In a recent statement, Malaysian Prime Minister Anwar Ibrahim reaffirmed Malaysia’s adherence to the One China policy by affirming his view that Taiwan is part of China. This declaration has been met with approval from Beijing and criticism from Taipei, as Anwar emphasized Malaysia’s commitment to a peaceful resolution regarding the tensions across the Taiwan Strait.
The roots of Malaysia’s One China policy can be traced back to 1974 when Kuala Lumpur first established diplomatic relations with Beijing. This policy entails recognizing the People’s Republic of China as the sole legitimate government of China and acknowledging Beijing’s stance on Taiwan. Despite this, Malaysia has consistently emphasized the importance of maintaining peace and stability across the Taiwan Strait.
Beijing has expressed support for Anwar’s comments, viewing them as aligned with its position on Taiwan. On the other hand, Taiwan has rejected these remarks, asserting its stance as an independent entity and cautioning that such statements could heighten concerns about China’s military pressure on the island.
While Malaysia does not maintain formal diplomatic relations with Taiwan, both sides have developed significant economic, cultural, and technological connections through representative offices. Anwar’s comments might strain Malaysia’s relations with Taiwan, especially among Taiwanese businesses and investors who are wary of geopolitical tensions. Nonetheless, Malaysia is expected to continue balancing its strong ties with China alongside its economic interactions with Taiwan.
The economic relationship between Malaysia and Taiwan is substantial, with bilateral trade reaching approximately US$54.49 billion in 2025, positioning Taiwan as a major trading partner for Malaysia. Despite their diplomatic differences, the significant economic interests shared by both parties could serve as a foundation for ongoing cooperation and engagement.