Singapore watching political developments in M'sia closely: PM

SINGAPORE — The Republic is watching political developments in Malaysia closely, said Prime Minister Lee Hsien Loong, who expressed his hope that the country remains stable.

“When something happens which could cause either a political upset or social or security worries, I think we have to watch very carefully,” said Mr Lee today (July 31). He was interviewed by Ambassador-at-large Chan Heng Chee for A Conversation with the PM: Our Future, Our People, which is airing on Channel NewsAsia and Channel 5 on Sunday (Aug 2).

Professor Chan, who is also chairman of Lee Kuan Yew Centre For Innovative Cities at the Singapore University of Technology and Design, had asked Mr Lee whether the political developments in Malaysia would affect Singapore, and how.

Mr Lee noted that Malaysia is Singapore’s closest neighbour, not just geographically, but also linked by “very big trading ties and investments”.

“We have a lot of people who live and work in Malaysia, a lot of Malaysians work in Singapore...and so when something happens in Malaysia, we watch very carefully and are very concerned how it affects us,” he said.

Malaysia has been in a state of political turmoil of late, with Prime Minister Najib Razak under fire over some US$700 million allegedly funnelled from companies linked to state-owned firm 1Malaysia Development Bhd (1MDB) into his personal bank accounts. Earlier this week, he sacked his deputy Muhyiddin Yassi — who had called on Mr Najib to explain the scandal engulfing 1MDB — as well as four other ministers, and replaced the Attorney-General.   

Mr Lee reiterated that Singapore has very good relations with Malaysia. “I personally have very good relations with Prime Minister Najib, so we hope that Malaysia will remain stable, that we will be able to have a Government there which we can do business with and cooperate with, as we have been doing the last few years,” he said.

Foreign Affairs and Law Minister K Shanmugam, who was separately responding to media queries on Malaysia’s recent developments, said when any two countries are as close as Malaysia and Singapore, they will want stability in each other.

“Malaysia and Singapore are linked by an umbilical cord...The total trade between Singapore and Malaysia is S$111 billion and we are amongst each other’s top trading partners and top investors,” said Mr Shanmugam, who reiterated that Singapore is following developments very closely.

He said: “Any instability in Malaysia will also deeply affect Singapore, both economically and in other ways. We depend on Malaysia for water everyday, protected by a treaty. You really don’t want any instability. We hope that there will be stability that is good for Malaysia and good for us.”