Malaysia finance minister Lim Guan Eng said that it is time Malaysia beat Singapore at its own game and gave the island nation healthy economic competition.
He noted that Malaysians and the government needed a can-do spirit to excel against its southern neighbour.
I wish to identify some of our strengths and weaknesses in this healthy competition.
Singapore's strength:
a) Critical mass of business within a small geographical area
b) Better business connection and connection within the region and globally.
c) Stronger financial resources.
Singapore's weaknesses:
a) High cost of doing business
b) High dependence on "foreign talents"
c) A rigid approach to doing business and lack of creativity
How will we fare in this competition?
I think Malaysia will fare better because they are leaner, hungrier and more entrepreneurial. They will beat us over a period of 5 to 10 years. Even the foreign investors will find Malaysia a better place to invest in.
What can Singapore do? We have to address our weaknesses. We should improve efficiency and cut wastage. We should reduce our cost of doing business. We have to adopt a more flexible approach.
What if we fail? This is not a serious problem. Some of the talents and business will flow to Malaysia. It has been flowing to Singaopore over the past three decades. It is time for the flow to reverse.
If that happens, there is still a good side. Our cost of living and cost of housing will drop. We will not be overcrowded. The exchange rate will move from 3 to 1 to perhaps 1.5 to 1.
Some Singaporeans will move to work in Malaysia. Why not? They have more space and the quality of life might be better.
He noted that Malaysians and the government needed a can-do spirit to excel against its southern neighbour.
I wish to identify some of our strengths and weaknesses in this healthy competition.
Singapore's strength:
a) Critical mass of business within a small geographical area
b) Better business connection and connection within the region and globally.
c) Stronger financial resources.
Singapore's weaknesses:
a) High cost of doing business
b) High dependence on "foreign talents"
c) A rigid approach to doing business and lack of creativity
How will we fare in this competition?
I think Malaysia will fare better because they are leaner, hungrier and more entrepreneurial. They will beat us over a period of 5 to 10 years. Even the foreign investors will find Malaysia a better place to invest in.
What can Singapore do? We have to address our weaknesses. We should improve efficiency and cut wastage. We should reduce our cost of doing business. We have to adopt a more flexible approach.
What if we fail? This is not a serious problem. Some of the talents and business will flow to Malaysia. It has been flowing to Singaopore over the past three decades. It is time for the flow to reverse.
If that happens, there is still a good side. Our cost of living and cost of housing will drop. We will not be overcrowded. The exchange rate will move from 3 to 1 to perhaps 1.5 to 1.
Some Singaporeans will move to work in Malaysia. Why not? They have more space and the quality of life might be better.
Tan Kin Lian
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