Chart of the Day: A history of volatile bilateral trade between Malaysia and Singapore

The HSR could help hasten strong bilateral ties.

Malaysia-Singapore relations have been far from smooth, with bilateral trade reaching record lows as of late.

According to a report by BaML, this is not a big worry, as crossborder investment clearly increased significantly since 2003, when PM Badawi took over.

As for the high-speed rail link, progress has been slow, but the upcoming leaders meeting in May will hopefully offer more concrete signs of a deal.

Politically, the high-speed train which will stop at 1MDB's Bandar Malaysia sitewill help PM Najib rescue and lift 1MDB asset values.

Historically, Dr Mahathir’s proposed “crooked bridge” to replace the causeway was the epitome of Malaysia-Singapore’s tense relationship. BaML says that only when PM Badawi took over the premiership in 2003 was there a warming of bilateral ties.

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