Malaysia and Singapore settle row

Malaysia and Singapore have reached agreement in an 18-month dispute over a land reclamation project in the thin strip of sea that separates them.

The two countries said they had agreed in principle over Singapore's land reclamation works in the Johor Straits.

They said they had a common interest in ensuring safe navigation in what they called a shared body of water.

Malaysia took its tiny neighbour to the Hamburg-based International Tribunal for the Law of the Sea in 2003.

It accused Singapore of proceeding with land reclamation without consulting Malaysia, and expressed concern about the impact of the work on navigation and the local environment.

Singapore insisted it needed to go ahead with the project to accommodate its growing population, and said it was in full compliance with international law.

Strained relations

The tribunal allowed the reclamation to continue but asked the two sides to settle the dispute with independent arbitrators.

Under the agreement, Singapore will carry on with its reclamation works but will cooperate with Malaysia to ensure navigational safety and environmental protection of the busy waterway.

"The positive outcome of the meeting between Malaysia and Singapore delegations reflects the goodwill and cooperation which exist between them and their respective governments," a joint statement said.

Relations between the two have been strained ever since the former British colonies formally separated in 1965, and a number of issues still divide them.

But relations have warmed since the arrival of two new leaders - Prime Minister Abdullah Ahmad Badawi in Malaysia and Lee Hsien Loong in Singapore.

Their statement said Friday's compromise deal, "augurs well for the further strengthening of good relations between these two friendly and close neighbours", reported the AFP news agency.