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.