Malaysian currency, RM, has strengthened against the Singapore dollar passing the psychological mark of RM3 to S$1 on Friday (Feb 8). The new democratic Malaysian government has also improved the country’s economy significantly after Malaysians ousted former dictator Najib Razak.
According to the new Malaysian authorities, Malaysia is expected to see a 4.5% GDP growth in 2019, surpassing Singapore’s 2.5%-3% growth expectation for 2019.
The improving economy of Malaysia pose a new growth model to Singaporeans, who are mostly still under the false impression a strong dictatorship is good for economic growth.
In the past 15 years under dictator Prime Minister Lee Hsien Loong, Singaporeans have only seen “paper growth” in GDP figures while the quality of living declined. The cost of living in Singapore has been out of control, putting Singapore as the world’s most expensive city for 5 consecutive years according to the Economist Intelligence Unit.
Singapore’s economic growth was built on the relentless influx of foreigners, and the country reached its population limit a rapid increase from 4 million to 5.7 million in 18 years.
Public infrastructures are overstrained with the country’s public trains seeing persistent and frequent breakdowns due to overpopulation.
Singaporeans will however be getting a chance to reverse the economic disaster with a coming General Election, that is expected to take place this year. The ruling party dictatorship is likely to lose governance considering the amount of bitterness built from numerous domestic issues from cost of living to HDB housing lease and the CPF retirement fund.