Malaysians welcome Singapore's role in Iskandar

11 January 2012 , By Channel News Asia

Malaysians generally welcome Singapore's involvement in their country's economic development, especially in the southern region of Johor.

Many are heartened by comments from Singapore Prime Minister Lee Hsien Loong that it is very much in the interests of Singapore to see that Iskandar, the southern economic region, prosper and succeed.

Mr Lee said Iskandar's success can help ease the constraints faced by Singapore in terms of space and manpower.

Mr Lee was speaking after he met his Malaysian counterpart Najib Razak at their third leaders' retreat at the Malaysian administrative capital of Putrajaya on Thursday.

Analysts hailed the meeting as timely as it came amid grave global economic uncertainties, with the eurozone debt crisis still unfolding and looks set to get worse.

Dr Yeah Kim Leng, chief economist at RAM Holdings, said: "Much welcome by the public, largely because against the backdrop of the worsening global economy environment, any moves to push for greater economic co-operation and perhaps boost economic activities in both countries will likely support domestic demands...I think the rebalancing shift from export-oriented to domestic activities will be a key measure to actually counter the global headwind."

Malaysia and Singapore, analysts said, can do a lot more to help cushion the impact of potential economic fallouts from the EU and the US.

Apart from the two iconic wellness projects in Iskandar, analysts are also giving the thumbs up to the new initiative to set up joint industrial working group to train workers in industrial and manufacturing sectors.

Malaysia also welcomes Singapore's expertise in environmental protection to help clean up rivers and jointly develop eco-tourism in southern Johor.

Malaysia, Prime Minister Najib said, is also keen to sell electricity to Singapore by taking part in the bidding system once the Singapore framework for import of power supply is ready.

Indeed, with improved bilateral relations, it certainly opens up a lot more opportunities for win-win partnerships between the two countries.