Malaysian Prime Minister Anwar Ibrahim has reignited focus on Kuala Lumpur’s enduring One China policy by affirming his view that Taiwan is a part of China. This statement has garnered approval from Beijing and disapproval from Taipei. Despite the differing reactions, Anwar emphasized Malaysia’s ongoing support for peaceful dialogue and resolution regarding tensions across the Taiwan Strait.
The roots of Malaysia’s One China policy can be traced back to 1974, when diplomatic ties were officially formed with Beijing. This policy involves Malaysia’s recognition of the People’s Republic of China as the sole legitimate government of China and acknowledges Beijing’s stance on Taiwan. However, Malaysia also underscores the necessity of maintaining peace and stability in the Taiwan Strait region.
Beijing has expressed its approval of Anwar’s remarks, noting that they align with its own perspective on Taiwan. In contrast, Taiwan has rejected the Prime Minister’s statement, asserting its stance of not being part of China and cautioning that endorsements of Beijing’s viewpoint could heighten concerns regarding military pressure.
Although Malaysia lacks formal diplomatic ties with Taiwan, both maintain robust economic, cultural, and technological connections through representative offices. Anwar’s comments could potentially strain Malaysia’s relationship with Taiwan, especially among Taiwanese businesses and investors wary of geopolitical risks. Nevertheless, Malaysia is expected to continue balancing its strong relationship with China alongside its significant economic engagements with Taiwan.
Trade figures underscore the importance of this relationship, with Malaysia and Taiwan’s trade volume hitting US$54.49 billion in 2025, establishing Taiwan as one of Malaysia’s key trading partners. Despite differing diplomatic stances, the substantial economic interests shared by both parties may encourage ongoing cooperation and dialogue.