Prime Minister Anwar Ibrahim said that Malaysia will not bow to demands by China to stop its oil and gas exploration in the South China Sea as the activities are within the country’s waters.

Mr Anwar said Malaysia would continue to explain its stance following China’s accusations in a protest note in February to the Malaysian Embassy in Beijing that Kuala Lumpur had infringed on its territory.

Malaysia’s Foreign Ministry said it was investigating the leak of the diplomatic protest note that was published by a Filipino media outlet on August 29.

“We have never intended in any way to be intentionally provocative, unnecessarily hostile. China is a great friend, but of course we have to operate in our waters and secure economic advantage, including drilling for oil in our territory,” Mr Anwar said in a televised news conference from Russia, where he is on an official visit.

The Philippine Daily Inquirer published the diplomatic note in which Beijing reportedly demanded that Malaysia immediately halt all activities in an oil-rich maritime area off Sarawak state on Borneo island.

The report said China had accused Malaysia of encroaching on areas covered by its 10-dash line, Beijing’s controversial map showing its claims to sovereignty in the South China Sea.

The diplomatic note also expressed Beijing’s displeasure over Malaysia’s oil and gas exploration activities near the Luconia Shoals, which is near to Sarawak, it said.

Mr Anwar said it was not the first time China had sent a protest note over the South China Sea dispute but stressed it should not mar a strong relationship.

Mr Anwar had called China a “true friend” during a visit to Malaysia by Chinese President Li Qiang in June to mark 50 years of diplomatic ties.

Russia Eastern Economic Forum
Malaysia’s Prime Minister Anwar Ibrahim gestures as he speaks upon his arrival at the International Airport in Vladivostok, Russia (Yulia Egorova/AP)

“We have said that we will not transgress other people’s borders,” Mr Anwar said.

“They know our position… They have claimed that we are infringing on their territory.

“That is not the case. We say no, it is our territory.

“But if they continue with the dispute, then okay, we will have to listen, and they will have to listen.”

Vietnam, Brunei, Malaysia, the Philippines and Taiwan all dispute Beijing’s claims to almost the entire South China Sea.

Unlike the Philippines which has had public clashes with China in the disputed area, Malaysia’s government prefers diplomatic channels.

It rarely criticises Beijing publicly, even though Chinese coast guard ships have sailed near Malaysia’s waters.

This is partly to protect economic ties as China has been Malaysia’s top trading partner since 2009.