Singapore Helping her ASEAN Neighbors Develop their Economies

1979 Words 8 Pages
Discuss the role Singapore can play in helping her ASEAN neighbours develop their economies, and how this can benefit Singapore in the long run.

The ASEAN community consist of member countries Singapore, Malaysia,
Indonesia, Philippines, Thailand, Cambodia, Vietnam, Brunei
Darussalam, Laos and Myanmar, whose collective will is through cooperation and friendship and through joint efforts and sacrifices, secure for their peoples and for posterity the blessings of peace, freedom and prosperity. Upon the foundations as a major maritime and air transportation hub for the region, Singapore has developed as an
“international financial capital”. At the same time, it is still highly dependent on its neighbours due to its inherent
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Development of the Brunei economy through Singapore’s demand for oil is highly likely to increase, with it being a viable substitute in the light of growing problems with the oil-exporters of the Middle East.

The importing of other natural resources comes in the form of water.
While this recognizably has reduced in demand with the new desalination plants and Newater plants in Singapore, this is still a booster to the Malaysian economy. The pipelines ensure political peace between the two nations and as a clause of the water agreement, this has resulted in improved infrastructure in Malaysia, through the construction of the Second Link and a third Causeway in the near future. This promotes high accessibility between the two nations and good transportation links would promote increased Malaysian exports.

With regards to Malaysia, other forms of trading also help to promote the Malaysian economy. No doubt despite Singapore’s limited domestic demand, the import demand is relatively low but still substantial.
More importantly, Singapore’s flexible exchange rates act as an automatic stabilizer for Malaysia, who works on a fixed exchange rate packed to the US exchange rate. Therefore in recent times when the
Malaysian ringgit has depreciated with the devaluation of the US dollar, exports to

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