Malaysia

Malaysia - Singapore must forge ambitious economic alliance, says Deputy Minister

Liew Chin Tong calls for transformative vision for Johor–Singapore Special Economic Zone, rejecting outdated economic thinking in favour of a strategic manufacturing-led partnership

Updated 1 year ago · Published on 17 Jun 2025 1:22PM

Malaysia - Singapore must forge ambitious economic alliance, says Deputy Minister
Both nations must act decisively, seize emerging opportunities, build resilience, and shape the future together, Liew says

DEPUTY Minister of Investment, Trade and Industry, Liew Chin Tong, has urged both Malaysia and Singapore to seize the opportunity to create a “globally relevant and consequential” economic partnership through the Johor–Singapore Special Economic Zone (JS-SEZ), warning against defaulting to conventional models of cross-border collaboration.

Speaking at the Malaysia–Singapore Chinese Chambers of Commerce Business Forum, Liew welcomed the forum’s theme – “Building a globally competitive partnership”* – as both relevant and urgent in a world shaped by geopolitical instability and technological disruption.

“We are living in a time of profound and rapid change, change that has outpaced our expectations,” Liew said. “In the face of such transformations, we must act decisively, seize emerging opportunities, build resilience, and shape the future together.”

The deputy minister recalled that Prime Minister Dato’ Seri Anwar Ibrahim’s official visit to Singapore in January 2023 marked a pivotal moment in bilateral relations, leading to a Memorandum of Understanding on the JS-SEZ in January 2024 and a formal agreement a year later.

“The question before us now is: what do we truly envision for the JS-SEZ? Is it merely a relocation of low-end manufacturing from Singapore to Johor, or can we aim higher to build a globally relevant and consequential economic partnership?”

Liew also urged both nations to consider their role within a volatile international context, referencing conflicts in the Middle East, Europe, and rising tensions in Asia – including the Taiwan Strait, Korean Peninsula, and South China Sea.

“By maintaining a neutral and independent stance, we can collectively act as a stabilising third force with like-minded middle powers,” he said, highlighting ASEAN’s potential to be a force for equilibrium in an increasingly polarised world.

Turning to economic fundamentals, Liew criticised long-held assumptions about industrial development. He rejected the notion that countries must ‘graduate’ from manufacturing to services, or that production can be permanently outsourced while nations focus solely on finance or design.

“These assumptions have all been debunked. Today, even advanced economies like the United States are rebuilding their manufacturing base, processing rare earths, and reshoring critical production,” he said.

He stressed the renewed importance of materials, minerals, and manufacturing in driving innovation in sectors such as semiconductors, artificial intelligence, and quantum computing.

In this context, he called for Malaysia and Singapore to build a strong industrial base underpinned by a supportive financial and regulatory ecosystem.

“Malaysia and Singapore are uniquely positioned. Few regions in the world possess such a complementary industrial ecosystem,” he noted in a statement on Tuesday, pointing out that both economies still maintain manufacturing as more than 20 per cent of GDP — an uncommon strength in the semi-advanced world.

“Despite general perceptions, Singapore still has a significant manufacturing base. When combined with Malaysia’s capabilities, the potential is enormous.

“We should aspire to build our own ecosystem — a mini Samsung, Huawei, or TSMC — born out of a Malaysia–Singapore partnership. Together, we can serve as a mini Korea in the global supply chain, adding value far beyond our geographic size.”

Liew commended the efforts of the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) and the Singapore Chinese Chamber of Commerce and Industry (SCCCI) in fostering deeper bilateral ties.

“We must build on this momentum and do more, together,” he added - June 17, 2025

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