The Blossoming of Malaysia and Singapore’s Relationship

On May 5, Malaysian Prime Minister Najib Razak met with Singapore Prime Minister Lee Hsien Loong for the Sixth Annual Malaysia-Singapore Leaders’ Retreat in Singapore. The annual retreat between the two neighbors has become a key bilateral platform and several notable advances were made at this years’ iteration.

Though Singapore and Malaysia were initially part of the same union, first under British rule and then under the state of Malaysia, the two split in 1965 over conflicts between Singapore’s leader Lee Kuan Yew and the Malay-led government under the United Malays National Organization (UMNO). Despite decades of quarrels on issues ranging from water to territory to transportation, recent years have seen a surge of cooperation between the two sides under Lee and Najib.

The Malaysia-Singapore Leaders’ Retreat is a powerful symbol of warmer ties between both countries and their heads of state. The annual meeting includes a session where the two leaders hold discussions alone without any other officials or delegations. The retreats, which since 2012 have taken place annually and alternate between the two countries, have seen some major breakthroughs, including the proposal of a high-speed rail link.

At the most recent retreat, the two sides discussed progress made in advancing their economic relationship. Malaysia was Singapore’s second largest trading partner in 2014, while Singapore was the second largest source of foreign investments into Malaysia that year. But the two countries have been looking to boost ties in this dimension even further. In that regard, the leaders noted progress in joint ventures in both Iskandar Malaysia – a special development zone in the southern Malaysian state of Johor – and the M + S development projects, in Marina South and the Ophir-Rochor area in Singapore, that are part of a joint venture owned by Singapore’s Temasek Holdings and Malaysia’s Khazanah Nasional.

Enhancing connectivity was also high on the agenda at the retreat. In particular, both sides announced measures designed to ease traffic congestion at the bridge crossings that link them. Malaysia and Singapore will both introduce automated motorcycle counters to speed up immigration clearance, and the two countries are also studying other measures to facilitate this process, including biometrics, radio frequency identification stickers in passports and more car counters during peak hours. They also discussed a “Friendship Bridge” idea proposed at the 2014 retreat, which would be the third bridge crossing between Malaysia and Singapore after the Causeway and the Second Link at Tuas. Turning to the sea, a supplementary agreement was also signed between the Maritime Port Authority of Singapore and the Johor Port Authority, which provides for the possibility of additional ferry services between Peninsular Malaysia and Changi Bay North.

Unfortunately, the event that stole the thunder under the connectivity dimension was the decision to postpone the long-awaited high speed rail link between the two countries, which both sides had previously called a “game-changer.” At a joint press conference, both Lee and Najib indicated that the link, which would reduce a 350 kilometer journey from five hours to about 90 minutes, would probably not be built by 2020 as was initially anticipated. Najib said that he estimated that the design process would take one year, the tender process another year, and the building of the link itself would take five years. Lee also said that there were still many issues to be worked out, such as how the project would be structured, where the funding was going to come from, as well as how construction would be divided between the two states. The two countries have pledged to reexamine the existing schedule and hope to have an agreement finalized by the end of the year with a new updated timeline.

On water cooperation, Lee thanked Najib for his support for the Johor River Barrage project. The barrage, a type of low diversion dam, will keep saltwater intrusions out of the river during dry seasons, allowing Singapore to draw on the full capacity of the river. While the project has been delayed due to wet weather, the two sides reaffirmed the importance of making progress on it. Being able to draw water from the Johor River is a critical part of Singapore’s need for a reliable water supply and is part of an agreement signed between the two sides in 1962 with effect through 2061.

Turning to security, a memorandum of understanding (MoU) was also inked between the Singapore Civil Defense Force and Malaysia’s National Security Council to promote cooperation in urban search and rescue capabilities. The MOU strengthens cooperation between the two bodies in terms of training, techniques, and information-sharing related to urban research and rescue as well as disaster management. A joint statement between the two leaders mentioned the signing of a Letter of Intent for Defense Cooperation between the two defense ministries in March 2015.

At the Economic Society of Singapore Annual Dinner in early May Najib said that the relationship between Singapore and Malaysia, which he characterized as never having been better, “needs to be nurtured and looked after carefully and lovingly…only then will it blossom and flourish beautifully.” This year’s retreat provided the two leaders with an opportunity to do exactly that, and the progress made on several fronts suggest that they are serious about advancing ties even further.