Singapore's Lee Kuan Yew has said sorry for alleging Malaysia discriminated against its ethnic Chinese minority, but premier Abdullah Ahmad Badawi said he was unimpressed with the qualified apology.

Abdullah reiterated his view that the comments from Singapore's founding father were "uncalled for and not appreciated" and risked inflaming racial tensions in the multicultural country.

"I am sorry that what I said has caused you a great deal of discomfort. After a decade of troubled relations with your predecessor, it is the last thing I wanted," Lee said in the letter .

"I had no intention to meddle in your politics. Indeed I do not have the power to influence Malaysia's politics or to incite the feelings of the Chinese in Malaysia," he said in the letter dated Sept 29.

"Since you took over as prime minister in November 2003, relations between our two countries have much improved. Singaporeans and, I believe, Malaysians too, appreciate this."

'Don't repeat them'

Abdullah responded tersely to Lee's letter, in which he argued he was only repeating comments he made many times before.

"I have taken note of the apology," he told a press conference.

"Irrespective of whatever reasons he has said, such a statement can incite the feelings of the races," he added. "We have to ensure such a statement should not be made again."

Lee, Singapore's former premier who now serves in the cabinet of his son, Prime Minister Lee Hsien Loong, told a forum in the city-state that Malaysia's minority Chinese community was being "systematically marginalised".

He also said it was vital that Singapore, which is predominantly ethnic Chinese, stand up to its majority Muslim neighbours Malaysia and Indonesia.

Issues related to race, religion and education are extremely sensitive in Malaysia even after almost half a century of independence from British rule.

Foreign Minister Syed Hamid Albar had called for an apology from Singapore, saying that Lee had overstepped the boundaries.

Malaysia and Singapore have strong economic ties but the two nations have squabbled periodically since Singapore was ejected from the new Malaysian federation in 1965 due to race politics.