Malaysian Prime Minister Mahathir Mohammad had last month said: "The PAP are very smart people, and I am quite sure they can manage problems. We're not going to be the object of their campaign - hate campaign - in order to make their people forget they're facing rather severe problems."

That was Malaysia's reaction after Singapore released documents to show how unreasonable Kuala Lumpur has been during the water talks.

And it was reported prominently by Malaysia's media, but after Thursday's Special Agreement signing ceremony to bring the Pedra Branca dispute to the International Court of Justice, Prof Jayakumar dismissed this claim.

"Anyone who knows Singapore well will know that we do not need distractions for economic problems or scapegoats for any problems. Singapore does not duck issues. We're upfront with our people on economic or security problems and we've set out the facts. That is the Singapore style of governance," Prof Jayakumar told reporters.

In fact, last month the Political and Economic Risk Consultancy noted that Singapore does not shy away from hard decisions.

Prof Jayakumar also rebutted accusations that Singapore acted in bad faith by releasing letters between leaders of the two countries.

"We have always considered the documents part of the negotiating process and everything should be kept confidential and private," said Malaysian Foreign Minister Syed Hamid Albar.

But Prof Jayakumar told reporters: "Now I find it difficult and others find it difficult to understand this. When these accusations and allegations are made (by Malaysia), that is all right and not considered bad faith.

"But when Singapore does no more than to set out the facts and the documents to speak for themselves, that is considered to be bad faith. How is that?

"I do not want to have a sparring match. Syed Hamid is the foreign minister of Malaysia and has to defend Malaysia's interests while I am the foreign minister of Singapore, I have to defend my country's interests."

But the sparring did not end there. Malaysian reporters accused Singapore of not honouring the price review in the water agreement, even though Malaysia chose not to review prices which were due over 15 years ago.

One reporter asked: "Now that both countries have signed this agreement, I want to take your word, would you honour the agreement from both countries because we don't want to hear after this, like the agreement on water, questioning on the Malaysian right to review."

Prof Jayakumar replied: "Singapore has always honoured its international commitments and agreements - that's precisely the point we made about the water agreements.

"Whatever problems and issues of interpretation there are about the water agreements, the right way to go about it is to follow the provisions of the water agreements. That's the way to do it, not through any unilateral action or action such as enacting a domestic law to render the water agreements null and void."

To that, Mr Syed Hamid said: "Malaysia has not enacted any law to deny any country, to deny Singapore the water and we still continue to supply water. The question of Malaysia not honouring its obligations is a bit misleading, even though we are not happy with the price of 3 sen."

But looking ahead, both ministers agreed the signing of the special agreement can be a model for resolving other disputes.

Prof Jayakumar said the signing ceremony has a broader significance beyond just Pedra Branca as it will also send a strong signal to Singaporeans, Malaysians and the international community that the 2 countries could take the same approach, based on international law, to resolve the other outstanding bilateral issues like water.

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