Leaders try their hand at bridge-building

MALAYSIA and Singapore have tacitly acknowledged the importance of setting aside contentious issues to boost co-operation as both grow increasingly anxious over events in Indonesia.

Following a meeting on Monday between Malaysian Prime Minister Dr Mahathir Mohamad and his Singapore counterpart, Goh Chok Tong, the two governments expressed concern over the situation of their riot-torn neighbour. Mr Goh said Indonesia was "a bit worrying".

Malaysia and Singapore yesterday issued a joint communique saying their leaders recognised the regional financial crisis had "further underscored the need for both countries to co-operate closely in all possible areas".

They agreed to co-operate with one another and their partners in the Association of Southeast Asian Nations (ASEAN) to "restore stability to regional currencies".

But the communique proposed no actions or solutions.

It said the two would "intensify efforts to co-operate in areas of finance".

Officials from both sides would study a proposal urging the use of regional currencies to finance trade between ASEAN members, it added.

Singapore has appeared lukewarm to the Malaysian proposal to use regional currencies in place of the United States dollar.

The communique said the two prime ministers met in a warm and friendly atmosphere, recognised the special relationship between their countries and agreed to work towards realising the "full potential" of their relations.

It said they had "laid a firm foundation for both to co-operate closely in the new millennium".

But the only concrete agreement was Malaysia's pledge to continue supplying water to Singapore after present arrangements end in 2061.

Terms and conditions have yet to be settled.

 Published in the South China Morning Post. Feb 18, 1998