Relations with Singapore have become closer in recent years, and during the forecast period we expect this trend to continue, particularly in the area of economic ties. The governments of Malaysia and Singapore no longer bicker constantly over minor issues, although a degree of racially tinged wariness persists. China will become an increasingly important trading partner in the next five years. The Malaysian government's apprehension about China's rise and growing economic influence is mixed with ambivalence towards the ethnic-Chinese members of its own population and an awareness of the need to attract investment. As Malaysia's economic dependence on China grows, uneasiness in Malaysia about Chinese power in South-east Asia is expected to increase.