Photo by Kirill Petropavlov on Unsplash
For the first time since 2019, leaders from Singapore and Malaysia met in Singapore for the 10th Singapore-Malaysia Leaders’ Retreat. It is also the first time Prime Minister Anwar Ibrahim is representing Malaysia in the Retreat as the country’s Prime Minister. Under PM Anwar’s reign, relations between Singapore and Malaysia have greatly warmed up, and hence, many expected this retreat to bring about many avenues of cooperation in security, education and the economy. Moreover, unlike the Mahatir-led Malaysia, an Anwar-led Malaysia seeks to cooperate with Singapore and resolve the contentious issues in the past that have plagued their relations. This essay seeks to discuss the key takeaways from the retreat.
In terms of outstanding bilateral issues, PM Lee Hsien Loong and PM Anwar came to very positive conclusions, with a commitment to making progress in these issues. One of the points of concern was the supply of water. Malaysia pledged its commitment to honour the water agreement with Singapore and even hoped for opportunities for joint studies on the Johor River by the Ministry of Sustainability and Environment (MSE) in Singapore and the Malaysian Natural Resources, Environment and Climate Change Ministry (MNRECC) to ensure water quality and increase the yield of the water supply from the Johor River. Both sides also hope for measures to be implemented to ensure it can support the needs of Johor and Singapore. Both sides also strive to re-negotiate the prices of raw and treated water sold. Prior to PM Anwar’s reign, under PM Mahathir, the subject of water has always been a hot topic, as Mahatir always felt that the 1962 Water agreement was ‘unfair’ towards Malaysia due to the low price of raw water supplied by Malaysia. Such joint efforts under Anwar highlight the warming of ties between the two countries, to be able to collaborate in resolving such a contentious issue. Another contentious matter would be the air traffic services over southern peninsular Malaysia, though both countries were set on reviewing the terms, in accordance with the International Civil Aviation Organization (ICAO) requirements for efficient control of air traffic in both countries. Clearly, both sides look to cooperate, negotiate and review these contentious issues instead of inciting conflict, which is a good sign for Singapore-Malaysia relations.
Economically, Singapore and Malaysia continued to commit towards furthering their economic ties in this retreat. Singapore and Malaysia are already each other’s second largest trading partner, so they already have very strong economic ties. In this retreat though, efforts were made to improve border flows through the establishment of a special economic zone (Johor-Singapore Special Economic Zone). Both countries seek to further connectivity in terms of the flow of goods, manpower and investments. Such a move will be greatly beneficial for both countries as it can boost each other’s economy. I believe it would bring about a more significant impact to Malaysia, seeing how such a move is expected to create jobs in Iskandar Malaysia. Singaporean investments are also expected to rise in that area. Singaporean firms who hire a lot of Malaysian workers could benefit as well from Singapore's commitment to improve border infrastructure. The Singapore government pledged efforts to improve border connectivity and increase efficiency through the expansion of the Woodlands Checkpoint. Efforts to alleviate congestion along the checkpoint and expand the capacities of the checkpoint can facilitate cross-border movement for citizens of both countries. All in all, such a special economic zone will be a win-win situation, where Malaysia can benefit from the increase in jobs and investments, and Singapore firms can gain returns from its investments in Malaysia. In January 2024, an agreement for this is expected to be finalised. As for Singaporean and Malaysian enterprises, they can also rejoice knowing that the Malaysia-Singapore Business Development Fund’s scope is expanded with the fund providing support for both firms to further their business in other countries and also conduct joint pilot programs in each other’s country. Businesses are encouraged to do so in emerging and sustainable industries like in the Digital and Green Economy. As for Small and Medium Enterprises (SMEs), support for these firms in both countries were also enhanced with the signing of a Memorandum of Understanding (MOU) between SME Corp Malaysia and Enterprise Singapore to enhance global competitiveness of these SMEs. Such extensive support from both governments will certainly help push for the development of an entrepreneurship culture in these two countries. As such, both countries are expected to strengthen their extensive economic ties after the MOUs signed during the retreat.
In addition, both countries are also expected to collaborate in the education sector that will benefit students in both countries. Students in institutes of higher education in Singapore and Malaysia can look forward to more exchange programs especially in the aspect of vocational and technical education. As for academic and administration staff, they can also stand to benefit from the exchange of information between the two countries regarding the training curriculums. For both countries, it is important that they continue exploring how certain things are done in another country, as it could lead to them discovering things that can add value to their own educational systems.
Another key aspect that both countries reaffirmed their collaboration in is security. The issue of security, more often than not, is always a regional or global conundrum. Hence, multilateral cooperation is required to effectively counter security threats. With criminal threats growing in scale over the years, it is important for Singapore and Malaysia to enhance cooperation in these issues. Especially in terms of drug trafficking, a crime that transcends across the borders of ASEAN. Both countries renewed their commitment to combat this by signing a MOU on countering illicit trafficking of drugs and other psychotropic substances. With this, law enforcement agencies in both countries can work hand in hand in combating crime through the exchange of information and joint exercises. Such renewed efforts will benefit both countries in terms of reducing crime, considering how joint exercises by law enforcement agencies in both countries have led to significant crime syndicates being nabbed. As such, these two countries will be expected to enhance cooperation in the area of security to counter transnational crimes.
In conclusion, the retreat mostly yielded positive outcomes for the two countries, with a commitment to resolve contentious issues and yet build on the areas of cooperation between the two countries. Ties between the two countries are expected to strengthen through enhanced connectivity, collective support for SMEs in both countries, and enhanced cooperation in education and security. In January 2024, these two countries are expected to meet again, and one can expect deepened ties then, with a MOU on the special economic zone to be signed in 2024.
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