Taiwan has confirmed media reports that it suspended bilateral investment talks with Malaysia last month in response to Prime Minister Anwar Ibrahim’s apparent support for the territory’s reunification with China by force.

The move highlights the economic fallout from rising tensions between Malaysia and its fourth-largest trading partner, with bilateral trade in goods totalling RM233 billion last year, following Anwar’s remarks in August.

Taiwan Foreign Ministry spokesperson Hsiao Kuang-wei confirmed the suspension at a press conference this morning when asked to comment on a Nikkei Asia report published yesterday. The report, citing unnamed Malaysian government insiders, said talks scheduled for late October had been shelved.