SINGAPORE and Malaysia have announced purchases of new military equipment amid growing concern over potential threats to regional stability.

While defence spending in the neighbouring states is still coloured by old animosities stemming from the acrimonious separation of Singapore from the Malaysian Federation, the two governments are believed to be more worried today about the danger posed by continuing turmoil in Indonesia and the southern Philippines.

Leaders of both Singapore and Malaysia have, in particular, expressed fears about the break-up of Indonesia.

Analysts say this anxiety is believed to be a prime factor in what has the appearance of a new regional arms race.

Singapore has approached the United States to buy up to 100 AIM-120C advanced medium-range air-to-air missiles worth US$100 million. If approved, Singapore will be the first southeast Asian country to acquire the missile.

The United States Department of Defence said the proposed sale would help to improve the security of a friendly country, which was "an important force for political stability and economic progress in southeast Asia". The Pentagon has also sought Congressional approval to sell the missiles to Taiwan. Singapore, which has the most sophisticated and extensive range of weapons of any country in the region, recently took delivery of four Swedish-made submarines.

Malaysia is buying a submarine and undertaking a major spending programme to modernise the entire armed forces.

On September 28, the army said it would soon take delivery of the first batch of more than 200 armoured infantry fighting vehicles bought from a Turkish company for a reported M$1.1 billion.

A Malaysian newspaper recently described Singapore's joint development of a spy satellite with Israel as a threat to Malaysia's security and some Malaysians may see Singapore's proposed acquisition of AIM missiles, which will give a major boost to the firepower of its F-16 D fighter aircraft, in the same light.

But the Malaysian Defence Minister, Najib Tun Razak, this week indicated that the country's defence preoccupations lie elsewhere.

In a speech sounding the most resonant alarm bells heard from Malaysia recently regarding regional security, he warned of a "clear and present danger". He said intra-state conflicts were challenging central authority.

In a reference to Indonesia, he said that in southeast Asia there were "worrisome trends and ominous signs of the collapse of states".

"In the neighbourhood, we see the semblance of a Balkanisation process taking place," he said.

Most significantly, the Five Power Defence Arrangement provided Malaysia with a military option that was "critical to us when the balloon goes up".

The scheme, a security arrangement among Malaysia, Singapore, Britain, Australia and New Zealand, was out of favour with Malaysia two years ago when relations with Singapore were under strain.

Analysts said that with the real danger to regional stability now posed by a turbulent Indonesia, Malaysia was more prepared to work with Singapore within the arrangement to protect their mutual interests.

Abdul Razak Baginda, who heads the Malaysian Strategic Research Centre, said the arrangement was a strategic option providing a link for Malaysia and Singapore, who were "the two recipients of the potential threat of a break-up of Indonesia".