The two countries completed the fourth round of talks on Feb 27 and plan to meet again this month on the issue, Yeo said in Parliament today, Mar 2.

``These negotiations have made progress towards an appropriate balance of benefits for both sides,'' he said. ``However, as negotiations are now in a delicate stage, it will not be useful for me to publicize the details.''

Yeo's comments signal that Malaysia will allow more time for talks with Singapore on the new bridge joining the two Southeast Asian nations, which were briefly united in a federation in the 1960s. Statements by Malaysia last month that it would start work without a bilateral agreement sparked concern that ties between the two countries may deteriorate.

Last month, Malaysia's Foreign Minister Syed Hamid Albar said Malaysia would start work even if its neighbor didn't approve the project.

Singapore and Malaysia were united from 1963 to 1965 until the city-state was expelled from the Malay Federation. The two have had recurring disputes over issues such as the price of water supplied by Malaysia and treated by Singapore and the location of Malaysia's railway station in the city-state.

The Southeast Asian nations have been stepping up efforts to resolve differences since Malaysia's Abdullah Ahmad Badawi became prime minister in October 2003, and Lee Hsien Loong became Singapore's leader the following year.

``Our relations with Malaysia are good,'' Yeo said. ``They rest on the bedrock of common history and common interests.''

Both settled a dispute over land reclamation in the straits separating them in April last year and their stock exchanges have agreed to form an alliance. Singapore government investment units have bought stakes in companies such as Telekom Malaysia Bhd. and Malaysian Plantations Bhd.

                                                      Home