The Maritime Crescent

Issue 6

Jul 16, 2025

by Nabil Haskanbancha, in Bangkok

Rising healthcare expenditures put immense financial pressure on many households, especially those seeking treatment in private hospitals. Across ASEAN countries, we can observe different models designed to address this issue. One instance is Malaysia, which aims to reform how patients cover private hospital costs, by shifting from an “à la carte” system to a more standardized model. Will this help people save more money in the long-run–or is it another way to make easy profit from minor visits?

Meanwhile, in Brunei, a country rich in marine resources, there are increased efforts to stimulate economic growth through the Blue Economy. In Indonesia, President Prabowo continues to strengthen military alliances with France, Russia, and China. Analysts argue whether this strategy of non-alignment could increase Indonesia’s global influence–or whether it risks projecting a foreign policy that appears less assertive. As our correspondent notes, “A strategy that tries to secure everything ultimately secures nothing.”

Indonesia 🇮🇩

Indonesia's Gilded Road to Strategic Paralysis

by Hree Putri Samudra, in Jakarta

The spectacle of Indonesian troops on the Champs-Élysées for Bastille Day was a powerful display of diplomacy. Celebrated as the zenith of a strategic partnership, Jakarta's deepening defense ties with Paris are portrayed as a masterstroke of non-alignment, a way for Indonesia to modernize its military while skillfully navigating the U.S.-China rivalry.

This narrative masks a critical truth– the policy is less of a consensus-driven national strategy and more of a legacy project fueled by President Prabowo's personal vision. The procurement of 42 Rafale fighters, lauded as a historic first during his era as defense minister, underscores this ambition at the highest levels of the Indonesian executive. Yet, the rush to acquire hardware from every corner of the globe– from France, the U.S., and Russia– is creating what experts rightly call a "United Nations" of military assets.

This exposes a fundamental flaw beyond logistics. Indonesia is acquiring platforms before establishing a coherent warfighting doctrine. True military power flows from an integrated operational concept, not a collection of disparate, impressive technologies. This doctrinal void creates a bigger irony: Jakarta's ambition for technology transfer and co-development rings hollow. As one defense analyst, Khairul Fahmi, noted, Indonesia seeks " more equal and strategic relationships." But without a clear doctrine on how to fight an integrated war, any technology transferred is merely for assembly, not innovation. It only builds factories, not self-sufficiency.

If this is Jakarta’s deliberate strategy to balance East and West, it must calculate the immense diplomatic cost. True balancing requires more than purchasing hardware from all sides; it demands a reputation for predictability and immense diplomatic capital. Yet, Jakarta is spending this capital recklessly. While deepening a partnership with France, a NATO power still smarting from the AUKUS pact, President Prabowo simultaneously praises Russia and China in St. Petersburg, claiming they "never had double standards." This does not project balance. It projects incoherence, eroding trust in Washington, Brussels, and even Beijing, especially amid reports of alleged Chinese disinformation campaigns targeting the deals Indonesia celebrates.

Ultimately, a strategy that tries to secure everything secures nothing. Jakarta is not charting a path to strategic sovereignty. It is paving a gilded road to strategic paralysis, where its diplomacy becomes a hostage to contradictory promises, and its military a museum of incompatible assets it cannot effectively wield.

Hree serves as Project Associate for Asia and the Pacific at the Global Network of Women Peacebuilders (GNWP), where she leads multi-country initiatives integrating Women, Peace and Security (WPS), and Youth, Peace and Security (YPS) frameworks into security policies across ASEAN and South Asia. She is also a Non-Resident Fellow at the University of Glasgow’s Atomic Anxiety in the New Nuclear Age program. Previously, she served as Chair of the Humanitarian Disarmament and Inclusive Governance Working Group at the British American Security Information Council (BASIC), advocating for more accountable and inclusive nuclear policy frameworks.

Malaysia 🇲🇾

Malaysia to Introduce New Payment Scheme for Private Healthcare – But Can it Work?

by Edrina Lisa Ozaidi, in WP Kuala Lumpur

Malaysia’s healthcare system is undergoing reform that will affect how individuals pay for private medical services. To curb escalating healthcare costs, the government plans to introduce the Diagnosis-Related Group (DRG) payment model in private hospitals. But what is the DRG payment model, and to what extent does it have an impact on the economy and social setting?

Currently, private hospitals operate on a “fee-for-service” basis. This means that every test, every bandage, every minute of the doctor’s time is billed individually to the patient. Under the DRG system, patients would pay a fixed amount based on their diagnosis, required procedures, and expected hospitalization costs, where applicable. Health Minister Dzulkefly Ahmad confirmed that the first phase will apply to minor medical cases and will gradually extend to more complex treatments.

