Unfazed by Taiwan suspending investment talks, Anwar says numbers going up

PARLIAMENT | Prime Minister Anwar Ibrahim has downplayed Taiwan’s decision to suspend bilateral investment talks with Malaysia, saying there have been no indications that investors are withdrawing or cancelling plans to invest in the country.

Taiwan, Malaysia’s fourth-largest trading partner, suspended bilateral investment talks last month in response to Anwar’s reaffirmation of the “One China” policy.

Taiwan Foreign Ministry spokesperson Hsiao Kuang-wei said the move was to protect Taiwanese investors amid concerns that Anwar’s remarks had undermined Taiwan’s sovereignty and economic security, as well as business confidence in Malaysia.

However, the premier said today that Malaysia’s exports to Taiwan rose 88 percent to RM116.58 billion in the first nine months of 2026, while imports increased 24.2 percent to RM137.67 billion.

This brought total bilateral trade to RM254.21 billion for the January-September period.

“Taiwan is an important trading partner. Our economic, trade, and investment cooperation is strong, and we wish to maintain these positive economic and trade relations.

“However, we cannot compromise on the ‘One China’ policy; our recognition is of a single China, with its centre in Beijing,” he told the Dewan Rakyat today.

‘Taiwan is part of China, period’

During an interview with Al Jazeera in August, Anwar said: “I see Taiwan as part of China, period,” while reiterating Malaysia’s adherence to the One China policy.

When asked whether he would condemn China’s assertion that it reserved the right to use force if reunification could not be achieved peacefully, Anwar drew a comparison with Malaysia, saying he would also seek to prevent a state from separating if it decided to do so.

Taipei subsequently condemned his remarks, accusing Anwar of treating Taiwan as a separatist part of China and legitimising Beijing’s threat to use force against the island.

Anwar later defended his position, saying Malaysia’s One China policy dated back to the administration of the country’s second prime minister, Abdul Razak Hussein, while stressing that any resolution to the Taiwan issue should be peaceful.

Why rock the boat?

During supplementary questions, opposition leader Hamzah Zainudin (PN-Larut) questioned why Anwar had to “rock the boat” with his remarks about China possibly using military force against Taiwan.

He said the prime minister’s comments had attracted widespread media attention and provoked a strong reaction from Taipei.

In response, Anwar asserted that he rejected the suggestion that he endorsed a Chinese military attack on Taiwan.

“Did I say I agreed that China should attack Taiwan? I said no. I said we support the One China policy. Secondly, we believe there should be an amicable resolution through peaceful efforts,” he said.

He added that whether China decided to invade Taiwan was a matter of its domestic policy, in which Malaysia would not interfere.

“Understand the language properly. Listen again,” the premier added.

Speaking at a press conference later, Hamzah criticised Anwar’s response in the Dewan Rakyat, saying the prime minister should have made it clear that Malaysia would not involve itself in conflicts between other countries.

“If any of our MPs were given a similar question, I want to tell the Tambun MP that we would answer: ‘Malaysia has a foreign policy, and we will never get involved in this kind of conflict.’

“That is what we mean when we asked ‘why must you rock the boat’,” he said.

Hamzah said Malaysia needed to exercise caution in its response to the Taiwan issue, given that the island is the country's fourth-largest trading partner.

He stressed that his criticism was not an endorsement of Taiwan’s position in its dispute with China, but stemmed from concerns over Malaysia’s trade and diplomatic interests.

He also maintained that Malaysia should preserve its neutral foreign policy rather than risk being drawn into tensions between the two sides.

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