Malaysia and Singapore need to improve connectivity between both countries to enhance the movement of people as well as goods and services to optimise the benefits from a more open economy going forward.

Connectivity was the main issue raised by International Trade and Industry (Miti) Minister Datuk Seri Mustapa Mohamed during his meeting with his counterpart, Lim Hng Kiang, here, on Wednesday.

"We often hear of the massive congestion at the Johore Causeway and the Second Link which serve as entry points into both countries.

"We understand Singapore's concerns over security and smuggling issues and hope to work towards a solution to resolve the problem of connectivity.

"It needs to be resolved with the widening market access via the ASEAN Economic Community and Trans-Pacific Partnership," he said.

Mustapa told Bernama this at the end of his two-day working visit to Singapore from Tuesday.

He expressed the hope that the issue can be discussed during the Annual Consultation Meeting between Prime Minister Datuk Seri Najib Tun Razak and his Singapore counterpart, Lee Hsien Loong.

According to Mustapa, this year's Consultation Meeting is scheduled to be held in Kuala Lumpur and a date for it is being finalised.

Malaysia and Singapore have a Transportation Links Work Group which continues to cooperate on strengthening transport connectivity.

In a most recent development, Malaysia confirmed that Bukit Chagar would be the terminus location in Johor Baharu to link to Singapore's Woodlands North MRT Station.

Besides meeting with Minister Lim, Mustapa also met with Malaysian banks in Singapore, namely Maybank, RHB and CIMB, as well as Fuji Oil Asia Pte Ltd and the Volkswagen Group.

He also had dialogue sessions with the Japanese Chamber of Commerce and Industry Singapore, Singapore Business Federation Council Members, Trade Association and Chambers in Singapore, the EU-ASEAN Business Council and European Chamber of Commerce Singapore, US-ASEAN Business Council and the American Chamber of Commerce Singapore.

A roundtable discussion with Singapore's "Think-Tanks" was also arranged for the Minister.

As Singapore is an important trading partner to Malaysia within ASEAN, Mustapa led a delegation of more than 40 to the Republic. It comprised 30 companies and officials from Miti.

"There is strong interest among multinationals in Singapore to invest in Malaysia with its big potential. We will continue to promote Malaysia," he said.

On export numbers to Singapore, he expressed confidence that Malaysia can maintain what was achieved last year.

Last year, total trade between both countries was at RM190.6 billion, accounting for 13 per cent of Malaysia's global trade.

Singapore is also Malaysia's second largest trading partner after China, but ranked first in terms of the export market.

Last year, exports to Singapore stood at RM108.5 billion and imports at RM82.1 billion.

Mustapa said he had given an assurance during the roundtable discussion with Singapore's "Think-Tanks" that the government was strong and Malaysia, politically stable.

Also in the delegation to Singapore was the Chief Executive Officer of the Malaysian Investment Development Authority Datuk Azman Mahmud, Senior Director for ASEAN Economic Integration, Datuk P Ravindran and the Malaysia External Trade Development Corporation's Strategic Planning Division Senior Director, Wan Latiff Wan Musa.