Malaysia-Taiwan Relations and Taiwan’s New Southbound Policy

Abstract

The main objective of Taiwan's New Southbound Policy is to reduce Taiwan's economic dependence on Mainland China (People's Republic of China/ PRC) and seek new engine for the economic development of Taiwan. Malaysia has the advantage of stable politics and open markets relative to other ASEAN countries. The New Southbound Policy launched in 2016 by Taiwan's Tsai Ing-wen administration encourages local enterprises to invest in and trade with Southeast Asian countries. Malaysia as one of the most important Southeast Asian countries is attracting foreign direct investments (FDIs) from Taiwan with her rich natural resources, cheap labor cost, similar culture, and the easy-access sale network that connects the Association of Southeast Asian Nations (ASEAN) countries. Besides, other aspects including cultural and other societal, people-to-people, interactions also represent important foci of Taiwan-Malaysia bilateral relations under the New Southbound Policy.