Palau’s President Surangel Whipps said on Wednesday that the island country was hit by a major cyberattack in March, just as it reached an agreement with the U.S. on a two-decade aid package.
“The source came from somewhere in Malaysia with traces back to China,” said the president in a news conference in Tokyo, citing an analysis by Palau’s experts on the attack. He added that it was the “first major attack” according to the island nation’s government records.
Palau is one of the few countries that maintain formal diplomatic relations with Taiwan.
Whipps said the unprecedented attack targeted Palau’s Ministry of Finance. It happened in mid-March, just as Palau and the U.S. exchanged diplomatic notes on security and economic assistance, called the Compacts of Free Association.
“China wants to weaken those relationships, show our vulnerability, and what a great way to do it by hacking our system,” he said.
“We need to alert the world that what is being done is not acceptable,” said Whipps. “The U.S. really has stepped up its efforts to try to help us with cybersecurity because now it’s definitely a threat and something that we need to be aware of.”
The New York Times reported on Sunday that more than 20,000 documents were stolen from the government.
When asked about the allegation on Tuesday, China’s foreign ministry spokeswoman Mao Ning said she was not familiar with the incident, instead stating, “China firmly opposes and cracks down on all forms of cyberattacks in accordance with law.”
Meanwhile, Taiwan, Japan and the U.S. have shown support for strengthening Palau’s digital security.
Beijing has repeatedly entered Palau’s exclusive economic zone illegally, according to Whipps: “This is not the first incident where China doesn’t respect our boundaries,” he said. Since he took office in 2021, multiple Chinese research vessels have conducted activities without Palau’s permission.
Regarding the relationship with Taiwan, which Palau has had diplomatic ties with for 25 years, he said, “It’s important for us to all support them and maintain the status quo.” While Palau maintains diplomatic relations with Taiwan, a number of Pacific Island countries have been restoring diplomatic ties with China, as Nauru did in January.
Whipps added, “People in Taiwan should participate in international organizations like the WHO or the U.N. because they don’t have a voice, and they need a voice.”
The Palauan leader on Tuesday agreed with Japanese Prime Minister Fumio Kishida to strengthen cooperation in multiple fields including defense and people exchange. His visit will be followed by the 10th Pacific Islands Leaders Meeting (PALM10) in July in Tokyo.
Reflecting on his meeting with Kishida, Whipps said they had “a frank discussion and an exchange over pressing issues that Palau has, but also that we have in the Pacific especially when it comes to climate change.”
