Malaysia has been bad news for Singapore for most of the past year. And, things could be about to get worse. For starters, the role of Singapore- based banks in the alleged embezzlement of funds related to 1Malaysia Development Bhd could be about to get an airing. Meanwhile, sinking oil prices could continue to hammer the ringgit, drawing businesses across the Causeway in search of cost efficiencies.

On Jan 30, the authorities in Switzerland said their probe into 1MDB had found some US$4 billion ($5.6 billion) may have been misappropriated from Malaysian government-linked companies. They also said they would be formally requesting the assistance of their counterparts in Malaysia in their investigation.

On Feb 1, the Commercial Affairs Department and Monetary Authority of Singapore responded to media queries with a statement that began with: “Singapore does not tolerate the use of its financial system as a refuge or conduit for illicit funds.” CAD and MAS also disclosed that they had “seized a large number of bank accounts” since they began their investigations in the middle of last year into “possible money- laundering and other offences”.