In this kind of discussion, you cannot disentangle the fate Singapore from Malaysia. The comparison between the two is interesting.

When Singapore was squirted out from Malaysia in 1965, it had no natural resources, surrounded by hostile Muslim nations ( though not as bad as Israel, but still), and no one to depend on, except themselves.

The Malaysian Ringgit vs Singapore dollars was 1 to 1 back then in 1970s. And now it's 3.1 to 1. This alone is a testament how far Singapore has come.

One important factors separating Singapore and Malaysia is Malaysia's affirmative action (or quota system) that favors the majority, the Malay Muslims, which gives preference to Malay and Islam in all things including tertiary education, GLC opportunities. If you want to get listed in Malaysia stock market you need to have certain quota reserved for the Malays. It was supposed to ensure social justice and diversity, equality and inclusivity for everyone; why should Chinese monopolize all the opportunity to make money and leave Malays poor? This was so unfair.

This affirmative action was started in 1970, after the famous May 1969 racial riot incident. The argument was the riot happened because that the Malays were badly left behind by circumstances; they suffered so much injustice that they had to release it out on others, and the government must do everything to improve their socioeconomic status, lest the same thing happened again. It originally lasted only 30 years but in 2000, the government deemed that the Malays need more help still, and so it's still in effect today.

The affirmative action initiative by Malaysia government would have made any DEI adherents proud for it's thoroughness. Yet when you look at the results you must have wondered whether we did anything wrong. For if it was done right then why, by the affirmative action supporters own admission, the gap didn't close? And why Malaysia lagged so much behind Singapore? And how much minorities were driven away-- and many of them went to Singapore, to contribute to the economy there-- precisely because of affirmative action?

TBH if the government didn't implements these racial policies, I think Malaysia will be worst off - it will stuck in a civil war between the races like many other countries.

But I do think many of those policies are no longer needed - many of the Malays are more educated and smarter compared to 50 years ago. Right now those policies likely doing more harm than good - driving brain-drain and limiting economy growth, but any government try to remove those policies is just suicidal.

>surrounded by hostile Muslim nations ( though not as bad as Israel, but still)

What a bizarre non-sequitur.