In September 1938 the 2nd Battalion was moved from Colchester to the British Concession of the International Settlement in Shanghai. In August 1940 the battalion was posted from China to Malaya where it was attached to 11th Indian Infantry Division based in North West Malaya. In December 1941 the Japanese Army invaded Malaya after landing in southern Thailand. The 2nd East Surreys suffered tremendous casualties during the defence and retreat from this part of Malaya. The battalion was amalgamated with the 1st Battalion, Leicestershire Regiment (in 1946 re-titled Royal Leicestershire Regiment) to form the British Battalion (Malaya 1941) on 19 December 1941. This unit fought gallantly throughout the rest of the short campaign until the surrender of the British Army at Singapore in February 1942.