26 June, 2020

Quora Answer: Will an Independent Johor Benefit Singapore?

The following is my answer to a Quora question: “Will an independent Johor benefit Singapore?

An independent Johor would likely be friendlier to Singapore than Malaysia is for economic reasons.  Singapore is one of the largest investors in Johor, Singapore has put in more money into Johor since independence than the Malaysian federal government has.

Johor competes with Selangor in being the most industrialised state in Malaysia.  It competes with Sarawak as the wealthiest state.  The federal government system effectively means that revenue from Johor subsidises other states such as Pahang, Kelantan and Kedah.  An independent Johor no longer has to subsidise less developed regions of Malaysia, and would potentially grow faster.  This economic growth benefits Singapore because the value of our investments in Johor grows.  This accelerated economic growth also benefits us because it means that Johor grows as a market for our goods and services.  Johor and Singapore have a natural synergy because of how their respective economies are structured.  Johor is the effective manufacturing and agriculture sector, while Singapore is the logistics, banking and finance hub.

Economics aside, Johor functions as an effective buffer state between Singapore and the rump Malaysia.  This increases our security since it creates strategic depth without the need for Singapore to consider occupying southern Malaysia in the event of a military conflict.



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