PM: One China policy no barrier to trade with Taiwan

KUALA LUMPUR: Malaysia's trade and investment ties with Taiwan remain unaffected, Prime Minister Datuk Seri Anwar Ibrahim said.

He said Malaysia was still attracting investors, while trade with Taiwan had risen sharply this year.

He said exports to Taiwan from January to September stood at RM116.58 billion, while imports were RM137.67 billion.

"That means our exports rose 88 per cent and imports 24.2 per cent.

"Total trade is big, at RM254.21 billion," he told the Dewan Rakyat today.

Anwar was responding to Datuk Mohd Suhaimi Abdullah (PN–Langkawi), who asked the government to confirm a report that Taiwan had suspended investment talks with Malaysia, and to explain the implications for bilateral trade and existing investment flows.

Anwar said Malaysia wanted to maintain good economic, trade and investment ties with Taiwan but could not breach the One China policy, which recognises a single China centred in Beijing.

"From a policy standpoint, the government's position has not changed.

"Malaysia's policy since 1974, which the current government continues to uphold, is the One China policy," he said.

He said this was why Malaysia had no diplomatic relations with Taiwan, which had only a trade office and no official mission in the country.

Anwar said there were also no formal negotiations, only an Economic Cooperation Committee.

"When they said this committee meeting would be postponed, the Foreign Ministry and Investment, Trade and Industry Ministry (Miti) took steps to state that the informal talks must continue," he said.

After checking with Miti yesterday, Anwar said, there was no sign that Taiwanese investors had withdrawn or been barred from investing.

"Based on the current situation, the investments and operations of Taiwanese companies remain unaffected, following our checks with Miti yesterday.

"There are new investments and discussions are continuing," he said.

He said Malaysia welcomed investments from Taiwan and would facilitate investment processes, particularly in the semiconductor, artificial intelligence (AI) and chip industries.

He said the 88 per cent increase in exports to Taiwan was among the highest annual growth rates recorded, reflecting the country's focus on the electrical and electronics, semiconductor and AI-related industries.

"We will take all necessary measures to ensure trade and investment ties with Taiwan remain positive without compromising our principles on national sovereignty and independence, a position we have upheld since 1974," he said.

Yesterday, it was reported that Taiwan has confirmed that it suspended bilateral investment negotiations with Malaysia last month following Anwar's remarks describing Taiwan as part of China.

United Daily News, in its report, quoted Taiwan's Foreign Ministry spokesman Hsiao Kuang-wei saying the decision was made in consideration of the island's national sovereignty and economic security, as well as to safeguard the interests of Taiwanese investors.