Malaysian leader sticks by ‘one China’ policy

Malaysian Prime Minister Anwar Ibrahim yesterday reaffirmed Malaysia’s commitment to its “one China” policy and played down tensions with Taiwan, days after Taipei suspended investment negotiations following his comments on China’s potential use of force against the nation.

Taiwan is an important trading partner for Malaysia, with close cooperation spanning trade, investment and the broader economy, Anwar said.

His government wants those commercial ties to continue, he said in parliament.

Malaysian Prime Minister Anwar Ibrahim delivers a speech during the groundbreaking ceremony for Malaysia’s first Google data center in Kuala Lumpur on Oct. 1, 2024.

Photo: AFP

Anwar drew criticism from Taipei in August after saying in an interview with al Jazeera that he would not condemn China’s potential use of force to bring Taiwan under its control.

“I see Taiwan as part of China, period,” he said at the time.

On Tuesday, Ministry of Foreign Affairs spokesman Hsiao Kuang-wei (蕭光偉) said that Taiwan had temporarily suspended bilateral investment negotiations “to protect the interests of Taiwanese investors.”

Taipei will continue communicating with the Southeast Asian nation, and hopes that the Malaysian government is to help create conditions for talks to resume.

Anwar said Malaysia’s trade and economic ties with Taiwan have not been affected by the controversy, describing Taipei’s response as “merely typical political statements.”

“We adhere to the ‘one China’ policy and manage our relations to ensure that investments are not negatively impacted,” he said.

Malaysia would regard any Chinese decision to invade Taiwan as a domestic matter and would not interfere, Anwar said.

Malaysia has sought to position itself as a neutral and pragmatic player amid intensifying rivalry between China and the US.

Meanwhile, Taiwanese companies including Foxconn Group and ASE Technology Holding Co have invested in Malaysia’s electronics and semiconductor industries.

Trade between Malaysia and Taiwan has surged as their roles in the artificial intelligence (AI) supply chain become increasingly intertwined.

Bilateral trade hit a record of more than US$9 billion last month, doubling from a year earlier, Ministry of Finance figures showed.

Malaysia’s exports to Taiwan jumped to US$4.2 billion last month, from US$1.6 billion a year earlier.

“I would like to emphasize that, for us, trade and investment relations remain unaffected,” Anwar said. “In fact, we welcome investments from Taiwan and are streamlining the investment process — particularly in sectors such as semiconductors, AI and chips, where Taiwanese investment is significant.”