Singapore GE2025: How it could ripple through Malaysia's economy and politics

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Election campaign posters for the ruling People's Action Party are pictured in Singapore on April 30, 2025. (Photo by Roslan RAHMAN / AFP)

A test for Lawrence Wong, a point of interest for Malaysia

SHAH ALAM - The upcoming general election (GE2025) in Singapore has captured more attention than usual across the Causeway, not simply due to the close economic and cultural ties between the two countries but also due to recent political friction and historical comparisons that continue to shape public sentiment.

While Singapore’s ruling People's Action Party (PAP) is widely expected to retain power, making the actual outcome of the election largely predictable, the growing interest in Malaysia lies in the broader implications of the vote, including diplomatic dynamics, national identity and regional comparisons.

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Singapore's Prime Minister and secretary-general of the ruling People's Action Party (PAP) Lawrence Wong (C) poses with residents of Tampines estate during a campaign event on April 30, 2025 in Singapore, ahead of the upcoming election. (Photo by Roslan RAHMAN / AFP)

According to political analyst James Chin, Malaysia and Singapore used to be one country, and moreover, about half of the Singaporean population has relatives on this side of the Causeway.

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"Malaysia and Singapore used to be one country. It’s not just a cultural connection—it’s deeply personal for many families," he told Sinar Daily.

He said Singapore’s shared heritage with Malaysia and its transformation into one of the most prosperous nations in the region often leads to comparisons between the two countries.

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"Non-Malays in particular feel this acutely. Singapore's meritocracy policy contrasts starkly with the discrimination many feel here. They can’t help but wonder: if Malaysia had taken the same path, would we be just as successful today?" he said.

He also said the economic disparity between the two countries is a constant reminder of the diverging paths.

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"In the 1960s, our currencies were one-to-one. Today, the Singapore dollar is more than three times stronger than the Malaysian ringgit,” he added.

While the PAP’s victory is widely anticipated, James said the focus is on the percentage of votes it will secure.

"It’s not about whether the PAP will win—it’s about how strongly they’ll win. Lawrence Wong is expected to return as Prime Minister, but the question remains whether he can maintain the 60 per cent vote share the PAP achieved in the previous general election," he said.

Meanwhile, political analyst Associate Prof Dr Syaza Shukri from International Islamic University Malaysia (IIUM) said Singapore is Malaysia’s second-largest trading partner and any political changes in the island nation could ripple across Malaysia’s economy.

"Malaysians should care because they are our neighbour and we have very close ties socially and, more importantly, economically as well with Singapore," she said.

For Malaysians, she said understanding Singapore’s political landscape is essential for anticipating its impact on Malaysia’s domestic and foreign policies.

"We need to be up to speed on the local politics and the outcome of the coming weekend election. But we also must maintain our good relationship by not interfering with Singaporean politics and elections as a sovereign nation.

"We must respect Singapore’s sovereignty and allow them to conduct their election as they see fit.

"But staying informed helps us navigate any potential changes in policies or relations," she added.