The commentary titled “How Malaysia can save Singapore from itself” by William Pesek said Mahathir’s focus on retooling the economy could generate a healthy rivalry, not just for Prime Minister Lee Hsien Loong’s government but for others throughout the region.
“The message from Mahathir in his second stint as prime minister to Rodrigo Duterte of the Philippines, Prayut Chan-o-cha of Thailand and other leaders whittling away at democratic norms is to beware the wrath of your people. The signal to Indonesia’s Joko Widodo is that nothing good comes from tolerating economic nationalism.
“To Vietnam’s Nguyen Xuan Phuc, it is about the dangers of tightening the noose around the media. To Cambodia’s Hun Sen, it is the futility of decimating opposition forces. And to Lee’s Singapore, it is the costs of complacency in what is essentially a one-party state,” Pesek said.
Putrajaya’s decision to have a re-look at the Kuala Lumpur-Singapore High-Speed Rail (HSR) project as well as threatening to charge Singapore more for water are among issues that have caused unease in the city state.
Mahathir had said the huge cost for the HSR project had compelled the Pakatan Harapan government to consider postponing it.
He had said the Malaysian government would renegotiate with its Singapore counterpart about the project’s future at the end of this month.
Mahathir had also criticised a 1962 water supply deal with Singapore, describing it as “too costly”.
He had expressed the view that the recently concluded Trans-Pacific Partnership, a regional trade agreement which included Singapore, should be re-negotiated.
In light of the latest economic scenario, Singapore might end up thanking Mahathir for adopting these positions, said Pesek.
Pesek said according to World Bank data, Malaysia was poised to regain its gross domestic product lead over Singapore.
According to World Bank figures, Malaysian output hit US$314.5 billion in 2017, just $9.4 billion below Singapore’s US$323.9 billion.
That gap is likely to narrow further, as Malaysia’s projected 5.5% growth exceeds Singapore’s projected 3.1%.
“It is time Singapore manufactured a more dynamic and innovative future – one that relies less on factories and more on the natural resource it does have: a smart and determined workforce.
“The sudden burst of reformist energy in Malaysia could make Mahathir an unlikely ally in that enterprise,” Pesek said.
He also praised the new Malaysian government for ensuring transparency and for taking urgent measures to address issues related to corruption.
These included charging former prime minister Najib Razak for criminal breach of trust and abuse of power.
He also lauded the PH’s government candour in revealing the state of the country’s debts to the Malaysian public.
Pesek contended that Malaysia had fared less better than Singapore due its affirmative action policies enacted in the early 1970s.
These policies have impeded innovation and productivity and had enabled Singapore to overtake her neighbour in terms of GDP.
However, Pesek said the present global economic developments were having a negative effect on Singapore’s economy.
These included the fallout from President Donald Trump’s trade war which is impacting upon Singapore’s export-reliant and manufacturing-oriented economy.
Pesek said Singapore should be less reliant towards China and should capitalise on the potential posed by Indonesia, the Philippines, Vietnam and Malaysia.
He said Southeast Asia’s burgeoning middle-class consumer sector is a ready market into which Singaporean startups could offer their products and services.