MALAYSIAN Prime Minister Mahathir Mohamad Feb 26 described Singapore's attempts to negotiate separate free trade agreements as "worrisome." Countries which secure such deals could gain a "backdoor entry" into the ASEAN Free Trade Area (AFTA), he told a press conference.

"This is a worrisome thing because you know, generally in the AFTA, we accept that anything that has a 40 percent local content, that must be regarded as national," Mahathir said.

"That means they can enter into the markets of other countries. It would be very easy for these other countries to bring in partly completed products and complete them in Singapore and regard that as Singapore products, which would have free access into the other countries.

"We have to watch this very carefully because this can be a backdoor entry into AFTA," Mahathir said.

Singapore and Australia Feb 23 ended a first round of talks on a free trade agreement and said they are committed to reach a deal this year.

The island republic also recently concluded a "Closer Econoimic Partnership" with New Zealand and is aggressively pursuing free trade deals with several countries including Japan, the United States, Canada, Mexico and the European Union.

It has drawn criticism from fellow members from the Association of Southeast Asian Nations (ASEAN).

Malaysia's International Trade Minister Rafidah Aziz, in an interview with an Australian magazine published last week, said her country would not stand for any attempt by Australia or New Zealand to use closer economic links to Singapore as a back door into AFTA.

But Supachai Panitchpakdi, the next World Trade Organisation (WTO) director-general, said in Hong Kong he had no problems with Singapore negotiating its own free trade agreements.

Such deals would provide vital linkages within the global trade system, capable of connecting countries to trade blocs like the North American Free Trade Association, he said.

"There are a lot of local content laws that will not allow Singapore to be a back door entry point," said Supachai, who takes over the WTO post in September 2002.

AFTA aims to cut tariffs to between zero and five percent by 2003 for more developed members of the 10-nation grouping and a later date for poorer economies.

Investors have expressed concerns ASEAN is dragging its feet after Malaysia was allowed to delay the opening of its auto sector to full competition by two years to 2005.

Singapore's Prime Minister Goh Chok Tong, defending his republic's policy of separate deals, said recently that "those who can run faster should run faster" and "should not be restrained by those who don't want to run at all."