50 years ago Singapore had little hope... it was abandoned by Britain, had little skilled labour and no natural resources. Today it's is one of the wealthiest per capita countries in the world. It did this by presenting itself as a stable, reliable and safe destination to successfully attract enormous foreign investment. It's a major transport hub for air passengers and cargo. It's one of the world's biggest shipping and refinery ports. It's a major destination for business travelers and corporate regional head offices. Money pours into Singapore like rain.
But Malaysia is still a 3rd world country... poor, and struggling to compete. Internal civil unrest meant didn't work as hard as Singapore to present a safe, stable and attractive destination for investment in Asia. While Malaysia competes with its developing 3rd world country neighbours, Singapore operates in a completely different league.