Malaysian Prime Minister Anwar Ibrahim has recently reiterated Malaysia’s adherence to the One China policy, explicitly stating that he views Taiwan as a part of China. This stance has been met with approval from Beijing and disapproval from Taipei. Anwar, however, emphasized Malaysia’s commitment to promoting a peaceful resolution to the ongoing tensions across the Taiwan Strait.
The One China policy, which has been a cornerstone of Malaysia’s diplomatic stance since 1974, acknowledges the People’s Republic of China as the only legitimate government of China and accepts Beijing’s stance on Taiwan. Despite this diplomatic alignment, Malaysia underscores the importance of maintaining peace and stability in the region.
China has welcomed Anwar’s recent affirmation, interpreting it as alignment with its own perspective on Taiwan. Conversely, Taiwan has rejected these remarks, reiterating its stance of not being part of China and cautioning that such endorsements could exacerbate military pressures.
While Malaysia lacks formal diplomatic ties with Taiwan, the two maintain significant economic, cultural, and technological exchanges through their respective representative offices. Anwar’s comments might introduce some strain in Malaysia-Taiwan relations, particularly among Taiwanese investors and businesses wary of geopolitical uncertainties. Nonetheless, Malaysia is expected to continue its delicate balancing act, maintaining strong bilateral relations with China while also engaging economically with Taiwan.
Trade remains a vital link between Malaysia and Taiwan, with bilateral trade reaching US$54.49 billion in 2025, positioning Taiwan as one of Malaysia’s significant trading partners. Despite the diplomatic challenges, the substantial economic interests shared by both sides are likely to encourage ongoing cooperation and engagement.