Earlier this month, two Chinese nationals were arrested and charged under the Official Secrets Act. They had allegedly flown a drone over a restricted zone adjacent to Wisma Pertahanan in Kuala Lumpur, purportedly mapping sensitive areas within the Defence Ministry complex.
Just days later, another Chinese traveller was jailed after physically assaulting an Immigration officer at Kuala Lumpur International Airport during exit checks.
These incidents have forced Malaysia to confront a dilemma at the heart of its foreign policy and economy: how to welcome Chinese visitors, students, and long-term residents – now its largest foreign group in education, tourism, and residency schemes – without exposing the nation to espionage, social tensions, or sovereignty risks.
The stakes are particularly high as Malaysia prepares for Visit Malaysia Year 2026 and leans on inflows from China to fuel economic recovery. China is now Malaysia’s largest source of foreign students and a critical tourism market. Data from Education Malaysia Global Services (EMGS) highlights this trend.
In 2024, more than 56,000 Chinese students were enrolled in Malaysian higher education institutions, up sharply from only 9,000 in 2019. Chinese tourist arrivals surged by 144 per cent last year, according to the Chinese ambassador to Malaysia, Ouyang Yujing.
These flows are vital. Chinese students help sustain universities financially, while tourists drive hotels, retail, and the wider services sector. Yet the scale of this presence also creates strategic vulnerabilities.
The drone incident underscores how espionage, though rare, remains a real threat. An intelligence expert told Twentytwo13, on condition of anonymity, that recent arrests of Chinese nationals for spying should not be seen as isolated cases. Similar incidents involving foreign or locally hired spies have occurred previously but were kept secret. Globally, cyber espionage is even more prevalent.
Those arrested often claim ignorance, insisting they entered as tourists. “They always claim to be tourists. That has always been the standard answer. There have been many cases like this,” the expert said.
The influx of foreign students, especially from China, is also under scrutiny. “There has been pressure to monitor incoming foreign students, not only in private institutions but also in local universities,” the source said, noting that some private higher learning institutions are now owned by Chinese companies.
The Malaysia My Second Home (MM2H) programme is another channel of significant Chinese interest. Relaunched in 2022 with stricter requirements, it continues to attract applicants from China, who make up almost half of the 57,686 successful participants as of 2024.
Last week, Home Minister Datuk Seri Saifuddin Nasution Ismail told Parliament that Malaysia has seen “three espionage-related arrests” since 2022 – two involving Chinese nationals, including the recent drone case, and one involving a Malaysian private investigator accused of collaborating with Israel’s Mossad.
Saifuddin outlined Malaysia’s approach as “prevention, detection, and enforcement”, using enhanced cyber intelligence, inter-agency coordination, and regional information-sharing systems to protect sensitive sites. Foreign spies are blacklisted and deported after serving their sentences. “If there is an extradition agreement with their country of origin, we will extradite them,” he said, noting Malaysia has treaties with 11 countries, including the US, Indonesia, Thailand, and Australia, but not China.
Prime Minister Datuk Seri Anwar Ibrahim has framed Malaysia as a neutral yet confident actor in global geopolitics. While welcoming Chinese visitors and investment, he has emphasised that Malaysia will never bow to coercion from China or any other superpower, pursuing pragmatic independence grounded in fairness, justice, and sovereign integrity.
Malaysia’s challenge is to walk a razor-thin line between leveraging Chinese inflows for economic recovery and fortifying national security. Blunt restrictions could harm tourism, education, and residency sectors, while laxity could risk critical infrastructure and institutional credibility.
The recent drone arrest and related incidents are stark reminders that not all visitors come for commerce, food, or friendship. Chinese students, tourists, and long-term residents under MM2H bring economic benefit and cultural exchange, but they also amplify the need for vigilance.
As Anwar positions Malaysia as an independent yet engaged player, and Saifuddin steps up security measures, the nation must ensure openness is matched with foresight. Maintaining an open door does not equate to leaving the watchtower empty. Malaysia must remain a welcoming nation that is never naïvely unguarded.
With more than 35 million visitors expected next year, the pressure to maintain peace and security will be enormous.
