Malaysia is the most important country in term of foreign policy for Singapore, with whom it has a special and symbolic relationship.
In August 1995 , the two countries signed the Straits of Johor Boundary l Agreement precisely delimiting the maritime boundary of the two countries.
Any instability in Malaysia and Indonesia is perceived by Singapore as external threat.
Singapore's security concerns have included its dependence on Malaysia for water supplies.
Singapore is Malaysia's second leading investors after Japan mostly in food processing, transportation equipment, textile and garment.
The two countries have agreed upon a number of projects:-
projects to meet 30-50% of Singapore's energy need in 1990s
through piping liquefied gas extracted off the Terengganu coast.