A national security co-ordination secretariat will be set up under the prime minister's office to consolidate government departments' anti-terrorist actions, Coordinating Minister for Security and Defence Tony Tan told parliament.

A newly created permanent secretary for national security and intelligence co-ordination will head the secretariat.

As part of this new structure, a joint counter-terrorism centre will be set up to enhance co-operation between the intelligence agencies of the interior and defence ministries, which have traditionally worked separately.

The centre will draw up a "modus operandi" for the two agencies to work together to produce strategic counter-terrorism intelligence from various sources for analysis and assessment, Tan said.

He said this would provide officials with a "higher-level strategic picture" to help them formulate national policies against the enduring terrorist threat.

"The key to ensuring national security today lies in strengthening coordination and integration among government agencies involved in national security," Tan, who is one of two deputy prime ministers, said.

Highlighting potential problems, Tan said the air force is currently responsible for aviation security, while the interior ministry is tasked with putting air marshals aboard selected commercial aircraft.

The police coast guard and the navy, together with port authorities, deal with maritime security.

Tan said Singapore, which is currently detaining 37 alleged members of the Jemaah Islamiyah regional group and other militant organisations, remained a prime terrorist target.

"We have to deal with the real prospect of a terrorist attack. This threat will be with us for a long time," Tan said.

Tan also announced the government planned to beef up security at its embassies abroad, saying the government had become "very concerned" over the past few months that they were becoming targets for attacks.

He said militants intending to attack Singapore were becoming increasingly likely to look for overseas targets because of increased security at home.

"With the measures we have taken in Singapore, we have reasonably hardened Singapore (against attacks). And therefore, if any terrorists were to attack Singapore's foreign interests, it would most probably be overseas rather than at home."

Tan said funding had been provided so the foreign ministry could launch the program quickly.

"You cannot waste time when lives are at stake," Tan said.

"Our officials, our ambassadors, our foreign service officials in our embassies work and live abroad for Singapore and we must ensure that their working environment is safe and they will not be blown up by a car bomb or by a suicide attack."

Referring to the pullout of Philippine troops from Iraq following demands by militants who were holding a Filipino truck driver hostage, Tan said Singapore would never negotiate with terrorists.

"That would encourage more terrorists to take more of our people as hostages," he said.

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