"Both governments will now study the reports and the recommendations made in them," the two countries said in a joint statement.

"They will do so in the same spirit of cooperation and consultation that has been shown throughout the course of the study, and with a view to reaching agreement on further steps."

Last year, the Hamburg-based International Tribunal for the Law of the Sea ruled that the two neighbours should resolve the dispute themselves with the help of experts.

The UN court gave the panel of independent experts, assisted by an independent consultant, one year to examine Singapore's reclamation project in the Johor Strait which Malaysia claimed is damaging the environment.

Malaysia also claimed the project could obstruct ships headed for ports in its southern state of Johor, which are being promoted to rival those of Singapore.

The land reclamation dispute is just one of many issues that have damaged relations since Singapore became independent in 1965 after being ejected from the Malaysian federation.

Other outstanding issues include the price of long-term raw water supplies to Singapore, Singapore's military access to Malaysian airspace, the future of Malaysian-owned railway land inside Singapore, and a proposed new bridge linking the two countries.

Despite the unresolved issues, the tone of relations has changed for the better in recent months with the rise of new leaders on both sides -- Prime Minister Abdullah Ahmad Badawi in Malaysia and Lee Hsien Loong in Singapore.

                                                      Home