Singapore-Malaysia
Relations under Abdullah
Bilateral issues may still be outstanding, but ties seem to have normalised within 100 days of new KL regime. By Seah Chiang Nee
Feb 9, 2004

Few foreigners reacted better to Mr. Abdullah Ahmad Badawi becoming Prime Minister than the people in Singapore.

They had hoped it would ring an end - not to disagreements, which are unlikely ever to completely disappear, but - of an era of bitter quarrels that had preceded it.

When the popular Abdullah took over, there was a 'feel-good' mood among the four million people here, a lot of goodwill for him and hope for better cooperation.

Well, in his first 100 days, he has not been a disappointment to them. He has been pushing all the right buttons.

To begin with, all talk of "skinning" the cat (Singapore) or option of war has stopped.

Pah Lah is, of course, not an unknown figure to Singaporeans.

He is coming across as an honest, low-key person who is more concerned with diplomacy and proper procedures than his flamboyant, tough-talking predecessor.

His break with the controversial past - cancelling major deals with chosen businessmen and grandiose projects - has endeared him to the republic.

The same applies to his appointments of a new reputable police chief and an apolitical deputy finance minister - like his promise to subject public projects to public tenders and battle against corruption.

In general, Pak Lah has come across well with his focused leadership.

After 23 years of a "visionary" Malaysia, Abdullah is emphasising on tackling major everyday problems, like corruption, education and police inefficiencies, which were deteriorating.

But for most Singaporeans it is his diplomacy vis-à-vis their country that matters most.

Ties with their closest neighbour have always figured highly in Singaporean minds.

That has put Malaysia's prime minister only next in importance to their own because it can decide largely how well - or badly - they would live.

One quick indication of improved sentiments can be gleaned from Singapore's querulous chat-sites.

During the height of conflict, many of these forums were abuzz with criticism of Malaysia or its leaders, an obvious reflection of their sentiment.

Today, these vibes have virtually disappeared. At most times, they are more cynical with events in Singapore.

Secondly, Singaporeans are reported to have started buying more Malaysian stocks since Abdullah's takeover because of two reasons - his new reforms and the possibility of a stronger ringgit.

More than five years ago, Malaysia sent investors fleeing with its capital controls and the shutting down of trading of Malaysian share in Singapore.

The Business Times reported last week: "You would have expected Singapore investors to have sworn off Malaysian stocks after the Clob debacle... but surprise, surprise - many are in fact getting back into the country."

Much is due to an expected revalue of the ringgit's peg to the US-dollar - or even its remove - which will give the undervalued ringgit a boost.

The weakening greenback is making the ringgit even more undervalued.

Unlike his predecessor who refused to even consider removing the peg, Abdullah said recently, "We are not dogmatic about this, we are not saying the peg will be there forever."

Singaporeans feel this will increase the value of Malaysian shares and property.
The second reason is Abdullah's economic reforms. If properly implemented, they are likely to bring back global fund managers to Malaysian stocks.

One investor who put in S$5,000 told Business Times: "I feel that foreign investors would warm up to Malaysia as (Abdullah) makes significant changes to the economic and political landscape.

"His emphasis on transparency and meritocracy will win the hearts of foreign fund managers," she added.

Another investor is Mr Victor Lian, 52, a managing had invested more money in Malaysia since November (and again in December) when the regime started. "I do business in Malaysia and am confident that the country will move forward," he said.

But most men-in-the-street have welcomed Abdullah's move towards quiet dialogue to resolve bilateral conflicts instead of confrontation or even arbitration (only as a last resort).

Then came the Chinese New Year celebrations in Johor Baru and Singapore between the two Prime Ministers and their cabinet colleagues, a new chapter in bilateral ties. They added to the improved aura.

But above all is Malaysia's promise to resubmit a new water package. In an apparent concession, Singapore said it would not insist on a package deal to resolve all their disputes.
The feel-good mood is so strong that the government fears a public over-expectation.

While the officials are happy with the turn of affairs, some are taking pain to explain that the improved sentiment, welcomed as it is, does not necessarily mean "everything from now on will now be honky-dory."

That could bring about a massive public disappointment if things fail to go as planned.

But it does mean that the two countries have the best opportunity to build a mutually beneficial future that is free of race or any historical baggage.

The immediate need is, of course, solving the pressing disputes. But a broader long-term future goes beyond these issues.

From Singapore's perspective, it seeks a relationship based on sovereignty and equality, not having to be subservient to a larger neighbour.

This was the message Deputy Prime Minister Lee Hsien Loong's message to Indonesia during his recent Jakarta visit. The "abang-adek" equation often used in Malaysia rankles Singaporean feelings.

On the Malaysian side, the emphasis is on a "special" relationship in which conflicts are be settled through give-and-take, rather than purely on legal contracts that is preferred by Singaporeans.

Many distant foreigners I have met are often at a loss when they are apprised of the "frivolous" issues that divide us - relative to the greater economic and security global concerns.

This happened during a recent forum I attended that included influential participants from the US, Germany, Canada, Japan and Bangladesh, and, of course Singapore and Malaysia.

When the discussions went into the intricacies of our bilateral disputes, an American professor - after patiently listening for a long time - interjected, tongue-in-cheek, "I'm not sure if I should say this.

"I think your two countries - being the richest in Southeast Asia - must be feeling so bored with life that you need to look for excitement in your relationship," he said, amidst laughter.

That's how a much more troubled outside world may be looking at us.

(This article was contribution to the Sunday Star on Feb 8, 2004 to mark Mr. Abdullah Ahmad Badawi's 100 days as premier.)