Singapore and Malaysia have a long history of cross-border commerce, as they share a land border and have established strong trade relationships over the years. There are several ways in which commerce is conducted between the two countries:
- Road transportation: The land border between Singapore and Malaysia is one of the busiest in the world, with thousands of vehicles crossing each day. Many goods are transported by road, including food products, electronics, and other manufactured goods.
- Sea transportation: Singapore is a major port city, and many goods are imported into the country via sea transportation. There are several ports in Malaysia that are well-connected to Singapore, including Port Klang and Pasir Gudang.
- Air transportation: Singapore and Malaysia are both served by major airports, and air transportation is often used for time-sensitive goods, such as perishable items or high-value electronics.
- E-commerce: With the rise of e-commerce, many businesses in Singapore and Malaysia are now conducting cross-border commerce online. Online marketplaces such as Lazada and Shopee are popular in both countries, and many businesses use these platforms to sell their products to consumers in the other country.
Overall, cross-border commerce between Singapore and Malaysia is an important part of both countries’ economies, and is likely to continue to grow in the coming years.
Singapore investment in Malaysia
Singapore is one of the largest investors in Malaysia, with a significant presence in a variety of sectors. Some of the major areas where Singaporean companies have invested in Malaysia include:
- Manufacturing: Singaporean companies have invested heavily in Malaysia’s manufacturing sector, particularly in electronics and semiconductor manufacturing. This has helped to establish Malaysia as a major player in the global electronics industry.
- Real estate: Singaporean companies have also invested in Malaysia’s real estate sector, particularly in luxury residential and commercial properties in Kuala Lumpur and other major cities.
- Infrastructure: Singaporean companies have been involved in major infrastructure projects in Malaysia, such as the Kuala Lumpur-Singapore High-Speed Rail project, which was ultimately cancelled, and the Johor Bahru-Singapore Rapid Transit System project, which is currently under construction.
- Banking and finance: Singaporean banks have a strong presence in Malaysia, with major players such as DBS and United Overseas Bank (UOB) operating in the country.
Overall, Singaporean investment has been an important source of capital and expertise for Malaysia, and has helped to drive economic growth and development in the country. Despite occasional political tensions between the two countries, the business relationship between Singapore and Malaysia is likely to remain strong in the long term.
How many people live in Malaysia, work in Singapore
The number of people who live in Malaysia and work in Singapore is difficult to estimate accurately, as there are no official statistics available on this specific group of workers. However, it is known that there is a significant number of Malaysians who commute to Singapore for work on a daily basis.
According to a report by the Straits Times in 2021, an estimated 300,000 Malaysians cross the border into Singapore each day for work. Many of these workers are employed in sectors such as construction, manufacturing, and services, and are attracted by higher salaries and better job opportunities in Singapore.
The Singapore government has implemented various measures to manage the influx of foreign workers, including Malaysians, into the country. These include quotas on foreign workers in certain sectors, as well as restrictions on the length of time that foreign workers can stay in Singapore.
Despite these measures, the number of Malaysians working in Singapore is likely to remain significant, given the close proximity of the two countries and the strong economic ties between them.
Investment opportunities in Malaysia and projected growth
Malaysia offers a range of investment opportunities across different sectors, including:
- Manufacturing: Malaysia is a major manufacturing hub in Southeast Asia, with strengths in electronics, automotive, and aerospace industries. The country has a well-established supply chain and a skilled workforce, making it an attractive location for manufacturing investments.
- Infrastructure: Malaysia has ambitious infrastructure plans, including the construction of new highways, rail lines, and ports. The government is also investing in renewable energy and digital infrastructure, offering opportunities for private investment.
- Tourism: Malaysia has a rich cultural heritage, diverse natural landscapes, and a strong tourism industry. The government has identified tourism as a key growth sector, with plans to develop new tourist destinations and increase visitor numbers.
- Healthcare: Malaysia has a growing healthcare industry, with demand for healthcare services expected to increase due to an ageing population and rising healthcare costs. The government is encouraging private investment in healthcare facilities and services to meet this demand.
In terms of projected growth, Malaysia’s economy is expected to rebound strongly in 2021 and beyond, following the COVID-19 pandemic. The International Monetary Fund (IMF) projected a GDP growth rate of 6% for Malaysia in 2021 and 5.2% in 2022. The government has also announced a range of stimulus measures to support economic recovery and attract investment.
Overall, Malaysia offers a range of investment opportunities across different sectors, with the potential for strong growth in the coming years. However, like all investments, there are also risks associated with investing in Malaysia, such as political and regulatory uncertainty, as well as currency and market fluctuations. It is important for investors to conduct thorough research and due diligence before making any investment decisions.