KUALA LUMPUR: Taiwan has confirmed that it suspended bilateral investment negotiations with Malaysia last month following Prime Minister Datuk Seri Anwar Ibrahim’s remarks describing Taiwan as part of China.
United Daily News, in its report, quoted Taiwan’s Foreign Ministry spokesman Hsiao Kuang-wei saying the decision was made in consideration of the island’s national sovereignty and economic security, as well as to safeguard the interests of Taiwanese investors.
Hsiao was responding to reports by Nikkei Asia that Taiwan had called off bilateral trade talks with Malaysia scheduled for late October.
He said the ministry had expressed serious concern over Anwar’s “unfriendly” remarks in August, warning that they could undermine Taiwanese businesses’ confidence in investing in Malaysia and expose them to greater risks.
Hsiao said Taiwan had temporarily suspended the investment negotiations to protect its investors, but continued to engage with Kuala Lumpur in the hope of creating favourable conditions for their resumption.
Nikkei Asia’s report said that diplomatic tensions between the two sides could jeopardise future Taiwanese investments in Malaysia, particularly in the semiconductor industry.
It cited a Malaysian government source claiming that talks to expand bilateral trade cooperation, scheduled for late October, had been put on hold following Anwar’s remarks.
Anwar sparked controversy during an interview with Al Jazeera in August when he said he considered Taiwan part of China.
In the interview, Anwar expressed support for the One China policy, stating that historical factors should be considered when examining Taiwan’s relationship with China, while adding that Taiwan was part of China and the matter should ultimately be left to the Chinese people.
The comments drew a strong reaction from Taiwan’s Foreign Ministry, which accused Anwar of making “false” statements that suggested Taiwan was a breakaway province of China, while openly rationalising Beijing’s position on the use of force to achieve reunification.
Nikkei Asia also reported that Taiwanese business leaders were increasingly concerned about the diplomatic fallout.
Taiwan Chamber of Commerce in Malaysia honorary president Lin Kai-min was quoted as saying that existing operations were unlikely to be immediately affected as companies had already committed substantial capital, but investors were becoming more cautious about new projects and expansion plans.
Lin warned that geopolitical uncertainty could prompt Taiwanese companies, particularly those serving European and United States markets, to reconsider future investment locations amid concerns over supply chain security, technology protection and export control compliance.
The report also quoted Small and Medium Enterprises Association of Malaysia (Samenta) president William Ng cautioning that future investments could shift to Vietnam or Thailand if Malaysia’s perceived neutrality changed.