Balakrishnan

Singapore, Malaysia and Indonesia have reiterated their shared strategic commitment to keeping the Strait of Malacca open and free from tolls, as global maritime routes face increasing strain due to escalating tensions in the Middle East, according to Foreign Affairs Minister Dr Vivian Balakrishnan.

Speaking on 22 April 2026 at CNBC’s Converge Live event, Dr Balakrishnan underscored the alignment among the three littoral states, emphasising that open access to the strait remains a mutual priority rooted in economic necessity and international law.

Dr Balakrishnan said Singapore, Malaysia and Indonesia operate under a longstanding “cooperative mechanism” that ensures vessels can pass through the Strait of Malacca without being subjected to charges.

“We do not have tolls. All of us are trade-dependent economies. All of us know it is in our interest to keep it open,” he said.

He added that the alignment among the three countries is both strategic and deliberate.

“The point here is that all three countries have a strategic interest and are strategically aligned in keeping it open. That is not something which you can take for granted in many other places,” he said.

The Strait of Malacca is one of the world’s busiest shipping lanes, serving as a critical conduit for global trade and energy supplies. Its continued accessibility is seen as vital not only for Southeast Asia but for international commerce more broadly.

Middle East tensions heighten concerns

Dr Balakrishnan’s remarks come against the backdrop of heightened uncertainty in global shipping routes, particularly following developments in the Strait of Hormuz.

Restrictions in that region have raised concerns about the potential weaponisation of maritime chokepoints, with implications for energy security and trade flows worldwide.

The minister warned that such developments underscore the importance of preserving open and rules-based access to critical waterways in Southeast Asia.

Adherence to international law

Dr Balakrishnan stressed that the region’s approach is firmly grounded in the United Nations Convention on the Law of the Sea (UNCLOS), which guarantees the right of transit passage.

“With respect to both America and China, we have told both of them, we operate on the basis of UNCLOS,” he said.

“The right of transit passage is guaranteed for everyone. We will not participate in any attempts to close or interdict or to impose tolls in our neighbourhood.”

He reiterated this position when asked whether Singapore would align itself with either the United States or China in the event of rising tensions.

“We will not participate in any attempt to close or to interdict or to impose tolls of traffic, maritime traffic, and overflight in this age,” he said.

Neutral stance amid major power rivalry

Dr Balakrishnan reaffirmed Singapore’s longstanding policy of not taking sides between the United States and China, even as competition between the two powers intensifies.

Quoting founding prime minister Lee Kuan Yew, he said: “We will refuse to choose. The way we conduct our affairs is we assess what is in Singapore’s long-term national interest.”

He added that Singapore’s decisions are guided solely by its own priorities, regardless of external pressure.

“And if I have to say no to Washington or Beijing or anyone else, we do not flinch from that. But they will also know that when we say no, it is not at the behest of the other party; we are acting in our own long-term national interest.

“We will be useful, but we will not be made use of.”

On whether greater pressure from either superpower could emerge in future, Dr Balakrishnan said: “Not yet, for us.”

Economic ties with major powers

Dr Balakrishnan highlighted the depth of economic engagement between Southeast Asia and the United States, noting that American investments in the region exceed those in several major economies combined.

He said he regularly reminds US leaders of their economic stake in Singapore.

“I remind the president that you have got very healthy returns from your investments in Singapore,” he said.

“I also remind the US administration that you have got a significant trade surplus against us, both in goods and services. So, do you have skin in the game? I always remind the president, you have good skin in the game down here.”

He also pointed to Singapore’s position as a major source of foreign investment for China, describing the country as strategically positioned to benefit from engagement with both powers.

“So, are we exquisitely positioned to take advantage of developments in both America and China? We are,” he said.

Risks of geopolitical escalation

Despite these advantages, Dr Balakrishnan cautioned that a deterioration in US-China relations could have far-reaching consequences.

“If they go to war in the Pacific, what you are witnessing now in the Strait of Hormuz is just a dry run,” he said.

“So, the biggest if, the biggest variable, is not just what happens in the Middle East, but what happens in the Pacific.”

Earlier in April, he told parliament that Singapore would not negotiate for safe passage through the Strait of Hormuz, arguing that such arrangements would undermine fundamental principles of international law.

Indonesia floats levy proposal

On the same day as Dr Balakrishnan’s remarks, Indonesia’s Finance Minister Purbaya Yudhi Sadewa introduced the idea of imposing a levy on ships passing through the Strait of Malacca.

Speaking at a symposium in Jakarta, he suggested that Indonesia should leverage its strategic geographic position to generate economic value.

“As the president has instructed, Indonesia is not a peripheral country. We sit on a strategic global trade and energy route, yet ships pass through the Malacca Strait without being charged - I’m not sure whether that’s right or wrong,” he said, as reported by Detik.

The proposal was framed as part of a broader push aligned with President Prabowo Subianto’s directive for Indonesia to assert itself as a key player in the global economy.

Inspired by Hormuz developments

Purbaya said the idea was partly inspired by Iran’s plan to charge vessels transiting the Strait of Hormuz, a route that carries roughly a quarter of the world’s seaborne oil trade.

The strait has largely been blocked since 28 February, following attacks by the United States and Israel on Iran. The conflict has entered its eighth week.

He suggested that a similar approach in Southeast Asia could yield substantial revenues if implemented jointly by Indonesia, Malaysia and Singapore.

“Iran is now planning to charge ships passing through the Strait of Hormuz. If we split it three ways – Indonesia, Malaysia, and Singapore – it could be quite substantial. Our stretch is the largest and the longest,” he said.

Challenges to implementation

Purbaya acknowledged that implementing such a levy would be complex and would require agreement among all three littoral states.

According to his remarks, Indonesia cannot act unilaterally despite controlling the largest portion of the strait.

“Singapore is small, Malaysia is similar - perhaps we could split it in two. If only it were that simple, but it isn’t. So with all our resources, we must not think defensively; we need to start thinking more offensively, but in a measured way,” he said.

His comments were reported by multiple Indonesian outlets, including Detik, Berita Satu, Inilah.com, Periskop.id and Kompas.

The Indonesian government currently views the proposal as an initial idea rather than a formal policy direction.

Purbaya said regional coordination and the potential impact on global trade flows would be critical considerations before any further steps are taken.