KL and S'pore start anew

KL and S'pore start anew

KUALA LUMPUR (Reuters): Malaysia and Singapore sought yesterday to bury old rivalries, agreeing to cooperate in the rescue of the region's reeling economies.

Speaking at the end of a visit by Singaporean Premier Goh Chok Tong, Prime Minister Mahathir Mohamad also said that Malaysia would not cut off the island-republic's water supply.

"The two prime ministers ... recognized that the regional financial crisis has further underscored the need for both countries to cooperate closely in all possible areas," a joint communique said.

Mahathir said the two men had "discussed generally the situation in Indonesia," where the International Monetary Fund is now threatening to withdraw a $43 billion bailout fund.