Quora Answer: Has Singapore Meddled to Prevent Malaysia becoming a Global Financial Hub?

The following is my answer to a Quora question: “Has Singapore indirectly meddled in Malaysian politics and economic development to ensure that Malaysia will not catch up with Singapore, and become a global financial hub?”

Firstly, all nations meddle indirectly, or sometimes, directly, in the affairs of their neighbours.  When Mahathir bin Mohamed urged Singaporeans to vote in a new government, was he not interfering with our electoral process?  How is that surprising?

Secondly, it would not benefit Singapore to hold back the economic development of its neighbours.  When the nations of Southeast Asia develop, they move up the value chain, and enhance the investment prospects of the region.  Nobody wants to live in a poor neighbourhood.

Thirdly, Malaysia is not going to be a global financial hub anytime soon, and it has nothing to do with Singapore, and everything to do with the fact that Malaysia’s government is dysfunctional, unstable, and corrupt.  When a sitting Prime Minister can loot a development bank of billions, anyone would think twice about putting money there.  When the banking system has credibility issues, when the country has a low investment grade, with the sovereign bonds just above junk status, it obviously does not have the judicial, legislative, and financial infrastructure to be regional financial hub, let alone a global one.

Malaysia’s problems are self-inflicted.  It will take, at least, a generation to fix all of them, to compete with Singapore, London, Tokyo, or New York.  I do not see Malaysia’s political elite having the farsightedness to plan towards such a goal.