Introduction

Malaysian Prime Minister Anwar Ibrahim’s recent comments about Taiwan have raised questions about whether Malaysia remains committed to its traditional policy of non-alignment and avoiding picking sides between China and the United States. In an interview with Al Jazeera aired earlier this month, Anwar stated that he saw Taiwan “as part of China, period,” adding that this was “accepted by all.”

Anwar's remarks and reactions

More controversially, when asked whether he would condemn China if it resorted to force in the event that peaceful “reunification” did not work, Anwar said that if a Malaysian state were attempting to break away, he would use force to “protect the sanctity and unity of” Malaysia. The remarks were praised by the Chinese government, with a Ministry of Foreign Affairs spokesman stressing that Taiwan is “an inalienable part of China’s territory” and that “China must and will be reunited.”

Taiwan’s government condemned the remarks and warned that Anwar’s “one-sided support for China could negatively impact Taiwanese businesses’ confidence in investing in Malaysia.” Taiwan, the world’s largest chips producer, is a major investor in Malaysia, particularly in the country’s crucial semiconductor industry. Taiwanese enterprises continue to invest heavily in Malaysian semiconductor manufacturing.

Asked about the issue by local media, Anwar appeared to walk back some of his comments, stressing that Malaysia respected China’s position but favoured a peaceful resolution to tensions in the Taiwan Strait.

Analysts weigh in

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 to the 1974 communiqué signed by then-Prime Minister Tun Abdul Razak and Chinese Premier Zhou Enlai. Tan said that what was new was Anwar’s statement on the potential use of force, which the one-China policy does not explicitly require. Tan also noted that Anwar’s comments should be seen in the context of his upcoming trip to China in September, as he may be attempting to appease Beijing.

Daniel Loebell, a PhD student at Northwestern University, said Anwar’s position represents a realist understanding of territorial integrity, and that he does not think it differs from Malaysia’s policy. Loebell suggested that Malaysia has maintained diverse economic relations and has not deeply aligned with any major power, and that the USA still maintains as favorable an economic position as China.

Sabah defence and Balabac

Anwar courted headlines again several days after his Al Jazeera interview when he called for the bolstering of Malaysia’s defences in the Bornean state of Sabah. He pointed to the development of US-backed military facilities on Balabac island in the Philippines. The Philippine government is in the process of upgrading military facilities on the island of Balabac, 50km from the Malaysian islands of Banggi and Balambangan. Balabac was recently added to the Enhanced Defence Cooperation Agreement (EDCA) between Washington and Manila, which granted US forces access to designated locations in the Philippines.

The Philippines has claimed Sabah since 1963; Malaysia rejects the claim. Manila reaffirmed its claim to Sabah in February 2024 under its Maritime Zones Act 2024, and Malaysia lodged a formal protest with the UN in July over the Philippines' extended continental shelf claim.

Some analysts see Anwar's comment on Balabac as a 'protect-my-border' reflex rather than a pro-China gesture, given the long-standing territorial dispute.

Malaysia's balancing act

Malaysia maintains the Five Powers Defence Arrangements (FPDA) with Singapore, Australia, New Zealand, and the UK. The FPDA commits members to consult in the event of an armed attack on Malaysia or Singapore. Two major FPDA exercises are held annually: Bersama Shield and Bersama Lima. The FPDA air defence operations headquarters is at a Malaysian Air Force base in Butterworth, Penang, headed by a senior Australian Air Force officer. Australia maintains a rifle company at Butterworth and a maritime patrol aircraft presence in Malaysia.

Analysts argue that Malaysia facilitates a Western military presence in the region through the FPDA, which provides a quiet deterrent for would-be aggressors. This sits alongside Malaysia's deep economic ties with China, which is Malaysia's largest trade partner. Malaysia has been one of the most enthusiastic recipients of Chinese investment projects, including under China's Belt and Road Initiative.

Conclusion

Anwar's remarks have highlighted the delicate balancing act Malaysia performs between its economic reliance on China and its security partnerships with Western nations. While the comments have drawn praise from Beijing and criticism from Taipei, analysts suggest they may reflect longstanding policy rather than a fundamental shift. The potential commercial consequences for Malaysian-Taiwanese semiconductor ties remain a key concern, as does the ongoing territorial dispute with the Philippines over Sabah.