SINGAPORE - Singapore and Malaysia should resolve their dispute on water supplies as soon as possible to allow them to focus on fighting terrorism in Southeast Asia, the city-state's foreign minister said today.

Foreign Minister S Jayakumar however said that if the dispute ended in a stalemate, Singapore was prepared to take the matter to the Permanent Court of Arbitration in the Hague.

"The sooner we can put these issues behind us, the better," Jayakumar said in answer to questions in parliament.

Singapore and Malaysia both face "very serious problems in the region posed by terrorism," he said.

"It is in the interest of both countries to settle these bilateral issues so that we can deal with the real threats and problems that confront us in the region," he said.