S'pore GLCs may create next investment wave in Malaysia

IMPROVING bilateral political ties may lead to a "next wave of investments" by Singapore government-linked companies (GLCs) in Malaysia, said US investment bank Citi in a report.

Economist Kit Wei Zheng said the importance of bilateral economic relations had waned since the 1990s and Singapore investments in Johor's Iskandar Malaysia were a mere 4.7 per cent of total investment commitments in the Iskandar Development Region.

"Although Singapore investors remain sceptical, improved political ties and Malaysia's recent modest success in improving perceptions of its competitiveness may raise the potential," he said.