Malaysian Prime Minister Anwar Ibrahim has sparked renewed focus on the country’s One China policy by affirming his view that Taiwan is part of China. This statement has garnered approval from Beijing but has drawn criticism from Taipei. Despite these remarks, Anwar emphasized Malaysia’s commitment to a peaceful resolution of the ongoing cross-strait tensions.
The One China policy, which Malaysia adopted in 1974 when it established diplomatic ties with Beijing, recognizes the People’s Republic of China as the sole legitimate government. This policy acknowledges Beijing’s stance on Taiwan while underscoring the importance of peace and stability across the Taiwan Strait. Beijing has welcomed Anwar’s comments, seeing them as aligned with its position on Taiwan. However, Taiwan has rejected these remarks, reiterating its stance of not being part of China and cautioning that such statements might exacerbate concerns about military pressure.
Although Malaysia does not have formal diplomatic relations with Taiwan, both maintain robust economic, cultural, and technological connections through representative offices. Anwar’s comments could potentially impact Malaysia’s relations with Taiwan, especially among Taiwanese businesses and investors who might be wary of geopolitical risks. Nonetheless, Malaysia is expected to continue navigating its strong relationship with China while maintaining its economic engagements with Taiwan.
In 2025, trade between Malaysia and Taiwan reached a significant US$54.49 billion, establishing Taiwan as one of Malaysia’s key trading partners. Despite the diplomatic differences, both nations have substantial economic interests that could drive ongoing collaboration. The balance between maintaining a strategic alliance with China and fostering economic ties with Taiwan remains crucial for Malaysia’s foreign policy.