Thailand will only end an insurgency in its violence-hit south if it patches up relations with neighbouring Malaysia which were damaged by the death of 87 Muslim protesters, analysts say.

They said harsh complaints about Thai tactics, from influential former Malaysian leaders and others, reflect the strained relations despite a less confrontational approach by current Malaysian premier Abdullah Ahmad Badawi.

The cross-border economies of the two countries depend on stability in southern Thailand, which has been rocked by a separatist-inspired insurgency this year that has left more than 540 people dead.

Tensions rose with the deaths of 78 Muslims who were piled into the backs of trucks after being rounded up and bound following the violent break-up of a riot at Tak Bai by Thai security forces on Oct 25. Nine others died earlier in the protest.

Following the violence, former Malaysian premier Dr Mahathir Mohamad urged the Thai government to consider giving some autonomy to the south and compared the insurgency to the struggle for a Palestinian state.

Malaysia's former deputy premier Anwar Ibrahim accused Thai Premier Thaksin Shinawatra of "arrogance" in his handling of the issue, prompting a Thai counterblast that his comments were "not consistent with reality".

"The comments by Mahathir and Anwar are a real reflection of the vacuum" in the two countries' relations, said assistant professor Panitan Wattanayagorn of Bangkok's Chulalongkorn university.

"There is no other option, they have to talk, but some of the bridges are damaged.

"This is not a problem that can be managed by one country alone. A solution will be based on workable local solutions, workable local structures and trust among the leaders. Both realise so much is at stake."

Test on friendship

Only four percent of the population in mainly Buddhist Thailand are Muslims but most of them live in the south near the border with Malaysia.

Ties are strong between the Muslim communities on either side of the border. Many locals hold dual nationality, have family ties and travel across the border for work.

However frictions between the two countries have emerged during this year's violence, despite repeated expressions of unity to develop the region economically. Thailand complained the Malaysian authorities had not done enough to crack down on militants crossing the border.

After the Tak Bai tragedy Malaysia warned its citizens to avoid southern Thailand, a popular tourism and shopping destination.

"Now a tough test of that friendship, or what remains of it, has begun," said an editorial in Bangkok's The Nation newspaper on Saturday.

Apart from concern over Thai Muslims, Malaysia wants a stable southern Thailand for fear that international terrorist groups will use a lawless area there as a base to launch attacks on Malaysia.

Abdullah, whose responses have been more measured than his predecessor Mahathir, has told Thaksin that he was concerned the Tak Bai incident could spark further trouble.

Abdullah is hampered because the policy of the Association of Southeast Asian Nations, of which both are members, is not to meddle in the affairs of other members, said Abdul Razak Baginda, executive director of the Malaysian Strategic Research Centre.

"But if he doesn't sort this one out it's going to spill into Malaysia," he said.

Good in the long run

Abdullah's actions are governed by fears of terrorism on his own patch, getting on with neighbouring Thailand and the feelings of Muslims angered by the deaths across the border at Tak Bai, he said.

Malaysian Muslims have also been angered by Thaksin's strident tone in the aftermath of the tragedy and his threats of a crackdown, said P Ramasamy, professor of political science at the National University of Malaysia.

However, he said Abdullah's style could help soothe relations in the long run. "He's a man who would go for a rapprochement rather than stoke fears among Thai Buddhists," he told AFP .