The Singapore government is well aware of the historical linkages that it had with the Malaysian hinterland. The legacy of British colonization, membership in the Straits Settlements, and subsequent brief membership in the Malaysian federation are historical artefacts. Although these artefacts have become much less important over time, they have had a formative influence on Singapore's perception of its bilateral relationship with Malaysia. It would not be an exaggeration to suggest that historical developments have had a significant overhang on the bilateral relationship. The dense transactionalism between the two states in a variety of issue areas continues to ensure that both countries are important to each other, regardless of the generally negative influence of the historical overhang. Singapore's desire to articulate sovereign independence in policy formulation, both in politics and foreign policy, is as much a function of its previous stresses in the bilateral relationship as the desire to assert its independence as a new state in the region.

POLITICS

Within the realm of politics, there are four clusters of factors that can bear positively or negatively on the bilateral relationship or perceptions of it. These are geographical and historical considerations, ethno-religious issues, developmental plans and designs, and political leadership. The first two of these factors are reasonably static considerations in that they are embedded within the bilateral relationship. The latter two, on the other hand, are much more fluid since they are subjected to change and their impact is sometimes not clearly discernible. Hence, there is a real sense in which the latter two considerations are much more dynamic, and consequently, their impact may be positive or negative, depending on the situation. History, geography, and ethno-religious considerations, on the other hand, have generally tended to bear negatively on the relationship.

Geographically, the fact remains for Singapore that Malaysia is not only its immediately adjacent neighbour with a large hinterland, but that the physical endowments between the two countries are significantly disproportionate. Malaysia is almost sixty-four times larger than Singapore in land area and has a population base that is almost six times larger. This differential is exaggerated by the fact that historically, Singapore had developed in relation to Malaysia. In contrast, Singapore has a land area of only 660 square kilometers and a population base that is marginally in excess of four million people, including foreign workers.