PETALING JAYA: Taiwan and Malaysia are boosting their economic and technological partnership, with semiconductors and artificial intelligence (AI) emerging as key areas of collaboration, Dr Lien Yu-Ping, Taiwan’s representative (head of mission) to Malaysia, said at the 2026 Lunar New Year Tea Reception on Tuesday.
The event was organised by Taipei Economic and Cultural Office in Malaysia.
Lien highlighted that the semiconductor industries of both countries are highly complementary and interdependent. “Eco-nomically, Taiwan became Malaysia’s 4th largest trading partner in 2025, with total bilateral trade reaching a historic US$57.4 billion (RM225 billion), marking a 32.3% increase compared with the previous year,” she said. Taiwan is also Malaysia’s seventh largest investment partner, creating around 500,000 local jobs, she added.
Education and tourism ties between the two nations are equally strong. About 10,000 Malaysian students pursue studies in Taiwan each year, while 130,000 Malaysian alumni have returned home, contributing expertise and serving as bridges of friendship. In 2025, nearly 700,000 people travelled between Taiwan and Malaysia, further deepening people-to-people connections.
Malaysia is actively pursuing digital transformation and aims to become an AI-driven economy supported by a comprehensive AI ecosystem by 2030. Lien noted that Taiwan, as a global leader in advanced semiconductor production and AI server technology, is well-placed to support Malaysia’s ambitions. “Only through cooperation with Taiwan can Malaysia secure a leading position in the global AI race,” she said, emphasising the strategic role Taiwan plays in global supply chains.
Lien also urged Malaysia to renew the 1993 Bilateral Investment Agreement to better reflect current supply chain realities and strengthen institutionalised cooperation based on equality, respect, and reciprocity. She stressed that Taiwan’s New Southbound semiconductor and AI industry strategy depends on partners viewing Taiwan as a fair and equal collaborator.
She added that Taiwan already meets the high-standard requirements of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and its accession could bring significant economic benefits to Malaysia and the wider region while further reinforcing the trade pact.
Lien concluded by underscoring the long-term benefits of closer collaboration. “By building on our achievements, Taiwan and Malaysia can continue to create a win-win situation in trade, technology, and human capital.”