Singapore and Malaysia called Monday for a joint effort by their business communities to tap opportunities in the global marketplace.

"We have done well individually but if we work together, I am sure Singapore and Malaysia can compete with the rest of the world more effectively," Singapore's trade and industry minister Lim Hng Kiang told a seminar on business opportunities in Malaysia.

"So it is not only about creating new ways of doing businesses in both our countries but also about leveraging on each other's strengths, expertise and capabilities to move into new markets," he said.

The periodically stormy ties between the two neighbours have improved markedly since they signed a landmark agreement in April to settle a long-running dispute over Singapore's land reclamation activities.

The dispute was one of many that have affected relations since Singapore left the Malaysian federation in 1965.

Signs of a thaw first emerged after Malaysian Prime Minister Abdullah Ahmad Badawi succeeded Dr Mahathir Mohamad in 2003.

New markets

Malaysian Trade Minister Rafidah Aziz, whose speech was delivered by Kuala Lumpur's envoy to the city-state N. Parameswaran, also urged businessmen from the two neighbours to work together in pursuit of new export markets.

"While strengthening trade ties in existing markets, Singapore and Malaysia can work together to seek export opportunities in new and emerging markets," Rafidah said.

"Malaysia and Singapore-based companies must continue to work together and draw on their combined strengths to become more competitive regionally and globally.

"This is imperative especially in the light of global developments and new opportunities."

Malaysia is Singapore's top trading partner with total trade worth 88.3 billion Singapore dollars (52.87 billion US) in 2004.

Cross-border investment is also on the rise, including industries like telecommunications which were once deemed too sensitive.