SINGAPORE, Aug. 26 (UPI) -- The headlines may not show it and there still remain many unresolved issues, but there has been a definite thawing of the relations between Singapore and Malaysia.
"There is a lot happening behind the scene, a lot going on unreported," Dato N. Parameswaran, Malaysia's High Commissioner to Singapore, told the Foreign Correspondent Association on Wednesday.
Some of the improvements may seem minor, like officials holidaying in each other countries, or the recent removal by the Malaysians of a two-decade-old signboard saying "Welcome to Malaysia" on a train station Malaysia still owns in downtown Singapore, but they are steps in the right direction.
Next week, the Malaysian High Commission in Singapore will start outsourcing its visa-processing work to about 30 travel agents here, which will create a new tourism synergy between the two countries. Every week, the High Commission receives about 1,000 applications for visas from Indian and Chinese visitors who have to queue for two days for the documents. On the eve of public holidays, the queue can stretch to as long as 600 applicants. Parameswaran believes the move will make both countries winner from a potential influx of tourists.
One tangible result of the improvement in bilateral relations has been the recent flurry of investment activities on both sides of the Malacca Straits. "What is happening now in terms of investments could not have happened before," Parameswaran noted.
Earlier this year, Temasek Holdings, the Singapore government's investment arm, bought the equivalent of a 5 percent stake in Telekom Malaysia. This was a significant step, as the sector had long been considered a strategic one by the Malaysian government. Temasek is now eying a stake in Malaysian Plantations, whose crown jewel is Alliance Bank, while Singapore PSA Corp, which it owns, is also in talks to buy a stake into a subsidiary of four-year-old Port of Tanjung Pelepas (PTP), Parameswaran said.
"There is also possibility of some kind of collaboration with (budget carrier) AirASia in the future, as it was discussed in the past," he added, noting that the Malaysian budget carrier had built a web of ties with Singaporean companies (in which Temasek are shareholders), borrowing from DBS Bank and selling through Singapore Telecom.
Meanwhile, the Government of Singapore Investment Corporation, or GIC, recently acquired a 5 percent stake in Shell Refining Company (Federation of Malaysia), as well as 5 percent of construction powerhouse Gamuda. Last year it had taken a 5 percent of UMW, which distributes Toyota cars in Malaysia.
GIC Real Estate has also acquired a 70 percent interest in Johor Bahru City Square, a prime shopping centre.
And investment is not just led by the public sector. Malaysian conglomerate Sime Darby is trying to take a 29 percent stake in Singapore shipbuilding and chartering firm, Jaya Holdings.
Despite tensions over the last two years between the two countries, which have argued over Singapore's land reclamation near the Malaysia border or the ownership of the island of Pedra Blanca, they have always maintained close securities relations. "What has kept this relationship going for a long time is the relationship we have between the police and the military," Parameswaran said.
Whether fighting transnational crimes, piracy or terrorism, the two countries are always closely working together, he noted. Most recently, the two neighbors along with Indonesia agree on working out year-round joint naval patrols in the Straits of Malacca to fight piracy and terrorism.
Parameswaran acknowledged that problem between the two countries still remained. Outstanding issues include the matter of water supply from Johor, which revolves around price, Malaysian railway land in Singapore leftover from the British colonial rule, the relocation of the Malaysian Customs, Immigration and Quarantine facilities in Singapore, and the Singaporean Central Provident Fund savings of West Malaysians.
Parameswaran thought the latest issue was the easiest to solve and hope that in "the spirit of friendship" that is developing the Singaporean authorities would soon review this issue. "If they want to resolve this issue they can do it at the stroke of a pen," he noted.
The thawing of relations partly reflects the change of personalities at the top. While Malaysia former Prime Minister Mahathir Mohamad had sometimes difficult relation with its neighbors, its successor Abdullah Badawi has been quick to establishing closer ties with his then-Singapore counterpart, Goh Chok Tong.
Parameswaran said progress was continuing under Singapore's new Prime Minister Lee Hsien Loong.
