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Malaysia’s Diplomatic Balancing Act: Navigating Ties with China and the West

Anwar Ibrahim, the Malaysian politician and former Deputy Prime Minister, has been praised by economists for his adoption of pragmatic policies in his approach to foreign affairs. In the wake of the COVID-19 pandemic and changes in the global economic landscape, Anwar has demonstrated a practical and realistic approach to diplomacy, drawing support from various quarters for his measured responses to regional and global challenges. This article explores the principles of pragmatism underlying Anwar’s foreign policy, and how they have led to greater stability and progress for Malaysia on the world stage.


Malaysia has managed to balance its ties with the West and China, with a pragmatic approach that is focused on economic stability and national interests. This was demonstrated by Anwar Ibrahim’s recent proposal for an Asian response to the US dollar’s dominance of the global financial system, which some saw as a way to mend ties with China.

During Pakatan Harapan’s first stint in government from 2018 to 2020, the government was critical of China’s Belt and Road Initiative and some projects, such as the East Coast Rail Link, slowed down. This led to some repercussions, including reports of Chinese coastguard vessels encroaching into Malaysian waters, with Beijing’s objective being to intimidate and disrupt Malaysia’s exploration activity.

However, Anwar’s more pragmatic approach has helped to put Malaysia back on track with China. He has also won over the West with his market-friendly attitude and principled struggle for democracy and human rights. Anwar recognizes the geopolitical complexities of the post-pandemic world, particularly the risks of great power competition, and is not afraid of radical change if necessary.

Malaysia’s foreign policy has evolved over the years to strike a balance in the country’s relationship with both the West and China. While Mahathir introduced the Look East policy, Malaysia never completely overlooked the West. A more flexible and responsive approach to policy under Anwar is expected in light of changing global and regional economic conditions.

While every administration in Malaysia has been pragmatic in its foreign policy, there is a growing economic reality that is driving Malaysia closer to China. China’s ascending position and the US’s retreat into protectionism make it natural for Malaysia to become closer to China. However, Malaysia remains committed to staying neutral when it comes to China and the US while being pragmatic about the Malaysian economy.

In conclusion, Malaysia has managed to steer a middle path between the West and China, focused on economic stability, national interests, and neutrality. Anwar’s more pragmatic approach has helped to mend ties with China while winning over the West with his market-friendly attitude and principled struggle for democracy and human rights. Malaysians can expect a more flexible and responsive approach to policy under Anwar in light of changing global and regional economic conditions.

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