S'pore's proposal on economic union studied

S'pore's proposal on economic union studied

KUALA LUMPUR (DPA): Malaysia will study in depth Singapore's proposal for both countries to form an economic union, Prime Minister Mahathir Mohamad said Saturday.

Such a proposal has never been discussed before by leaders of both countries, he said.

"This is their proposal and we're not rejecting it. But we need to know it in detail," Mahathir said.

Singapore Foreign Minister Professor S. Jayakumar said the republic was prepared to consider an economic union with Malaysia.

Responding in Parliament to Singapore's Opposition member of Parliament Chiam See Tong's suggestion for a Singapore-Malaysia economic union, Jayakumar said it would take two parties to make it work.

Chiam had said Thursday that Singapore should seek economic union with Malaysia to lessen competition and tension between the two neighbors.

Mahathir said he has yet to figure out what form of an economic union that Singapore has in mind.

It could be in the form of a currency union or merely an economic union, he said.

"But all these we'll have to study first whether they are practicable or not," he said.

Mahathir said Malaysia was always open to suggestions especially those which could help countries in the region.

Meanwhile, Malaysian businessmen lauded Singapore's willingness to consider an economic union with Malaysia is a sensible move especially with the economic flu hitting the region at present.

The National Chamber of Commerce and Industry of Malaysia vice- president, V.K.K. Teagarajan said there is a need for greater cooperation between the two countries as Malaysia is "the lifeline to Singapore."

"As you know we supply water to Singapore, we supply everything, vegetables, you name it. So it is very logical to have such an economic union," he said.

He also said a Singapore-Malaysia Economic Union would accelerate the pace of ASEAN's Free Trade Area where tariff barriers among ASEAN members would be cut to between five to zero per cent by the year 2003.

Singapore and Malaysia together with Brunei, Laos, Myanmar, Indonesia, the Philippines, Thailand and Vietnam are grouped in the Association of Southeast Asian Nations (ASEAN).