Singapore and Malaysia want to speed up talks over a proposed new bridge linking the two neighbours after both sides short-listed issues that may spawn an agreement.

"I think we have narrowed down and focused on a few issues that we think can take off, where there is general agreement," Malaysian Foreign Minister Syed Hamid Albar was quoted as saying in The Straits Times.

The top Malaysian diplomat held talks with his Singaporean counterpart, George Yeo, over the weekend on the sidelines of an annual sports meeting here, and both wanted to speed up the talks, Syed Hamid said.

"The ministers would like to see that we could accelerate the discussions so that it can be brought to a final fruition," he said.

"We agreed that the negotiations cannot last forever."

'A lot of money'

Malaysia has been lobbying for a new bridge to replace the 80-year-old causeway that currently between the two countries.

Malaysia caused a stir last month by announcing it was going ahead with the project even though Singapore has not yet approved plans to build its half.

Singapore has said its portion would cost S$500 million (RM1.15 billion) and that it would back the project if both sides stand to gain equally.

"It costs a lot of money and if there's a balance of benefits, then we'll be happy to go along," Yeo said. "This is the basis on which both sides are now conducting negotiations."

The two countries have squabbled for years over a variety of issues. While other bilateral feuds have been settled amid a thawing in relations over the past year or so, the bridge remains a thorny issue.