Chee had sought the inclusion of Singapore Press Holdings (SPH) and the Media Corp. of Singapore in the suit as he wants the media outfits, which published or aired the supposedly defamatory articles, to share the damages if he is found guilty.

However, media firms in Singapore can claim the defence of "qualified privilege" in defamation cases if the report is a matter of public interest, according to the Straits Times, which is published by SPH.

Chee, leader of the Democratic Party, is facing defamation charges filed by Prime Minister Goh Chok and Senior Minister Lee Kuan Yew arising from his claims that Singapore had lent S$17 billion (US$9.2 billion) to former Indonesian leader Suharto.

The allegations were made during campaigning for last November's general elections which were nearly swept by the ruling People's Action Party. Chee lost in his bid for a parliamentary seat.

Goh has claimed the allegation damaged his integrity, stressing that the money was never disbursed to Indonesia.

The loan, offered during the 1997-98 Asian financial crisis, had conditions attached and was not taken up by Suharto, the prime minister said.

Chee issued a public apology and admitted making a false accusation but later retracted his statement saying it was made under "duress and intimidation".

He has filed his own lawsuit againt Lee, claiming he was defamed when the founding father of modern Singapore called him a "political gangster, a liar and a cheat" during the campaign.

Chee's earlier application to have a senior Australian lawyer defend him in the case was dismissed by the High Court, but the politician has said he would appeal the decision.

Leaders of the ruling party over the years have won millions of dollars in damages as a result of lawsuits against opposition politicians who questioned their integrity.

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