Urgent Singapore, Patient Malaysia

Abstract

Superficially, there would appear to be every reason for Singapore and Malaysia to be part of the same political entity. They are separated by less than a mile of shallow water, spanned by a busy causeway. Many families have members both in Singapore and in Malaysia. The two nations speak a common variety of languages, share similar racial stocks (though in differing proportions), adhere to the same Muslim, Buddhist, Hindu, and Christian faiths. And common interests extend to the political realm, too. They are joined in warding off Indonesian confrontation, and mutually encourage the assistance they are receiving from British troops, equipment, and money. Better relations with Indonesia would be welcomed in both capitals. Probably both sets of leaders would prefer to see Sabah and Sarawak remain a part of Malaysia. Singapore's Prime Minister Lee Kuan Yew and Malaysia's Tengku Abdul Rahman are alike in their desire to prevent the spread of China's political influence in the region, just as they wish to keep down political opponents on the extreme left. Both rely exclusively upon foreign and local private investors to carry through their industrialization plans. And both would undoubtedly enhance their industrialization programmes if they co-operated more closely. The Malaysian market alone, or the Singapore market alone, does not look tempting to investors. Since neighbouring countries can absorb very little of their productive output, and most industries in the two countries (with some exceptions, especially plywood and garments) are not able to produce cheaply enough to compete on the world market, manufacturers must have access to both the Malaysian and Singapore markets at the same time if they are to produce in economical quantities. A mission from the World Bank, in a report released the month that Malaysia was formed, urged the formation of a common market between Singapore and the rest of Malaysia. Even if such a market were formed, the report stated, it has become clear to the mission