Singapore, Malaysia push further economic, air links With

Singapore, Malaysia push further economic, air links With

Associted Press, Singapore

Officials from Singapore and Malaysia pushed for expanding air links and investment between the Southeast Asian neighbors on Monday, as their leaders met in the Malaysian capital to resolve long-standing disputes.

The two countries share close economic and cultural relations, but ties were strained by political bickering during the rule of Malaysia's ex-Prime Minister Mahathir Mohamad, who retired in 2003 after 22 years in power.

Under Mahathir's successor, Abdullah Ahmad Badawi, relations have improved.

"There is growing evidence of change in the political scene between the two countries," said Mustapa Mohamed, an official at the Malaysian prime minister's office. "We should exploit this window of change to resolve issues."

Mustapa spoke to about 200 businessmen attending a one-day joint economic forum in Singapore.

Singapore's Trade and Industry Minister Lim Hng Kiang pushed for expanded air links - especially with a growing number of regional budget carriers.

Three Singapore-based no-frill carriers were launched this year, joining Malaysian pioneer AirAsia and a string of others now fighting for Asia's growing budget carrier market.

"An open skies policy will lend further support to tourism in both countries, by tapping on the growth opportunities presented by the emergence of low-cost carriers in Asia," said Lim.

Lim also urged joint tourism campaigns to attract visitors from China.

The forum was held at the same time Singapore's former Prime Minister Goh Chok Tong met Abdullah in Kuala Lumpur in an attempt to sort out disputes, including the price of the water Malaysia sells to the city-state.