Malaysian Prime Minister Anwar Ibrahim has reignited discussions around Kuala Lumpur’s adherence to the One China policy by stating that he views Taiwan as part of China. This statement has garnered approval from Beijing while drawing criticism from Taipei. Anwar emphasized that Malaysia remains committed to seeking a peaceful resolution to the ongoing tensions across the Taiwan Strait.
Malaysia’s One China policy has been in place since 1974, when diplomatic ties with Beijing were formalized. This policy acknowledges the People’s Republic of China as the only legitimate government of China and aligns with Beijing’s stance on Taiwan, while still advocating for peace and stability in the region. Anwar’s recent remarks reflect this longstanding policy, a point that Beijing has welcomed. Conversely, Taiwan has rejected these comments, reiterating that it does not consider itself part of China and cautioning that such statements could heighten concerns over military pressure from Beijing.
While Malaysia does not have formal diplomatic relations with Taiwan, the two maintain robust economic, cultural, and technological exchanges through their respective representative offices. Anwar’s comments could potentially strain Malaysia’s relations with Taiwan, particularly among Taiwanese businesses and investors wary of geopolitical tensions. Nonetheless, Malaysia is expected to continue its delicate balancing act between its strong diplomatic ties with China and its economic engagements with Taiwan.
Trade figures underscore the significance of this economic relationship, with bilateral trade between Malaysia and Taiwan amounting to US$54.49 billion in 2025, positioning Taiwan as one of Malaysia’s key trading partners. Despite the diplomatic differences, the substantial economic interests shared by both sides could serve as a catalyst for ongoing cooperation.
