The much improved atmosphere between the two neighbours arising out of the leadership change in Malaysia has resulted in a resurgence of economic activities among not only government-linked companies but also companies in the private sector. In some instances, the heightened cross-border business activities were facilitated by direct economic cooperation between the two governments. One example is the Mutual Recognition Agreement signed by Singapore and Malaysia in November 2004 that would allow billions of dollars in telecommunications products, including cellphones, to be sold in each other's country more cheaply and to hit the market faster. Products already checked in either country will no longer be required to be tested again, thus making it easier for companies to trade such items across the border. The agreement, to take effect in 2008, will cover products such as radio, global systems for mobile communications (GSM), integrated services digital network (ISDN), and public switched telephone network (PSTN). Present in the agreement signing were Lee Boon Yang, Minister for Information, Communication and the Arts and Lim Keng Yaik, Minister for Energy, Water and Communications, who urged companies in both countries to work together to enter the growing markets in the region.

Consequent on the much improved bilateral ties between the two countries, the Malaysia-Singapore Forum 2004 was held on 13 December 2004 in Singapore. The theme of the forum was “New Leadership, New Challenges and New Opportunities” aimed at enhancing cooperation among businessmen and corporations of both countries. It was organized by the Asian Strategy and Leadership Institute (ASLI) in conjunction with the ASEAN Business Forum and Money World Asia. The joint opening address entitled Deepening Business and Economic Cooperation between Malaysia and Singapore was delivered by Lim Hng Kiang, Singapore's Minister for Trade and Industry, and Mustapa Mohamed, Minister in the Prime Minister's Department, Malaysia. Forums of this type are instrumental in helping to spawn networking opportunities for business delegates and foster greater understanding of bilateral problems and issues.