President Tharman: Some Singapore businesses may lose out from closer Johor ties, but both countries will benefit

As ties between Singapore and Malaysia deepen, some Singapore businesses may lose out from close links with Johor, but both countries stand to benefit overall, President Tharman Shanmugaratnam said on Wednesday (July 15).

He was speaking to reporters after a breakfast roundtable with business leaders on the final day of his state visit to Malaysia from July 12 to 15.

Addressing questions from the media, President Tharman shared that both sides are investing in bilateral ties and "strengthening complementarity" between the two countries.

"It is no secret that, in linking up more with Johor for instance – through the Special Economic Zone and the RTS (Rapid Transit System) Link – there will be some businesses in Singapore who lose out – some service industries will lose out."

However, he noted that while some businesses and service industries may be affected, others stand to gain from closer Johor-Singapore links.

"Both countries will be winners," he said.

The President added that the overall gains for Singapore and Malaysia would outweigh any smaller losses, describing this as a mature way of approaching the bilateral relationship.

Asean as a powerhouse

A key area of alignment between Singapore and Malaysia is their shared focus on the Association of Southeast Asian Nations (Asean) and its potential.

President Tharman said Asean has significant untapped potential and could emerge as a powerhouse in green energy, data centres and the digital economy. 

He noted that green energy and data centre development are closely linked and could help strengthen the region's competitiveness.

"It is in the national interests of each Asean member state that we join forces on green energy, in processing power, and in the digital economy. It adds up to making Asean’s value proposition that much stronger in a world that is getting more fragmented," he said.

"We have very similar thinking on Asean, and Malaysia is keen to work closely with Singapore as we take on the chairmanship of Asean next year."

@asiaone In a world that is increasing more divided, both Malaysia and Singapore agree on the importance and potential of Asean, and how working together can continue to benefit its people. #sgnews #Singapore #Malaysia #Asean #Trade ♬ original sound - AsiaOne

Forging cross-border friendships among youth

Speaking about his hopes for the future of Singapore-Malaysia relations, President Tharman said more could be done in the areas of youth exchanges and culture.

He reflected on a time when Singaporeans and Malaysians "grew up together" in the past, going to the same schools despite large distances between households.

"We cannot recreate what it was like in the old days… but I think we can find a way to enable more prolonged immersion, so you get the natural development of friendships among our students," he said.

The President suggested that such programmes need not involve all schools or universities. Instead, longer-term exchanges between selected institutions could give students more opportunities to live and study together, helping them build deeper friendships and a more enduring understanding of one another.

While such arrangements may not be easy to implement, he said the long-term benefits would make them worthwhile.

On the cultural front, President Tharman noted that Singapore and Malaysia already enjoy exchanges among artists and cultural groups, but there is room to do more.

He added that multiculturalism in Singapore continues to evolve, with old traditions being recovered and taken forward into the future, and reinvigorated to match the changing times.

"Between Singapore and Malaysia, we can certainly do much more together," he said, adding that progress is possible if institutions from both sides "set their minds to it".

Describing the trip as productive, President Tharman said: "It's been a very useful visit… it's not just a matter of form that we make these visits, but we take personal interest at every level of leadership in Singapore in this bilateral relationship."

President's state visit to Malaysia

President Tharman arrived for his state visit on Sunday (July 12).

On Monday, he was received by Malaysia's King, Sultan Ibrahim, where they spoke on the "positive state of bilateral relations" and "good progress made" in areas such as supply chain resilience, connectivity and joint projects.

The pair also exchanged views on strengthening ties among younger generations of Singaporeans and Malaysians, according to a statement by the Ministry of Foreign Affairs on Tuesday.

President Tharman later met Malaysian Prime Minister Anwar Ibrahim that same day, with discussions covering areas of mutual interest such as food security and energy. Geopolitics was also on the menu, as the two deliberated on the impact of developments in the Middle East.

Monday evening also saw President Tharman engage overseas Singaporeans in Malaysia. He spoke about the important role they play in maintaining strong ties between the two countries.

The following day, President Tharman travelled to Selangor to speak with the Sultan of Selangor, Sultan Sharafuddin Idris Shah.

He also met with Menteri Besar of Selangor Amirudin Shari along with other members of the Selangor state government. Discussions centred on potential collaborations in education, climate adaptation, flood mitigation and start-up development.

President Tharman later said Selangor's leaders had taken a keen interest in Singapore's experience developing the Institutes of Technical Education, as well as efforts to shift public attitudes towards skills-based and vocational education.

The visit concluded with engagements with business leaders. President Tharman attended a dinner hosted by the Kuala Lumpur Business Club, where he spoke with leaders in the economic and finance sectors on the importance of staying connected with major powers.

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khooyihang@asiaone.com