Asia Live Headlines

Friday, May 25, 2007

Malaysian leader denies Singapore meddling in industrial park project

Malaysia- Malaysia's leader has rejected concerns that Singapore might wield too much influence over how Malaysia plans to run a multibillion-dollar industrial park bordering the city-state, news reports said Friday.

Both countries announced earlier this month they would set up a joint ministerial committee to study ways to cooperate to make the Iskandar Development Region (IDR) project in Malaysia's Johor state a success.

Prime Minister Abdullah Ahmad Badawi, speaking to selected media during a visit to Tokyo on Thursday, said the announcement does not mean Malaysia will need to seek Singapore's approval for any decisions regarding the project.

"Many are worried that we would be consulting Singapore on everything we do on Iskandar," Abdullah was quoted as saying by The Star and New Straits Times newspapers. "No, it is not happening that way. ... That will never happen."

Aides traveling with Abdullah could not immediately be contacted Friday.

Malaysia and Singapore enjoy close economic and cultural ties, but have a history of diplomatic spats. Ties improved after Abdullah in 2003 succeeded former leader Mahathir Mohamad, who frequently criticized Singapore.

Following recent talks with Abdullah, Singapore's Prime Minister Lee Hsien Loong said the city-state has assessed the IDR project and determined "it is fundamentally good for us if the project takes off and succeeds."

Once completed, the zone would be almost three times the size of Singapore. Malaysia plans an investment of 47 billion ringgit (US$14 billion; €10 billion) over the next five years, and 360 billion ringgit (US$105 billion; €80 billion) over 20 years.

Malaysia is hoping to attract investors from Singapore to get the project going, and Abdullah has said he envisions Singapore's relation with IDR as similar to that of Hong Kong and Shenzhen on the Chinese mainland.

The two countries have also agreed to make travel easier between Singapore and IDR by issuing chip-embedded smart cards that would make passports unnecessary.

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