Malaysia freezes fresh dealings with Singapore

Malaysia freezes fresh dealings with Singapore

KUALA LUMPUR (Reuter): Malaysia said Wednesday it was freezing fresh dealings with Singapore, including awarding new contracts to Singapore firms, over unkind remarks made by elder statesman Lee Kuan Yew about a Malaysian state.

The decision was made at a cabinet meeting chaired by Deputy Prime Minister Anwar Ibrahim, the national news agency Bernama said, quoting several cabinet ministers whom it did not name.

One minister, who spoke on condition of anonymity, said the Cabinet decided to cool off ties for a while in terms of bilateral talks "or anything to do with Singapore".

Any ongoing bilateral talks will also be postponed for now, he said.

Bernama quoted another minister as saying awarding of contracts to Singapore companies, government-to-government contacts and meetings between ruling political parties would also be affected.

Prime Minister Mahathir Mohamad is currently on a four-day official visit to Japan. Foreign Minister Datuk Abdullah Ahmad Badawi is accompanying him.

No Singapore government official was immediately available for comment.

Bernama quoted a minister as saying the decision was prompted by remarks from Singapore Prime Minister Goh Chok Tong and Foreign Minister S. Jayakumar after Malaysia last week announced it had accepted Lee's "unreserved apology" for describing Johor state as "notorious for shootings, muggings and car-jackings".

Badawi said after last week's cabinet meeting the government accepted the apology but the episode had deeply hurt all Malaysians and "restoration of the old level of relationship would take time."

Radio Corporation of Singapore reported the same day that Jayakumar expressed surprise at Badawi's statement.

Earlier this week, Malaysia newspapers quoted Goh as telling Radio Corporation the differences between the two countries were mainly due to inaccurate newspaper reports.

The latest fuss between two neighbors, who share the same colonial legacy and were briefly united between 1963 and 1965, appeared to have died down after Lee's apology and his move to withdraw the offending remarks from a court affidavit.

It was a rare public apology by the 73-year-old Lee, who led the fight for Singapore's independence and was its prime minister from 1959 until 1990.

But his bitter debates with Malaysian leaders over "special rights" for ethnic Malays led to Singapore's expulsion from the Malaysia Federation in 1965, leaving wounds that linger today.

Last year, Lee hit a raw nerve when he said some day Singapore might be forced to re-unite with Malaysia if the island state was unable to compete on its own. But it would only do so if Malaysia adopted meritocratic policies.

Malaysian Prime Minister Mahathir Mohamad, infuriated by the reference to meritocracy, accused Lee of conjuring up Malaysia as a "bogeyman" to scare voters ahead of Singapore elections that were eventually held in January.

Malaysians said they were not altogether happy with Lee's apology and retraction, which were done by issuing statements through his press secretary. Lee, himself has not personally commented about the incident.

Lee's controversial remarks were part of an affidavit he made in court on Jan. 27 in his libel suit against opposition politician Tang Liang Hong.

Tang fled to Johor Baru, capital of Johor state, immediately after losing a race for parliament in Singapore's general elections on Jan.2.