Singapore President Tharman Shanmugaratnam acknowledged on Wednesday, July 15, 2026, that some Singapore businesses would lose out as economic integration with Malaysia deepens. Speaking at the conclusion of his four-day state visit to Malaysia, he described this as a mature perspective on the bilateral relationship, noting that "with the larger win, there will be some losses."

Initiatives such as the Johor-Singapore Special Economic Zone (JS-SEZ), established in 2025, and the Johor Bahru-Singapore Rapid Transit System (RTS) Link are expected to strengthen economic complementarity between the two countries by facilitating investment, talent flows, and cross-border business activity.

Mr. Tharman emphasized that while some service industries in Singapore may lose out due to closer ties with Johor, others will gain, and overall, both countries will benefit. He also highlighted the importance of ASEAN cooperation, stating, "It is in the national interests of each ASEAN member state that we join forces on green energy, in processing power, and in the digital economy," which would help the region navigate a fragmented global landscape.

On international issues, Singapore and Malaysia remain closely aligned, supporting the United Nations Convention on the Law of the Sea (UNCLOS) and advocating for safe transit through the Straits of Malacca and Singapore without tolls or fees.

Mr. Tharman further stressed the need to diversify trading links to avoid geopolitical pressures forcing countries into either a US-led or China-led bloc.

During his visit, he met with Malaysia's King Sultan Ibrahim Sultan Iskandar and Prime Minister Anwar Ibrahim, discussing topics including food security, energy, geopolitical developments, and economic partnership.

Sources