Malaysian Prime Minister Anwar Ibrahim has sparked discussion by reaffirming Kuala Lumpur’s adherence to the One China policy, emphasizing that he views Taiwan as part of China. This statement has garnered approval from Beijing but criticism from Taipei. Despite the controversy, Anwar has reiterated Malaysia’s stance on supporting a peaceful resolution to tensions across the Taiwan Strait.
Malaysia’s commitment to the One China policy can be traced back to 1974 when it established diplomatic relations with Beijing. Under this policy, Malaysia recognizes the People’s Republic of China as the only legitimate government and acknowledges Beijing’s claim over Taiwan. However, it also emphasizes the importance of peace and stability in the Taiwan Strait, maintaining a balanced diplomatic position.
Beijing has positively received Anwar’s comments, considering them aligned with its stance on Taiwan. Conversely, Taiwan has rejected the Malaysian leader’s remarks, asserting its sovereignty and cautioning that such statements could exacerbate concerns over military tensions. Although Malaysia lacks formal diplomatic ties with Taiwan, both maintain robust economic, cultural, and technological connections through representative offices.
Anwar’s remarks may impact Malaysia’s relations with Taiwan, particularly affecting Taiwanese businesses and investors who are wary of geopolitical risks. Despite this, Malaysia is expected to continue managing its strong ties with China alongside its economic engagements with Taiwan. In 2025, trade between Malaysia and Taiwan reached a significant US$54.49 billion, underscoring Taiwan’s role as a major trading partner for Malaysia.
While diplomatic differences persist, the substantial economic interests shared by Malaysia and Taiwan are likely to encourage ongoing cooperation. Both countries have a vested interest in maintaining their economic relationship, balancing diplomatic nuances with practical economic considerations.