Amidst renewed scrutiny of Malaysia’s diplomatic stance, Prime Minister Anwar Ibrahim has reiterated Kuala Lumpur’s adherence to the One China policy by affirming his view that Taiwan is part of China. This declaration has been met with approval from Beijing, while drawing criticism from Taipei. Anwar has emphasized the importance of resolving cross-strait tensions peacefully, a stance reflective of Malaysia’s long-standing foreign policy.
Malaysia’s One China policy has been in place since 1974 when it first established diplomatic ties with the People’s Republic of China. The policy recognizes Beijing as the sole legal government of China and acknowledges its position regarding Taiwan. However, Malaysia has consistently underscored the need for peace and stability in the Taiwan Strait, highlighting this as a key regional concern.
Beijing has responded positively to Anwar’s comments, viewing them as alignment with its own stance on Taiwan. Conversely, Taiwan has rejected Anwar’s remarks, asserting its sovereignty and cautioning that such endorsements of Beijing’s position may exacerbate military tensions. Despite the lack of formal diplomatic relations between Malaysia and Taiwan, both maintain robust economic, cultural, and technological ties through their respective representative offices.
Anwar’s statement may introduce complexities in Malaysia’s relationship with Taiwan, especially concerning Taiwanese businesses and investors who might view it as a geopolitical risk. Nonetheless, Malaysia is expected to maintain its diplomatic balancing act, nurturing its strong ties with China while continuing its economic collaboration with Taiwan.
Trade remains a crucial component of the Malaysia-Taiwan relationship, with bilateral trade reaching US$54.49 billion in 2025. This economic interdependence positions Taiwan as a significant trading partner for Malaysia. Despite diplomatic challenges, both nations have vested economic interests that could foster continued cooperation and mutual benefit.