In 1974, Malaysia normalized diplomatic relations with China
Confrontation policy with Indonesia ended in 1966 and in 1977 , at the bilateral talks during ASEAN ' s meeting, the Philippines agreed to end the dispute over Sabah in exchange for Malaysia ' s implicit agreement not to help the Moro rebels with arms.
In March 1977, Malaysia and Thailand signed a formal agreement to hold joint operations to suppress the communist insurgencies in the border region.
In 1982, Malaysia signed the maritime treaty with Indonesia relating to the parts of South China Sea separating peninsular Malaysia from Sabah and Sarawak by which Malaysia recognized Indonesia 's sovereignty and exclusive fishing rights in exchange for Malaysia 's fishing rights, right of sea and air passage etc.