He is talking about diversifying their economic dependence to China and toward US and Europe.
Diversification of economic dependence is perfectly normal. When you are depending on a single country, regardless of their political system, you are running a greater risk if that country's economy has an unforeseen economic downturn.
If you are in corporate sector, you should know the greater risk of having a customer who take up 30% or more of your sales volume. Any changes resulting in diminishing sales order from that customer will likely cause bankcruptcy of your company.
What Anwar is saying is that, while Malaysia will enhance relationship with China, it will do the same for all countries around the World, that includes USA, India, Japan, Turkey and other countries. In short, Malaysia is aiming to enhance trade and security relationships with the whole world, not just China or USA.
Malaysia's stand is in line with ASEAN, i.e. neutrality in South East Asia, avoid conflicts and war, and no siding with China, and no siding with USA. But enhancing better relationship with everybody for an important reason, i,e, improving trade and economy.
First you should study and understand the trades and geopolitics of Malaysia, ASEAN, China, USA and others like Japan, Korea etc. Also look at the past history of Malaysian foreign policies. Don't just pick up a single sentence and give judgement.