Symbiotic ties across the Causeway

President Halimah Yacob’s first state visit to Malaysia recently provided an excellent occasion to take stock of bilateral ties and look at the way ahead. Economic interdependence and partnership remain a fundamental component of strong Singapore-Malaysia relations, she noted, and

urged both sides to work closely together.

The two nations could then promote sustainable development, spur technological breakthroughs, and create good jobs for their respective peoples. The symbiotic and indeed win-win relationship between them is evidenced by the economic figures. In 2022, bilateral trade grew 18.9 per cent to reach $153 billion. Singapore remains Malaysia’s top foreign investor, while Singapore is its top investment destination. Differences between close neighbours may arise sometimes, but a strong reservoir of trust and familiarity built up over time has helped both sides to navigate their way through disruptive issues. Madam Halimah’s visit underscored the enduring vitality of cross-Causeway ties.

Economic interdependence is not a choice but a necessity for Malaysia and Singapore. Both countries are beneficiaries of globalisation and of regionalisation, the latter trend being manifested in Asean’s journey towards economic and other forms of closer integration. Unfortunately, globalisation is under pressure from economic fragmentation caused by strategic differences among the major world powers. A case in point is the ease with which the decoupling of the American and Chinese economies entered mainstream global discourse, along with the consequent disruption of global supply chains, an economic development that reflects

the strategic rivalry between the two nations.

Regions could unravel economically as their constituent nations respond to larger centrifugal forces by choosing sides.