Malaysia, Singapore urged to promote stronger cooperation

Malaysia and Singapore can become attractive investment destinations for global tech firms seeking safer locations for their operation due to the US-China trade tensions, according to the Bernama news agency of Malaysia.

In its article published on Wednesday, Bernama mentioned the benefits of cooperation between the two Southeast Asian countries, highlighting the potential to attract foreign direct investment (FDI) by leveraging their combined populace of almost 700 million to create a large and attractive market for investors.

Greater collaboration between them will also provide some sort of shield for both countries to overcome global risks that are seen on the horizon, including a slowdown in external demand, persistently elevated inflation and interest rates, and rising geopolitical tensions and conflicts, the agency said.

Additionally, they can tap each other's strengths, with Malaysia having abundant low-cost labour and Singapore possessing a strong financial system and abundant resources.

Recent statistics show that more than 1.18 million Malaysians are working in Singapore. In 2023, total trade between the two countries reached 363.13 billion RM (79.6 billion USD).

For more than a decade, Malaysia and Singapore have been each other’s second-largest global trade partner and the largest among the ASEAN countries.

They will celebrate the 60th founding anniversary of bilateral relations next year.

By enhancing economic cooperation, the two countries can promote growth and prosperity for themselves and the entire ASEAN region, Bernama said.