The longstanding One China policy of Malaysia has come under renewed focus following remarks by Prime Minister Anwar Ibrahim, who recently affirmed his view of Taiwan as part of China. Anwar’s comments have garnered approval from Beijing but sparked criticism from Taipei. Despite the controversy, he emphasized Malaysia’s ongoing support for a peaceful approach to resolving tensions between China and Taiwan.
Malaysia’s adherence to the One China policy dates back to 1974, when it established diplomatic ties with Beijing. This policy involves recognizing the People’s Republic of China as the sole legal government of China and acknowledging Beijing’s stance on Taiwan. Nevertheless, Malaysia has consistently maintained that peace and stability across the Taiwan Strait are vital.
Beijing responded positively to Anwar’s statement, interpreting it as an endorsement of its position on Taiwan. Meanwhile, Taiwanese officials rejected the assertion, reiterating that Taiwan is not part of China and cautioning that such statements could exacerbate concerns over military threats from Beijing.
Despite the lack of formal diplomatic relations, Malaysia and Taiwan have developed significant economic, cultural, and technological connections, facilitated by representative offices on both sides. Anwar’s remarks might introduce complications in Malaysia’s relations with Taiwan, especially for Taiwanese businesses and investors wary of geopolitical tensions. However, Malaysia is expected to continue balancing its close ties with China while maintaining robust economic engagement with Taiwan.
In 2025, the trade volume between Malaysia and Taiwan reached an impressive US$54.49 billion, underscoring Taiwan’s role as one of Malaysia’s key trading partners. Despite diplomatic differences, mutual economic interests are likely to encourage both nations to pursue ongoing cooperation.