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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