KUALA LUMPUR: The soon-to-be Singapore Prime Minister, Lawrence Wong plans to enhance relations between Malaysia and Singapore, as revealed by the Malaysian Minister of Investment, Trade and Industry, Tengku Datuk Seri Zafrul Abdul Aziz.
In a post on X, Tengku Zafrul said that trade between the two countries has indeed been strong.
“However, the world now has to face two main megatrends, namely deglobalisation and also the need to achieve zero carbon emission target to improve the world’s socio-economic situation,” he said.
According to Tengku Zafrul, Malaysia and Singapore have the synergy to develop the required leadership needed for the ASEAN region in both matters, especially during Malaysia’s ASEAN chairmanship next year.
Meanwhile, Wong believes that a key challenge for him will be elevating economic ties to benefit all of the 10-member ASEAN bloc.
He said that strengthening these ties is crucial for maximising mutual potential and creating wealth for citizens amidst a hostile global environment that favours competitive economies.
However, by collaborating with Malaysia’s Prime Minister Datuk Seri Anwar Ibrahim, Singapore could attract global tech firms to relocate due to the US-China trade and chip war.
In doing so, the Malaysia-Singapore nucleus can be a magnet for attracting foreign direct investments into the Asean region, based on its combined populace of almost 700 million and being the third most populated region.
Rated 6th in the world for semiconductor exports, with RM575 billion in sales in 2023, Malaysia reportedly has 7% of the global market share.
For over a decade, Malaysia and Singapore have been each other’s 2nd largest global trading partners and the largest among Asean countries, as the two economies are ‘almost dependent on each other’. In 2023, total trade between the two countries was valued at RM363.13 billion.
Singapore has high labour costs, skills shortages and lack of manpower, despite having healthy public finances with huge reserves, offering it the springboard to chalk up high economic growth.
Due to this, many of Malaysia’ exports go through Singapore and a significant number of Malaysians work in Singapore while there are many companies from both countries that do business in each other’s markets.
Recent statistics show that more than 1.18 million Malaysians are working in Singapore, while overall 1.8 million Malaysians are working in the region.
The two countries will celebrate 60 years of bilateral relations next year.
The 52-year-old Wong, who is the Singaporean Deputy Prime Minister and Minister of Finance, will succeed 72-year-old Lee Hsien Loong, who served Singapore’s government for nearly 20 years since 12 August 2004.
Wong’s swearing-in ceremony will take place at 8pm at the Istana, the official residence and office of the Singapore president.
— BERNAMA
