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Taiwan-Malaysia relations have deteriorated following Malaysian Prime Minister Anwar Ibrahim's recent remarks on China, threatening semiconductor investment prospects between the two sides. The diplomatic friction puts at risk cross-border chip investment at a time when Malaysia is positioning itself as a key backend manufacturing hub for Taiwan's semiconductor industry. No specific investment figures or affected companies were disclosed in the initial report. The dispute centers on Anwar's China comments, which have raised concerns in Taipei about Malaysia's alignment. What to watch next is whether the rift cools or escalates, and whether planned Taiwanese chip investments in Malaysia proceed as scheduled.

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Named in this story

Malaysia, Taiwan, Anwar Ibrahim, China