The Ministry of Home Affairs (MHA) said in a statement "there are links" between the 15 detainees and bin Laden's terror network.

It gave no further details on the nature of relationship but said investigations "are still ongoing."

The ministry also said a recent Jane's Intelligence Review report, reprinted in local papers last week, was correct in stating that al-Qaeda had established its presence in the region, including in Singapore.

However it dismissed a Jane's claim that a terror attack had been planned for Singapore, but was supposedly cancelled by bin Laden, the alleged mastermind of the September 11 attacks on the US.

"We have no information to confirm that al-Qaeda plans for terrorist action in Singapore were aborted by Osama bin Laden," the MHA said, adding that the Jane's report "was obviously not wrong about al-Qaeda links in the region, including Singapore."

According to the ministry, the American embassy and other US-related entities were targeted for bombing by the 15 detainees, who are now held under the island's tough Internal Security Act, which allows for detention without trial.

It said the "American establishments including the US embassy and commercial entities were the principal targets for attack".

A spokesman from the American embassy said it was satisfied with security levels in Singapore.

"The embassy has full confidence in the measures taken by the government of Singapore and its ability to provide a safe and secure environment for Americans and American institutions based here," said the spokesman.

"Its recent actions are a further indication that Singapore and the United States share the same concerns regarding international terrorism and are cooperating closely in these matters."

At the American Club located in the prime shopping belt of Orchard Road, police and Gurkha troops were guarding the club's entrance and surrounding car parking lots.

A senior employee of the club, speaking on condition of anonymity, said the Gurkhas had been there for a month.

The American Chamber of Commerce declined to say if it has stepped up security measures at its premises but said the arrest of the detainees will boost US confidence in Singapore, which houses the regional offices of several major US companies.

"The news of the arrests is very positive news for the business community, it being further evidence of Singapore and Malaysia's vigilance on this issue," said managing director Nicholas de Boursac, referring to Malaysia's arrest of similar terror suspects announced last Friday.

"In fact, the vigilance of the authorities will, in the long-term, promote American investor confidence," he said.

Thirteen of those arrested in raids between December 9 and 24 are "cell members" of a clandestine organisation called Jemaah Islamiah, with several having received training from the al-Qaeda network in Afghanistan, the MHA said.

The detainees had ties to the Militant Group of Malaysia (KMM), it said.

A search of the homes and offices of the suspects yielded detailed information on bomb construction, photographs and video footage of target surveillance, tampered passports and forged immigration stamps as well as materials linked to al-Qaeda.

Some of the arrested held junior posts in the army, Defence Minister Tony Tan said.

"None of them was in a critical or sensitive position," Tan said on Sunday.

Multi-racial Singapore has 3.2 million people including 450,000 Malays, most of whom follow Islam.

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