Anwar confirms economic talks with Taiwan postponed, says trade ties remain strong despite friction over One-China remarks

Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim answers questions during Minister’s Question Time at Parliament in Kuala Lumpur, November 12, 2026. — Bernama pic

By Syed Jaymal Zahiid

First Published: Thursday, 12 Nov 2026 2:52 PM MYT

KUALA LUMPUR, Nov 12 — Prime Minister Datuk Seri Anwar Ibrahim told Parliament today that investments and trade from Taiwan remain unaffected despite recent diplomatic friction over Malaysia’s adherence to the One-China policy. 

Speaking during PM Question Time, Anwar said checks with the Ministry of Investment, Trade and Industry (MITI) confirmed that existing operations by Taiwanese companies are running smoothly and new investments continue to flow into the country, particularly in high-value sectors such as semiconductors, artificial intelligence (AI), and microchips.

“As of now, is it affected? No. We continue to receive investors, and up to this year, imports and exports have surged significantly,” he said.

Anwar cited trade figures from January to September 2026 to suggest bilateral economic ties remain strong, noting that Malaysia’s exports to Taiwan jumped 88 per cent to RM116.58 billion, while imports rose 24.2 per cent to RM137.67 billion, bringing total trade for the period to RM254.21 billion.

Taiwanese investments in states like Kedah alone have reached RM813.2 million, and that ongoing negotiations for new projects are proceeding without disruption, the Tambun MP claimed.

But Anwar acknowledged that bilateral talks under the Economic Cooperation Committee scheduled for last month “had been postponed”, stating that Putrajaya has reached out to resume meetings.

Malaysia has no diplomatic ties with Taipei because of its support for the One-China Policy though it maintains robust trade and investment links with the self-ruled island. Taiwan was Malaysia’s fourth largest trading partner in 2025, with trade totaling US$54.49 billion (RM222.48 billion).

Anwar drew criticism from Taipei over a comment he made during an August interview with Al-Jazeera, in which he reiterated Malaysia’s commitment to the One-China policy since 1974 and described Beijing-Taipei tensions as an internal matter.

Taipei Times reported that Taiwan’s Ministry of Foreign Affairs (MOFA) had strongly condemned Anwar’s comments, accusing him of implying that Taiwan is a “separatist Chinese province” and openly rationalising a potential Chinese invasion, a charge Anwar denied today.

Local newspapers then reported Taipei confirming it had shelved bilateral economic talks with Malaysia that was originally scheduled for late October, ostensibly to protest Anwar’s remarks.

In Parliament today, Anwar acknowledged that his comments may have displeased certain quarters in Taipei, but stressed that Malaysia draws a clear distinction between diplomatic recognition and economic engagement.

“Taiwan is an important trading partner, and our economic, trade, and investment cooperation is good,” he said.

“We welcome trade and investment delegations and facilitate investment processes, especially in semiconductors, AI, and chips, while maintaining our recognition of Beijing under the One-China policy.”