SINGAPORE - Negotiations between Singapore and Malaysia to resolve a package of outstanding issues remained deadlocked today at the end of two days of talks here.

The Southeast Asian neighbours, who have a rocky relationship, gave no indication any progress was made in the second round of ministerial talks in two months, and set no date for a further meeting.

The only apparent agreement was that both sides "expressed a desire to resolve the package of issues," according to a joint statement after talks led by Singaporean Foreign Minister S Jayakumar and his Malaysian counterpart Syed Hamid Albar.

Some areas of dispute, particularly water, have been irritants in bilateral relations since Singapore was kicked out of the Malaysian Federation in 1965.

Malaysia, which supplies resource-starved Singapore with half its daily water needs, wants a price increase.

Singapore has agreed to a pricing review as part of an overall package settling other thorny issues.

Other points of dispute include a proposed new bridge linking the two countries, use of Malaysian airspace by Singaporean aircraft and the location of Malaysia's customs, immigration and quarantine facilities in Singapore.