Business

Thursday November 12, 2009

Malaysia and Singapore need to boost economic ties

Stories by FINTAN NG


SINGAPORE: Malaysia and Singapore should set their disagreements and other disputes aside and work on strengthening their ties in the more challenging economic and geopolitical environment today.

Kuala Lumpur Business Club (KLBC) president Datuk Rohana Mahmood said there was a perception that both countries’ paths had diverged in the past decade although there had always been cross-border investments.

The KLBC is a networking club for business leaders and members include those from the financial services, oil and gas, property development and technology sectors, among others.

A delegation of KLBC members was in Singapore over the week to meet members of the Singaporean government and business community to network as well as explore business opportunities in conjunction with the Asia Pacific Economic Cooperation CEO Summit.

Rohana echoed views among various leaders in the island republic as well as Malaysia that there was a need to move on from the past and concentrate on strengthening ties to meet future challenges.

These challenges include how to manage further integration of the economies of Asean, future financial crises as well as the growing economic clout of China and India.

“My view is that relations have always been good, bar the occasional spats.

“We’ve always invested in each other’s country, it’s all about business,” Rohana told StarBiz yesterday.

She said what was neglected was the need to strengthen business relationships in the face of the sometimes overwhelming political rhetoric.

“Although we’re neighbours, there’re many things that we still don’t get right. Clearly the relationship needs improvement.”

She said both countries could work together within the Asean framework in areas where both had their strengths, including tourism, shipping and oil and gas industries.

Meanwhile, KLBC deputy president Tengku Zafrul Aziz said there was a need to push for standardisation in policies in both countries for better economic integration.

“We’re both small and open economies and the synergies between both countries can work better if policies are standardised,” he said.

What put off investors, including Singaporeans, was also the uncertainty in investment policies, Zafrul said, adding: “Younger Singaporean firms with no ties to the past find it hard to work in Malaysia and they cannot draw on past experiences and knowledge to navigate their way.”

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