Mr Chee was singled out after alleging the government had lent S$17 billion (HK$72.5 billion) to ousted Indonesian leader Suharto.

Singapore is routinely accused by rights groups of using legal action to silence opponents. Government-linked newspapers focused their election coverage yesterday on Mr Chee's claim and the strong reaction from the ruling People's Action Party (PAP).

Lee Kuan Yew, Singapore's founding father who now holds the title of Senior Minister, warned Mr Chee of possible "consequences" from his accusations, the Business Times reported.

The Straits Times also led with a story saying the PAP saw Jurong GRC, the constituency Mr Chee is contesting, as a crucial contest. But of a further five reports that focused on Mr Chee, only two looked at his policies.

"Chee's 'Gangster politics'," said the New Paper quoting Mr Lee. "Cheesed off, Chee's outburst, allegations draw fire from PM, SM" said the Streats tabloid, referring to the criticism by Prime Minister Goh Chok Tong and Mr Lee.

Mr Chee, who has long campaigned for more openness in Singapore, is no stranger to clashes with government. In 1999 he was jailed twice for speaking in public without a permit, when he mounted a civil disobedience campaign against speech and press restrictions.

He was once fined S$16,000 for filing a report to legislators about medical fees that contained an error and he may face legal action again.

"I say the man . . . knows it's not true, this S$17 billion [loan allegation]," the Business Times quoted Mr Lee as saying. "I think the man is reckless. There may be consequences arising from what he said. We are going to check the recording and this may not be the end of it."

Mr Goh said the issue referred to a US$10 billion loan offered to the Suharto government during the 1997-98 Asian financial crisis. The loan had conditions attached and was not taken up, he said.

Mr Chee said he would address Mr Goh's explanation at a press conference he planned to hold late yesterday, adding that he was not particularly disturbed by the name-calling as it was "very mild" compared to previous years.

"I've asked [the PAP] to address the issues. There is no point in calling me name after name after name. It doesn't have to get to that level," he said.

Even before the clash over the claimed Indonesian loan, Mr Chee had been the focus of a series of articles by the Straits Times, including one headlined: "Chee disloyal to Singapore, says PM Goh."