One China policy: Understanding Malaysia’s position on Beijing and Taipei

In August 2026, Malaysian Prime Minister Anwar Ibrahim sparked renewed interest in Malaysia's One China policy and its complex relationship with both Beijing and Taipei. During an interview with Al Jazeera, Anwar stated, "I see Taiwan as part of China, period," when questioned about Beijing's stance on the use of military force to reunify the two regions.

Anwar drew a parallel between Beijing's approach and Malaysia's historical stance, emphasizing that should a Malaysian province seek to secede, he would employ force to maintain national unity.

While Beijing welcomed Anwar's remarks, Taipei criticized them vehemently. Taipei maintains that Taiwan is not a province of China and expressed concern over the rhetoric, fearing it might legitimize the use of military coercion. Despite the strained relations, both nations maintain strong unofficial economic, cultural, and technological ties through various organizations.

One such example is the Malaysian Friendship and Trade Centre, Taipei (MFTC), established in 1987, which serves as Malaysia's representative office in Taipei, alongside Taiwan's Taipei Economic and Cultural Office in Kuala Lumpur.

Analysts suggest that Anwar's statements may dampen Taiwanese investor confidence due to perceived leaning towards Beijing, particularly as technology companies prioritize geopolitical predictability. Meanwhile, China Times published a column asserting that Taipei is more likely to pursue its "New Southbound Policy," aiming to diversify its economic footprint beyond mainland China.

In 2025, trade between Malaysia and Taiwan reached US$54.49 billion, a significant increase from US$38.63 billion in 2024, according to a ministry of foreign affairs' report. Taiwan remains Malaysia's fourth-largest trading partner, contributing 7.6 percent of Malaysia's total trade.