The Singapore government said today Malaysian concerns that land reclamation on a narrow straits separating the two countries would affect Malaysian shipping had no legal basis.

"At first we were told that we were encroaching on Malaysian territory.

"After Singapore rebutted this claim, we are now told that our reclamation, which is entirely within our sovereign waters, may affect their shipping," a Singapore foreign ministry spokesman said.

"These claims are unfounded in international law," he said in a statement.

The statement was issued a day after Prime Minister Dr Mahathir Mohamad said Singapore would be asked to guarantee that its land reclamation drive on the Tebrau Strait would not obstruct Malaysian sea lanes.

While the project lies within Singapore's waters, Mahathir said it could unsettle the sea bed and affect passage for boats through Malaysian waters.

"Singapore needs to take these factors into account," the Malaysian leader was quoted as saying by Bernama.

Rival ports

In the statement today, the Singapore foreign ministry spokesman said "that the reclamation is carried out entirely within Singapore's territory and all reclamation works are done within our rights and in keeping with international law".

Mahathir has said the Malaysian foreign ministry had summoned Singapore's high commissioner to express its concern over the matter but there was no response yet from the island republic, which was kicked out of the Malaysian Federation in 1965.

Asked if the case would be referred to the International Court of Justice, he said it had "not yet reached that level".

Malaysia fears that work at certain stretches along the straits is too close to its border and could obstruct ships headed for ports in the southernmost Johor state which are being promoted to rival Singapore's port.

International Trade and Industries Minister Rafidah Aziz said yesterday that Malaysia had a right to convey its concern and this should not be construed as interfering in Singapore's internal affairs. (AFP)