Singapore, Malaysia discuss how to progress on ‘outstanding bilateral issues’ during Anwar’s visit

SINGAPORE and Malaysia inked three agreements for cooperation in the digital economy, green economy and cybersecurity during Malaysian Prime Minister Anwar Ibrahim’s first official visit to the Republic on Monday (Jan 30).

At the official lunch for Anwar held at the Istana, Singapore Prime Minister Lee Hsien Loong said they had a fruitful discussion, including on how to make progress on “outstanding bilateral issues” – though he did not name specifics.

Calling PM Lee a friend, Anwar said in his toast speech that both leaders had “very substantive discussions”. These were “not normal diplomatic cliches” but “more contentious standing issues”, he said. “No issue should be left unsolved. We should try and do our utmost to enhance our relations and work together for the benefit of both countries.”

This includes not just problems that both sides have “tried to work out”, but also those under the three agreements, such as emerging technologies and food security, he added. “This is an area (in) which I think Malaysia would solicit the support of Singapore, to use Malaysia as a heartland to produce for the benefit of Malaysia and Singapore.”

Adding remarks in Malay, Anwar assured PM Lee that both countries can work together in multiple domains for mutual benefit, and learn from each other. This includes in housing, where he acknowledged some recent controversy, but added that Malaysia did not consider it an issue. Malaysian officials recently received flak for consulting Singapore’s Housing and Development Board on housing matters.

Anwar said he and his team are committed to good relations with Singapore: “You can rest assured that not only do we want to continue relations, but we want both Singaporeans and Malaysians to understand and appreciate that these are two great countries and great neighbours that could do so much more for the benefit of our people.”

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Said PM Lee: “As close friends and neighbours, the destinies of Singapore and Malaysia are intertwined. When we work constructively together, we produce win-win outcomes with tangible benefits for our peoples and businesses.”

He added that he is confident that Singapore-Malaysia relations can reach greater heights with Anwar’s support.

Noting that Anwar is “no stranger to Singapore”, PM Lee said they both go “a long way back” and have stayed in touch since first meeting as ministers.

The two last met when Anwar visited in 2018 for the Singapore Summit. Anwar said then that Singapore would be one of the first countries he visited if and when he assumed the premiership, recalled PM Lee. “Therefore I’m very glad that today, Ho Ching and I can welcome Prime Minister Anwar and his wife, Dato’ Seri Dr Wan Azizah, to Singapore.”

Singapore is Anwar’s third official visit – after Indonesia and Brunei – since taking the helm in November.

Earlier that morning, he received an official welcome at the Istana, and had an orchid named after him and his wife. He then called on President Halimah Yacob before his meeting with PM Lee.

At the lunch, PM Lee said Singapore and Malaysia share a relationship “quite unlike any other”, bound by geography, a shared history, as well as deep family and cultural ties.

Both countries are each other’s second-largest trading partner, and Singapore is the largest foreign investor in Malaysia with over S$56 billion in direct investments. “This reflects our confidence in the Malaysian economy, including the ‘can-do’ spirit and enterprise of many young and digitally savvy Malaysians,” he said.

He added that the Singapore-Malaysia partnership stood up to the test during the Covid-19 pandemic, as ministers and officials kept in “close touch” to allow the flow of people and goods, even when global supply chains were disrupted.

PM Lee then invited Anwar back to Singapore for their annual Leaders’ Retreat later this year.

Shortly before lunch, both leaders witnessed the signing of the three agreements. Two of these were Frameworks of Cooperation (FoC) in Digital Economy and Green Economy, between Singapore’s Ministry of Trade and Industry and Malaysia’s Ministry of International Trade and Industry.

The FoC in digital economy will enhance bilateral cooperation beyond existing agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Regional Comprehensive Economic Partnership.

For example, it will cover the digitalisation of the entire trade process; interoperable mechanisms to protect personal data in cross-border data flows; and more efficient and secure e-payment systems.

In a statement, Singapore’s Ministry of Foreign Affairs said the FoC will unlock new growth opportunities and potentially serve as a “pathfinder” for digital economy cooperation within Asean.

Preliminary discussions are underway on possible bilateral projects, including one on corporate digital identities, as a proof-of-concept for the Asean Unique Business Identification Number Network system.

In the area of green economy, Singapore and Malaysia seek to strengthen collaboration to decarbonise their industries while enabling businesses and workers to seize opportunities. The FoC in green economy covers next-generation mobility, low-carbon solutions and carbon credits.

For example, both countries may work together on electric vehicle (EV) and autonomous vehicle standards, as well as on EV charging standards and the deployment of EV charging points.

They are also looking at joint studies on low-carbon solutions, such as hydrogen and carbon capture, as well as collaborations between Singapore and Malaysia companies in voluntary carbon credits projects.

The third agreement is a memorandum of understanding (MOU) on cooperation in personal data protection, cybersecurity and digital economy. This facilitates the exchange of knowledge in areas such as data protection policies, cross-border data flows, addressing common security threats, and emerging technologies such as artificial intelligence and distributed ledger technology.

Separately, the Singapore Chinese Chamber of Commerce and Industry (SCCCI) and the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) also inked an MOU that evening to “significantly strengthen” collaboration to enhance economic relations between both countries.

Both chambers will collaborate in the areas of energy, sustainability, food security and resource sectors to strengthen the resilience of their economies. They will also mutually assist their members to venture into Asean markets.

The signing was witnessed by Singapore’s Trade and Industry Minister Gan Kim Yong and Malaysia’s International Trade and Industry Minister Tengku Zafrul Aziz at Shangri-la Hotel.

At the signing ceremony, SCCCI president Kho Choon Keng said it is timely for the two chambers, after years of strong and close friendship and trust, to upgrade their partnership and cooperation. This would enable them to play a greater role in enhancing economic relations and friendship between the two neighbours, he said.