But prospects of a "very prosperous'' relationship in the future would depend partly on each other's internal developments, said Trade and Industry Minister George Yeo.

"The fact is the links between Malaysia and Singapore are deep links.

"So, when I say relations should get better, it assumes that the Malaysian society, say, doesn't turn sharply Islamic and it continues to promote English and that our economic links are intricate and multi-faceted,'' he told a group of visiting Malaysian journalists here.

Yeo, viewed as a rising star in the island-state, was asked how he saw relations between the two countries in the next 10 years when his generation of leaders take over.

"I think it should be better because when you leave behind some of the memories of the past, you will be able to see each other objectively--and not through the prism of the past.

"I think it should be a more normal relationship and, therefore, a more rational one on both sides,'' he said in the candid interview.

Bilateral ties have seesawed between the two countries which have gone separate ways after a brief merger in the sixties.

In August this year, Singapore's modern founder (now Senior Minister) Lee Kuan Yew returned from a visit to Malaysia expressing optimism that the two countries would be able to resolve a package of outstanding issues that have paled ties.

Yeo, 47, who has served as health minister and information minister before, said future leaders of the two countries could still have a very good relationship, although they may not have the strong personal ties of their predecessors with each other.

"I don't think you can replicate the past.

"You cannot say, I want one part of the past with the other part.

"That closeness came with that baggage.

"There is less of it now. So, correspondingly, it is less intimate.

"But even on this new basis, I think we can have a very good relationship and one which is mutually beneficial,'' he said.

On why he was worried about Islamic or an Islamic government in Malaysia, Yeo said the two countries had a very relaxed and intimate relationship now because of common history, culture and accent.

"We hope that will continue and if that continues, we will continue to have that relationship.

"But each society goes through its own process of evolution.

"We may change in Singapore, you may change in Malaysia and we change in different directions.

"Then our bilateral relations may go apart. That is the point I'm making,'' he said.

Yeo said it was important that exchanges continue between the two countries, through the media, ministers, young political leaders, civil servants and businessmen, because many Singaporeans and Malaysians had an outdated picture of each other.

Asked how the two countries could complement each other, he said as the two most advanced countries in Asean, Singapore and Malaysia had the strongest interest in making sure that the region remained as one and well marketed to the rest of the world.

Economically, such as in information technology, electronics, business operations, air and sea links, Singapore and Malaysia were almost like "one system, two countries,'' said Yeo.--Bernama