Singapore

Singapore's new Prime Minister Lee Hsien Long and his Malaysian counterpart, Abdullah Badawi, have agreed to strengthen economic and security co-operation during their first official talks. A series of issues, particularly the price Singapore pays for water pumped from peninsular Malaysia, have strained relations between the two neighbours since they separated formally in 1965. But things have improved since October 2003, when Badawi replaced the outspoken Dr. Mahathir Mohammed. Malaysia is the first stop on Lee's tour of South East Asian capitals following his accession to office in August.

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