The ultimate goal of this plan is to shift from a “pay-for-service” model to a “pay-for-outcome” approach. The transition is designed to enhance efficiency, reduce waste, and, above all, prioritize quality care over profit-driven practices. This reflects the Malaysian government's commitment to create a more value-based healthcare system—one that effectively addresses medical inflation.

However, can such a reform be implemented without consequences? While the idea may sound bright on paper, the implementation of such a complex system is a Herculean task. Can Malaysia’s private hospitals, which come with diverse services and pricing structures, be completely standardized? Once the system is implemented, will private hospitals find ways to overcharge diagnoses to receive higher payments, or perhaps avoid complex, lower-profit cases altogether? Experts have warned that implementation requires robust data systems and medical coding with high accuracy, along with proper training—challenges that some argue Malaysia may not yet be prepared to tackle.

At its core, the DRG model promises better transparency in private healthcare. This could lead to better access and affordability, as patients would be able to anticipate treatment costs without compromising the quality of the care they receive. However, the problem lies in the model’s execution. While the reform is well-intentioned, it raises concerns: could it introduce new hurdles to an already complex problem in both the public and private healthcare landscape? Ultimately, the success of this reform will depend on time, consistent evaluation, and effective oversight. Whether it delivers the long-awaited improvements in health outcomes remains to be seen.

Edrina is a communications professional with a background in international relations. She holds a degree from the University of Nottingham Malaysia and has worked across public relations and social media for organizations in the development, education, and corporate sectors. Her work focuses on crafting narratives around regional affairs and strengthening media engagement across Southeast Asia.

Brunei Darussalam 🇧🇳

Strengthening Brunei’s Blue Economy Through Regional Insights

by Syimah Johari, in Bandar Seri Begawan

Brunei recently stepped up marine conservation efforts in line with the ASEAN Blue Economy Vision Framework, including deploying artificial reefs, restoring endangered seaweed species, and using AI-driven tools to monitor reef health and fish stocks. In conjunction with World Ocean 2025, these initiatives highlight Brunei’s growing commitment to sustainable marine development and its economic potential within ASEAN. By observing how other countries contribute to the blue economy, Brunei can gain useful insights to shape its own path forward.

Brunei’s waters face growing pressure from illegal and excessive fishing, leading to declining fish stocks. The Department of Fisheries has already invested in surveillance systems and monitoring protocols to manage its coastal waters. But recent incidents have underscored the importance of ongoing efforts to ensure the long-term health and productivity of the country’s fisheries. Many have argued that one way to further strengthen marine preservation could be drawing lessons from Indonesia’s Wakatobi, where local communities work together to protect the ocean while supporting their livelihoods. Although Wakatobi is a populated area with people living by the sea, Brunei’s fishing happens farther out along the Brunei Bay and coastlines near the South China Sea. Still, nearby coastal communities, such as those in Muara or Temburong, could play a role in environmental monitoring and reporting irregular activities. These efforts would complement existing preservation initiatives, enhance monitoring, and foster shared responsibility. Over time, protecting reef health and fish stocks can directly benefit the fishing sector itself.

Some may wonder whether Brunei’s smaller size and centralized governance make such initiatives challenging. However, this could prove to be an advantage– Brunei can focus on smaller and context-specific initiatives that are tailored to its own needs. This flexibility allows for quick learning and adaptation, helping the country find effective solutions that larger nations might struggle to implement swiftly.

Another challenge is marine pollution, where Brunei can draw lessons from other ASEAN countries. Thailand, for example, developed the SCGC-DMCR Litter Trap Gen 3, a floating litter trap that uses sensors and AI to detect and collect marine debris. Perhaps, Brunei could explore collaborations with companies like SCG Chemicals, which developed the Thai device, or other private or research partners to develop similar tech-based solutions. Although adopting such a system in Brunei may require careful consideration of scale and long-term sustainability, the underlying concept is still valuable. Brunei could explore its own version by working with local or regional partners, possibly even private companies, to come up with practical solutions that fit its own needs.

Brunei’s recent efforts are contributing to the ASEAN Blue Economy Vision through important marine conservation work. While these efforts are a step in the right direction, there is still room for improvement, especially by learning from initiatives led by other countries in the region, like Indonesia and Thailand. By adopting best practices and adjusting for its unique context, Brunei can continue to strengthen its marine protection strategies.

Syimah is a graduate of King’s College London with a BA in International Relations. With a strong focus on diplomacy, regional cooperation, and development policy, she is passionate about contributing to meaningful change through public service. Currently, she is involved in poverty alleviation work through a local NGO.

Editorial Deadline 13/07/2025 11:59 PM (UTC +8)