Mr Lee made his comments in a candid assessment of ties between the two countries which is expected to provoke new criticism of the island state in Kuala Lumpur.

Third World To First, the second volume of Mr Lee's memoirs, is likely to create as much of a stir in Malaysia as the first, which contained disparaging remarks about early Malaysian leaders.

It provides new ammunition for Malay Muslims who accuse Singapore of seeing itself as the Israel of southeast Asia.

In an extract published in Singapore's Sunday Times, Mr Lee says he told Malaysian Prime Minister Dr Mahathir Mohamad in 1978 that if Malaysia cut off the water it supplied to Singapore, creating an emergency, Singapore would "have to go in [to Malaysia], forcibly if need be", to restore the flow.

Mr Lee said in an earlier extract, published on Saturday, that after Singapore's separation from Malaysia in 1965, the government worked "feverishly" to build up a defence capability with Israel's help. He wrote that he had feared "powerful Malaysian leaders like Syed Ja'afar Albar" might persuade the commander of Malaysian troops stationed in Singapore to launch a coup.

Syed Ja'afar's son is the current Malaysian Foreign Minister, Syed Hamid Albar, who complained about criticism of his father in the first volume.

Referring to a dip in relations in the 1980s, Mr Lee, who was the city-state's first prime minister, said "antipathy for and envy of Singapore always tempted Malay leaders to seek popularity with their Malay grassroots by hitting out at Singapore".

Mr Lee recalled that relations between the two countries had been strained by the visit to Singapore in 1986 of Israeli president Chaim Herzog. The visit coincided with the disclosure that Malays were not serving in "sensitive key positions" in the armed forces because the authorities did not want soldiers to be put in a position where their loyalties to the nation might conflict with their emotions and religion.

Mr Lee said the Malaysians wanted what was called in the Malay language an abang-adik, or big brother-little brother, relationship, "with little brother giving way graciously". He said that when non-vital interests were at stake, Singapore was "prepared to humour abang" but "not when adik had legitimate interests to defend".

He said Singaporeans needed to take "gyrations" in Singapore-Malaysia relations with "steady nerves, stamina and patience, while quietly standing up for our rights".

Mr Lee said that despite differences with Dr Mahathir, he made "more progress solving bilateral problems" with the Malaysian leader than with his predecessors.

"He had the decisiveness and political support to override grassroots prejudices to advance his country's interests."

Declaring that close ties of families and friends still bind Malaysians and Singaporeans, Mr Lee said both countries needed multi-racial tolerance