Malaysia and the Taiwan Remarks: Between China and the West

In an interview with Al Jazeera aired earlier this month, Malaysian Prime Minister Anwar Ibrahim said he views Taiwan as “part of China, full stop,” a position he described as “accepted by all.” Asked whether he would condemn Beijing if it resorted to force should peaceful “reunification” fail, Anwar replied that if a Malaysian state sought to secede, he would use force to “defend the sanctity and unity” of the country.

His remarks were immediately praised by Chinese authorities. A Chinese Foreign Ministry spokesperson stressed that Taiwan is “an inalienable part of China's territory” and that “China must and will be reunified.”

Taiwan's administration, meanwhile, condemned the remarks, warning that Anwar's “one-sided support for China” could hurt Taiwanese business confidence in investing in Malaysia. Taiwan, the world's largest chipmaker, is a major investor in Malaysia, especially in the country's crucial semiconductor sector.

In subsequent remarks to local media, Anwar appeared to soften his stance, emphasizing that Malaysia respects China's position but supports a peaceful resolution of tensions in the Taiwan Strait.

A few days after the Al Jazeera interview, Anwar drew attention again by calling for enhanced defense in the state of Sabah on Borneo island. He cited the development of U.S.-backed military facilities in neighboring Philippines as part of the reason for increased defense spending. Earlier, the Philippine government upgraded military installations on Balabac island, located 50 kilometers from Malaysia's Banggi and Balambangan islands. Balabac was recently added to the Enhanced Defense Cooperation Agreement (EDCA) between Washington and Manila, allowing U.S. forces access to designated sites within Philippine territory.

Anwar's statements have reinforced long-held suspicions among Western commentators that Malaysia is turning its back on the West and leaning toward China, breaking with its traditional neutrality. This comes against a backdrop of China's growing economic presence in Malaysia, with Beijing being the country's largest trading partner. Malaysia is also one of the most active countries in embracing Chinese investment, including projects under the Belt and Road Initiative.

Anwar's seemingly pro-China stance also fits with Malaysia's differences with the West on other geopolitical issues, such as the Middle East conflict. A long-time critic of Israel, Malaysia under Anwar has been particularly vocal in opposing Israel's military campaign in Gaza.

However, some analysts dispute the notion that Malaysia is undergoing a strategic shift. Chee Meng Tan, assistant professor of business economics at the University of Nottingham Malaysia, noted that Malaysia's recognition of Taiwan as “part of China” dates back to a joint statement in 1974 signed by then-Prime Minister Tun Abdul Razak and Chinese Premier Zhou Enlai to establish diplomatic relations. “What's new is Anwar's remarks about the potential use of force, which the One-China policy does not explicitly require,” Tan said.

Tan also suggested that Anwar's statement should be seen in the context of his upcoming visit to China in September, possibly as an attempt to appease Beijing. Daniel Loebell, a PhD candidate at Northwestern University (U.S.) who studies Chinese investment in Malaysia, argued that Anwar's position merely reflects a realistic view of territorial integrity. Loebell believes Anwar's perspective is no different from Malaysia's policy, in that he sees a Chinese attack on Taiwan as equivalent to attacking an insurgency within the borders of a single state.

Anwar's later comments about the U.S.-backed base on Balabac may also relate to the long-running dispute between Malaysia and the Philippines over the sovereignty of Sabah. The Philippines has claimed Sabah since the territory joined Malaysia in 1963, a claim Malaysia has always rejected. In February this year, Manila reaffirmed its claim, maintaining that the Philippine Maritime Zones Act of 2024 preserves its “existing and valid” claims over part of Sabah. In July, Malaysia sent a formal protest to the United Nations over the Philippines' extended continental shelf claim.

According to Professor Tan, Anwar's comments about the military buildup on Balabac may be a “defend-my-borders reflex” rather than a pro-China gesture. Anwar's call for investment in Sabah's defense also comes as Malaysia seeks to bolster its defense posture in Borneo, largely to strengthen its claims in the disputed South China Sea.

Despite taking a less strident stance than the Philippines on the South China Sea issue, Malaysia maintains close defense ties with Western powers as a quiet counterbalance to China's military buildup in the disputed waters. This is reflected in Malaysia's commitment to the Five Power Defence Arrangements (FPDA), a multilateral security framework with Singapore, Australia, New Zealand, and the UK. While not a binding defense treaty, the FPDA requires members to consult each other if Malaysia or Singapore is subjected to armed attack. Malaysia also facilitates the presence of Western military forces in the region, which analysts say provides the country with a quiet deterrent.

Economically, researcher Loebell argues that Malaysia “maintains diverse economic relations with many countries, which prevents it from being deeply aligned with any major power.” He doubts Malaysia is seeking closer alignment with China, as “the U.S. still enjoys economic standing similar to China's,” and “Taiwanese businesses continue to invest heavily in Malaysia's semiconductor industry, which Anwar certainly knows and welcomes.”