KL needs new strategy for S'pore

KL needs new strategy for S'pore

Azmi Hassan, Professor, Universiti Teknologi Malaysia, The Strait Times,
Asia News Network, Singapore

The leadership transition in two neighboring countries, Malaysia
and Singapore, is taking place as if there is agreement between
the two heads of government.

Malaysian Prime Minister Mahathir Mohamad will be
relinquishing his post to Abdullah Ahmad Badawi this October.

This is not a surprising scenario because ever since Abdullah
became Deputy Prime Minister, Malaysians have known he is the
most qualified to succeed Mahathir.

In Singapore's case, it is a little unique as the leadership
selection process is planned in detail to ensure that the
decision is carried out smoothly.

When former Prime Minister Lee Kuan Yew relinquished his
position in 1990 to Goh Chok Tong, many thought that this was
just a shadow or temporary appointment to warm the seat before
the reins were handed over to Lee's son, Lee Hsien Loong.

The perception was reinforced by the appointment of Lee Kuan
Yew as Senior Minister in Goh's Cabinet.

Now after 13 years, the assumptions are borne out.

When delivering Singapore's National Day Rally speech, Goh
discussed openly his successor, Deputy Prime Minister (DPM) Lee
Hsien Loong. There is a huge possibility that he will take over
from Goh as PM in 2005, two years before the General Election is
due to be held. Goh said because the new leader would need time
to win the people's trust and confidence, a power transition
should be carried out earlier.

Just like how the leadership styles of Mahathir and Abdullah
are different, the leadership styles of Goh and DPM Lee are also
different.

Goh's leadership is considered friendlier and he is willing to
accept the views of others, unlike the senior Lee who is seen as
more firm and hard. Although DPM Lee may not share all of his
father's leadership characteristics, he is also said to be firm
and hard. And unlike Goh's technocrat background, the younger Lee
has wide experience in the military field. Before entering
politics in 1984, he was in the Singapore Armed Forces (SAF) for
13 years and retired as a Brigadier-General.

Just as Singapore has likely drawn up a strategy to deal with
Abdullah as the future PM of Malaysia, Malaysia too should draw
up a strategy to deal with the younger Lee.

This is because the strategy practiced in Goh's era may not
work any more.

If we were to study Malaysia's way of handling problems
arising from the water pricing issue and the Gerbang Selatan
Bersepadu development project, basically Malaysia is on the right
track.

Malaysia's decision to resolve the water pricing problem via
arbitration is wise; if the issue is left to drag on, especially
when the younger Lee becomes PM, Singapore would likely continue
to enjoy water at three cents per 1,000 gallons until 2061.

Malaysia's decision to proceed with the GSB development
project without Singapore, and the construction of a crooked
bridge to replace the Malaysian side of the Causeway, is seen as
a classic strategy in dealing with Singapore's new leadership.

The RM 1.1 billion (Malaysian ringgit) GSB project involving
the construction of the Customs, Immigration and Quarantine
complex (CIQ), JB Sentral Terminal, and the road and rail bridge,
are critical, not just for Johor's economic progress, but also
for that of Malaysia.

Singapore will be in an uncomfortable position when GSB's
construction is fully completed.
This is because the demolition of the Malaysian side of the
Causeway will be good for Johor's two main ports -- Pasir Gudang
Port and Port of Tanjung Pelepas -- as cargo movement between the
two ports will be more efficient along the sea-lane.

However, what is more important is that GSB's development can
restore the echo-system at the Tebrau Straits, with water flowing
more freely. This is critical in determining the success of the
Danga Bay and Lido Beach projects.

Both projects take up 1,600 hectares, and have the ability to
turn Johor Baru town into a beautiful waterfront city like those
of Sydney, San Francisco, Vancouver and Venice.

Singapore does not want this to happen as it may be
detrimental to the Republic's economy if too many Singaporeans
flock to Malaysia.

According to a periodic survey by Singapore Press Holdings,
after Australia, Malaysia is the second-most popular destination
for Singaporeans wanting to emigrate after they retire.

This scenario may be similar to what happened in Hong Kong.

China's Shenzhen, which is close to Hong Kong, is the main
attraction of Hong Kongers who like shopping and food.

Although various restrictions were imposed, making it
difficult for Hong Kongers to visit Shenzhen, the efforts failed
as the attraction was too strong. What happened in Hong Kong's
case may also happen to Singapore.

This is something which the future leadership of Singapore may
have to face.

With 85,000 unemployed Singaporeans -- unemployment rate at
4.5 percent -- and the losses suffered by Singapore's two
economic pillars, Singapore Airlines and PSA Corporation, it is
certain Singapore's future leadership will draw up several
strategies to prevent money from flowing out.

Soon, Malaysia will face various pressures and intense
competition from Singapore as the leaders there will do anything
to salvage their national economy from plunging.

Malaysia should be prepared to face this challenge.

The writer is journalist of Berita Harian (Malaysia).