Anwar's Taiwan comments stir debate over Malaysia's neutrality

Malaysian Prime Minister Anwar Ibrahim's assertion that Taiwan is part of China has raised questions about his country's traditional non-aligned policy. He also indicated he would use force to prevent secession, drawing praise from Beijing and criticism from Taipei. The remarks could affect Taiwanese investment in Malaysia's semiconductor industry.

Anwar's interview remarks drew swift diplomatic reactions, with Beijing praising his position while Taipei warned that "one-sided support for China" could undermine Taiwanese business confidence in Malaysia. The stakes are considerable, as Taiwan is the world's largest chip producer and a major investor in Malaysia's semiconductor sector. Anwar later softened his stance, stressing respect for China's position while favouring peaceful resolution of Taiwan Strait tensions.

Separately, Anwar cited US-backed military facility upgrades in the Philippines—specifically on Balabac island, roughly 50km from Malaysian territory—as partial justification for increased defence spending in Sabah. These developments unfold against a backdrop where China is Malaysia's largest trade partner and a significant source of Belt and Road investment, while Malaysia has also diverged from Western positions on Middle East conflicts.