Malaysian Prime Minister Anwar Ibrahim has brought renewed focus to Kuala Lumpur’s One China policy by affirming that he views Taiwan as a part of China. This statement has garnered approval from Beijing while drawing criticism from Taipei. Anwar emphasized that Malaysia remains committed to advocating for a peaceful approach to easing cross-strait tensions.
Since 1974, when Malaysia initiated diplomatic ties with Beijing, the nation has adhered to the One China policy. This policy involves recognizing the People’s Republic of China as the sole legitimate government of China and acknowledging 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 aligning with its position on Taiwan. On the other hand, Taiwan has dismissed these remarks, asserting its stance as a separate entity from China and expressing concerns that such statements could exacerbate tensions related to military threats. Despite not having formal diplomatic relations, Malaysia and Taiwan maintain robust economic, cultural, and technological exchanges through their respective representative offices.
Anwar’s recent statements may potentially strain Malaysia’s interactions with Taiwan, particularly among Taiwanese businesses and investors wary of geopolitical risks. Nevertheless, Malaysia is expected to continue navigating its strong diplomatic relationship with China alongside its substantial economic engagement with Taiwan.
Trade between Malaysia and Taiwan was recorded at US$54.49 billion in 2025, underscoring Taiwan’s role as one of Malaysia’s key trading partners. Despite their diplomatic differences, both Malaysia and Taiwan have significant economic interests that are likely to foster ongoing collaboration.