Malaysian Prime Minister Anwar Ibrahim has reignited focus on the nation’s adherence to the One China policy by asserting that Taiwan is part of China. This declaration received positive feedback from Beijing and disapproval from Taipei, while Anwar emphasized Malaysia’s commitment to a peaceful resolution of tensions across the Taiwan Strait.
The foundation of Malaysia’s One China policy was laid in 1974 when Kuala Lumpur established diplomatic ties with Beijing. According to this policy, Malaysia acknowledges the People’s Republic of China as the sole legitimate government and recognizes Beijing’s stance on Taiwan. However, Malaysia also underscores the importance of maintaining peace and stability in the Taiwan Strait.
Beijing expressed approval of Anwar’s statement, noting that it aligns with their perspective on Taiwan. Conversely, Taiwan repudiated the remarks, insisting that it is not a part of China and cautioning that such statements might exacerbate concerns regarding military pressures. While Malaysia does not maintain formal diplomatic relations with Taiwan, it sustains substantial economic, cultural, and technological interactions through representative offices.
Anwar’s comments could potentially strain Malaysia’s relations with Taiwan, particularly impacting Taiwanese businesses and investors wary of geopolitical risks. Nonetheless, Malaysia is expected to continue its strategy of balancing a robust relationship with China alongside its economic engagements with Taiwan.
Trade between Malaysia and Taiwan amounted to US$54.49 billion in 2025, underscoring Taiwan’s significance as one of Malaysia’s key trading partners. Despite the diplomatic discrepancies, the substantial economic interests shared by both sides are likely to encourage ongoing collaboration.