China is trying to establish stronger logistical lines with its natural resources (Africa for example). Unsurprisingly, Malaysia is an important position as it has access to the South China Sea and the Indian Ocean. With important Han populations in Singapore and Malaysia, China is protecting its logistical node.
India has been increasing its involvement in Burma, which has a common border with China.
Both countries are fighting for the hegemony over Asia. The United States stand in the middle, as its corporations expended their business in both countries.
If China firmly controls the Malayan Peninsula, they inherently hold the logistics of Indonesia, Vietnam and the Philippines. India is at a disadvantage, as it is slowly becoming encircled.