Nikkei, citing Malaysian government sources, reported that following Malaysian Prime Minister Anwar’s “One China” remarks, Taiwan postponed bilateral trade talks originally scheduled for late October. Industry insiders said existing operations of Taiwanese companies in Malaysia will have limited impact in the short term, but new investments and large-scale factory expansion projects may be re-evaluated.
Anwar had said in an interview given to Al Jazeera in August that Taiwan is part of China. When asked whether he would condemn Beijing if it used force, he cited the attempted secession of the Malaysian state as an example and declared that he would use force to protect national unity. Taiwan’s Foreign Ministry condemned these comments, stating that they could affect the confidence of Taiwanese businessmen to invest in Malaysia. Anwar later stressed that cross-Strait differences should be resolved peacefully and reiterated Malaysia’sone-China policy .
According to Malaysian government data, trade volume between Taiwan and Malaysia increased by 39.9% in the first eight months of this year, reaching 213.5 billion Malaysian dollars (US$52.6 billion), mainly driven by electrical and electronic products. ASE, Silicon Products and Kibang have invested in semiconductor packaging and testing facilities in Malaysia in recent years.
Lin Kaimin, honorary president of the Taiwanese Business Association of Malaysia, said Taiwanese businessmen have invested large sums of money in local factories and it will not be easy to adjust in the short term. However, supply chain security, technical security and export controls will all influence site selection in the future. Malaysian Small and Medium Enterprises Association president William Ng said currently no Taiwanese businessmen have suddenly canceled orders or closed factories, but if investors feel Malaysia’s situation has changed, new investments may shift to Vietnam or Thailand.
