“Economists Predict Lawrence Wong May Leverage Johor to Boost Singapore-Malaysia Investments “

SINGAPORE: The impending leadership transition in Singapore from Prime Minister Lee Hsien Loong to Deputy Prime Minister Lawrence Wong is expected to influence Malaysia’s investment landscape, according to economists. They speculate that Singapore may seek to increase investments in Johor, given the strong ties between Singapore and Malaysia and the favorable relationship between Singapore’s leaders and Malaysia’s King, Sultan Ibrahim.

Economists, such as Dr. Shankaran Nambiar from the Malaysian Institute of Economic Research, anticipate that Mr. Wong will build on Mr. Lee’s trade and investment policies, focusing on sustained economic growth and enhanced foreign direct investment (FDI) in the region. Nambiar also noted the potential for increased collaboration between Johor and Singapore due to Johor’s strategic location and the King’s rapport with Singapore’s government.

Dr. Oh Ei Sun, a senior fellow at the Singapore Institute of International Affairs, shared confidence in the stability of Singapore-Malaysia trade relations. Singapore’s ability to adapt to global economic challenges will likely aid in strengthening regional ties, he remarked.

In the first half of 2023, trade between Malaysia and Singapore amounted to US$301.2 billion, with Singapore ranking as Malaysia’s second-largest trading partner. Initiatives like the Johor-Singapore Special Economic Zone and the revived high-speed rail project underscore both nations’ commitment to enhancing economic cooperation.

Meanwhile, Dr. Azmi Hassan from the Nusantara Academy for Strategic Research foresees some shifts in Singapore’s policy focus under Mr. Wong. He suggests Wong might adopt a more Singapore-centric approach, particularly with upcoming elections and the need to solidify his leadership legacy.