Malaysian Prime Minister Anwar Ibrahim has raised concerns over the growing military infrastructure on Balabac Island in southern Palawan, saying Malaysia needs to strengthen its defense capabilities in Sabah amid changing regional security conditions.
Anwar made the remarks on Tuesday, August 18, 2026, during the closing of Malaysia’s Budget 2027 engagement session in Putrajaya, where he discussed the country’s defense requirements and the need for additional funding.
According to Malaysia’s national news agency Bernama, Anwar said Malaysia could not match the scale and sophistication of military and air facilities being developed in Balabac but stressed that the country must strengthen its basic defense capabilities.
“As a close neighbour, and given the issue of the claim over Sabah, naturally we are somewhat concerned, although our bilateral relations with the Philippines are very good,” Anwar said.
He said Malaysia may need to allocate hundreds of millions to billions of ringgit to strengthen its defense capabilities as the regional security environment changes.
Anwar specifically cited the proximity of Balabac to Banggi Island in Sabah, describing the Philippine island as roughly a 20-minute transit away.
The proximity is particularly significant because Malaysia’s eastern state of Sabah has long been subject to a territorial claim by the Philippines, although Manila and Kuala Lumpur maintain generally strong bilateral relations.
Balabac has gained increasing military significance under the Enhanced Defense Cooperation Agreement (EDCA) between the Philippines and the United States.
The agreement provides U.S. forces rotational access to designated Philippine military facilities and supports joint defense infrastructure and activities. The facilities remain under Philippine control.
In 2026, Balabac was used for military activities during the Balikatan exercises, with Philippine, U.S. and Australian forces conducting operations on and around the island, including activities involving the Balabac airfield.
The island’s airfield has also undergone major improvements, including a runway measuring about 3,000 meters. Earlier reports indicated that the upgraded runway had not yet officially entered service.
For Malaysia, the developments are taking place near an existing security frontier.
Banggi Island is part of Malaysia’s security architecture in northern Sabah and lies close to the country’s maritime boundary with the Philippines. Anwar also visited a security post on Banggi earlier this year as Malaysian authorities assessed security conditions along the eastern Sabah frontier.
Anwar said Malaysia does not have the capacity to develop military and air facilities on the same scale as those being built elsewhere in the region.
“But at the very least, our basic defence capabilities must be strengthened,” he said.
The proposed increase in Malaysia’s defense spending is not limited to responding to developments in Balabac. Anwar has also cited the need for broader military modernization, improved readiness and better support for military personnel.
The additional funding could cover defense equipment as well as improvements to military housing, medical facilities and other basic infrastructure.
The Malaysian government’s concerns come as the United States and its regional partners expand defense cooperation with the Philippines amid growing strategic competition involving China and increasing military activity across the South China Sea and surrounding waters.
For Palawan, the developments place Balabac at the center of an increasingly important regional security corridor.
The municipality’s location at the southern tip of the province puts it close to both Sabah and the Sulu Sea, while its expanding defense infrastructure gives the island a growing role in the Philippines’ maritime security posture.
Anwar’s remarks on August 18 emphasize that developments taking place in Balabac are now being closely watched beyond Philippine territory, notably by Malaysia, whose Sabah frontier lies only a short distance from the island.