Premiers agree to bury hatchet

Malaysian premier Mahathir Mohamad and Singapore counterpart Goh Chok Tong also said Singapore would help Malaysia raise money.

"We will need to raise some funds in Singapore, and Singapore has promised to negotiate on how best it can help in that area," Dr Mahathir said.

Mr Goh said: "Dr Mahathir has told me what Malaysia's requirements will be. We believe we can meet those requirements. We haven't discussed details."

Malaysia has found it difficult to raise funds in international capital markets since it imposed currency controls on September 1.

Ties between Singapore and Malaysia have been strained in recent months as they have quarrelled over water supplies, a Malaysian decision to restrict Singapore's access to its airspace and the location of railway customs and immigration operations.

All the issues were discussed at the meeting.

Singapore relies on Malaysia's southern state of Johore for most of its daily water needs of 1.1 billion litres and is trying to extend a supply contract.

Asked about Singapore's requests for water, Dr Mahathir said: "We are going to determine how much water is required by Singapore and how we can meet Singapore's requirement."

The two countries have sealed two supply agreements - one ending in 2011 and the other in 2061.

Malaysia agreed in February to continue supplying water to Singapore beyond 2061, an undertaking that was supposed to be confirmed in an agreement within 60 days. The period lapsed without the agreement being signed.

Asked whether the leaders had decided to put aside their differences, Dr Mahathir replied: "Yes, we hope so, unless somebody else speaks and says things again. Not me, anyway."

Mr Goh, on a one-day visit to Kuala Lumpur, said: "I would say the differences would be there, might arise.

"The important thing is to narrow the gap between the differences and work to maximise common areas. Where we disagree, we just say we disagree on certain things."

Singapore Senior Minister Lee Kuan Yew upset some Malaysians with his recent memoirs, in which he accused Malaysia of "bullying and intimidation" during the countries' two-year federation, which ended in 1965.

The Singapore Prime Minister's Office said on Wednesday that Dr Mahathir had invited Mr Goh to Kuala Lumpur to continue talks last held in April.

Published in the South China Morning Post. Nov 6, 1998