In a recent statement, Malaysian Prime Minister Anwar Ibrahim has reaffirmed Kuala Lumpur’s adherence to the One China policy by expressing that he views Taiwan as part of China. This stance drew commendation from Beijing and disapproval from Taipei, as Anwar emphasized Malaysia’s commitment to a peaceful solution to tensions in the Taiwan Strait.
The origins of Malaysia’s One China policy trace back to 1974, when diplomatic relations with Beijing were first established. This policy involves recognizing the People’s Republic of China as the only legitimate government of China and acknowledging Beijing’s claim over Taiwan, while simultaneously stressing the importance of maintaining peace and stability across the Taiwan Strait.
Beijing expressed approval of Anwar’s remarks, interpreting them as supportive of its stance on Taiwan. Conversely, Taiwan criticized the comments, reiterating its position as an independent entity separate from China. Taipei also cautioned that endorsing Beijing’s viewpoint could exacerbate concerns over military tensions.
While Malaysia lacks formal diplomatic ties with Taiwan, both regions share robust economic, cultural, and technological connections, facilitated through representative offices. Anwar’s comments might strain Malaysia’s relations with Taiwan, especially regarding Taiwanese business interests and investors wary of geopolitical instability. Nonetheless, Malaysia is expected to continue navigating its strategic relationship with China alongside its economic engagements with Taiwan.
Despite differing diplomatic perspectives, the economic relationship between Malaysia and Taiwan remains significant. In 2025, trade between the two amounted to US$54.49 billion, positioning Taiwan as one of Malaysia’s key trading partners. These substantial economic interests could encourage ongoing collaboration between the nations, despite the prevailing diplomatic challenges.