The measures include the simultaneous suspension of a restricted area in Malaysia near the border with Singapore and instrument landing procedures at Singapore's Seletar Airport, which Malaysia has objected to on the grounds that it could hamper building development in its southern-most state.

On the maritime front, the sides agreed to the establishment of a working group to discuss issues around port limits. Singapore last month protested to Malaysia's plan to extend the limits of a port saying it encroached on its territorial waters.

"Both sides reiterated their commitment to preserving the vital relationship between both countries and to improving bilateral ties, on the basis of equality and mutual respect," said the statement issued after a meeting between the two countries' foreign ministers on Tuesday.

"They (Malaysia and Singapore) agreed on the importance of keeping the situation on the ground calm to allow discussions to take place in a conducive atmosphere."

REUTERS