The Abdullah administration, commencing more than two years ago, had made a significant impact on the much-improved relations between the two neighbouring countries. The reclamation issue has been amicably settled and the dispute over Pedra Branca is under arbitration in the International Court of Justice. The water issue is no longer a major bone of contention, at least in so far as Singapore is concerned since it is now able to find alternative supplies of water. Discussions on the other outstanding issues are being conducted between officials of the two countries and, more importantly, in a quiet manner without any public comment on the ongoing discussions. This is a clear reflection that the two sides are now determined to resolve the problems without the distraction of them being politicized.

Equally important is the realization and acceptance that even with some issues still under negotiations, it is imperative that both sides look at the bigger picture and work together for mutual benefits in a region and world that is fast changing. The two countries are small players on the world stage but have the capacity and wherewithal to contribute increasingly to economic integration and regional security. As President Nathan observed during his official visit to Kuala Lumpur in April2005, “As founding members of ASEAN and two of the more developed economies in the region, there is also much scope for Singapore and Malaysia to pool our efforts to strengthen ASEAN.”

There are opportunities for the two countries to come together to cooperate and, even take the lead, to discuss and resolve multilateral challenges among countries in the region. One good example concerns the perennial concern of piracy in the Straits of Malacca, where some 50,000 ships carrying half of the world's oil pass through every year, poses a serious concern to the littoral countries, shipowners and businessmen. Happily, Malaysia and Singapore were able to persuade Indonesia and Thailand to launch a landmark joint air patrol programme known as “Eye in the Sky” to prevent pirate attacks, numbering about 27 last year, and possible future terrorist attacks in the 900-kilometre waterway. Indeed, this new initiative to supplement increased boat patrols has resulted in a dramatic drop in pirate attacks from 38 in 2004 to 12 in 2005 in the Malacca Straits.