SINGAPORE: Prime Minister Lee Hsien Loong said the Iskandar Development Region (IDR) in the southern Malaysian state of Johor may pose a challenge to Singapore, but there is always room to work together.

He was speaking on Friday to members of Singapore's Foreign Correspondents Association in a wide-ranging discussion.

Financial markets may appear to have stabilised for now, but real economies have been affected and many have gone into recession.

On southern Johor's IDR, Mr Lee said Singapore and Johor can be one big centre of vitality and growth.

"I have told Malaysia – 'Yes, this can be a challenge to us, but I'm prepared to work together and cooperate with you'. There's growth to go around and our competition is not Singapore and Johor. It could be Singapore versus Shenzhen, Singapore versus Mumbai. So, for Singapore and Johor, I think there is room for us to work together," he said.

Mr Lee was also asked about European banks coming under pressure on banking secrecy and tax evasion issues.

He said while some banking customers may look towards Singapore as an alternative, the country, too, can expect to come under pressure even though its banks are in good standing.

On Singapore's integrated resorts, Mr Lee said the operators have every interest to make it succeed and not be white elephants.

"We have every confidence that this will come through, the projects will be built, jobs will be created and the tourists will come," said the prime minister.

In a discussion that lasted more than an hour, Mr Lee covered topics ranging from Singapore's monetary policy to the outlook for Temasek Holdings and the Government Investment Corporation of Singapore (GIC).


- CNA/so