In a recent statement, Malaysian Prime Minister Anwar Ibrahim has emphasized Kuala Lumpur’s adherence to the One China policy by affirming his view that Taiwan is part of China. This declaration has garnered approval from Beijing but faced disapproval from Taipei. Anwar has reiterated Malaysia’s support for the peaceful settlement of tensions between China and Taiwan.
The roots of Malaysia’s One China policy can be traced back to 1974, when the country formally established diplomatic relations with the People’s Republic of China. The policy underlines Malaysia’s recognition of the People’s Republic of China as the sole legitimate government of China and acknowledges Beijing’s stance on Taiwan’s status. Malaysia has consistently highlighted the need for peace and stability in the Taiwan Strait as a crucial component of its diplomatic approach.
China expressed satisfaction with Anwar’s remarks, viewing them as aligned with its perspective on Taiwan. In contrast, Taiwan dismissed the comments, insisting on its status as an independent entity and cautioning that such statements could exacerbate concerns about military tensions. While Malaysia lacks formal diplomatic ties with Taiwan, both maintain substantial economic, cultural, and technological connections through their respective representative offices.
Anwar’s comments have the potential to influence Malaysia’s relationship with Taiwan, especially among Taiwanese businesses and investors wary of geopolitical uncertainties. Despite this, Malaysia is expected to continue managing its robust ties with China alongside its economic engagements with Taiwan. The intricate balance between these relationships is significant, given the substantial trade between Malaysia and Taiwan, which amounted to US$54.49 billion in 2025, underscoring Taiwan’s role as one of Malaysia’s key trading partners.
Although diplomatic differences exist, the economic stakes for both Malaysia and Taiwan suggest a mutual interest in maintaining cooperative relations. The significant trade volume and shared economic interests could serve as a foundation for ongoing collaboration, even as geopolitical dynamics evolve in the region.