Malaysia cool on S'pore ties despite denial of freeze
Malaysia cool on S'pore ties despite denial of freeze
KUALA LUMPUR (Agencies): Malaysian leaders have stressed that ties with Singapore will not return to normal in a hurry, while scotching reports of a sweeping freeze on new bilateral dealings after their worst row in years.
The government moved to prevent the bitter row from heating up further with a denial Thursday that it was putting relations on ice, but ministers and political leaders made it clear that ties will take time to mend.
Acting Foreign Minister Abang Abu Bakar Abang Mustapha denied reports in government-owned and pro-government news outlets that Malaysia wants to freeze official trade and political relations.
"I need to state that what has been reported by the media ... is not that accurate," Abang Abu Bakar said.
All Malaysian newspapers and the country's semi-official news agency Bernama reported on Wednesday that the government had decided to stop awarding business contracts to Singapore companies.
Noting the clarifications, a Singapore Foreign Ministry statement said the government is committed to maintaining close bilateral relations. It quoted Prime Minister Goh Chok Tong as saying Singapore would let Malaysia "set the pace and level of bilateral cooperation."
Singapore Senior Minister Lee Kuan Yew's two apologies and offer to retract derogatory remarks about the southern Malaysian state of Johor, which sparked off the diplomatic storm, had not assuaged Malaysian anger.
Activities such as joint cultural performances and friendly sports matches between government agencies may be called off but government-to-government contacts and commercial relations remain undisturbed.
Works Minister S. Samy Vellu said an agreement on sports and culture that was due to be signed soon could be postponed, but work on a second link bridge connecting Malaysia and Singapore is to proceed as scheduled.
The vice president of the ruling United Malays National Organization (UMNO), Najib Tun Razak, said it would take "some time to forgive and forget," despite Lee's apologies and Singapore Prime Minister Goh Chok Tong's call for the two countries to put the row behind and "move on."
Reports that the cabinet, at its meeting Wednesday, had decided to freeze all new dealings with Singapore shook financial markets in the island.
Both the Malaysian ringgit and the Singapore dollar dipped against the United States dollar.
The subsequent denial caused confusion on the diplomatic front about what exactly was decided by the cabinet, which met in the absence of Mahathir and Foreign Minister Abdullah Badawi, who are in Tokyo.
A senior minister told AFP the cabinet had basically decided to keep relations with Singapore at a "low key" and not be "too enthusiastic" in cooperating with the island republic.
"Basically, we are still unhappy over the incident and this will go carry on for some time. Let the issue be kept alive," said the minister, who declined to be named.
"You spit at me, curse at me and now after apologizing, you want us to move on. How can we? Singapore must show its sincerity in its relationship with Malaysia," he said.
Both countries, however, have much at stake.
Malaysia is Singapore's second largest trading partner, with bilateral trade estimated at US$43 billion last year, and its top investment destination. Much of Singapore's food and most of its water comes from Malaysia. Some 200,000 Malaysians cross the causeway daily to work in Singapore.
Speaking in Tokyo, Mahathir said Thursday relations would eventually return to normal when Malaysians overcome their feeling of hurt.
The Singapore foreign ministry extended a conciliatory hand, saying the republic would let "Malaysia set the pace and level of bilateral cooperation."