*** Yugoslavia splinters, Eritrea regains independence from Ethiopia, the Soviet Union disintegrates, secessionist sentiment bubbles in Canada — sometimes it looks as though there is a worldwide trend towards national break-ups. But not everywhere. A Gemini News Service correspondent Bob Holmes from Kuala Lumpur, reports murmurs of merger in south-east Asia. • ***

Singapore had to remain competitive, organised and tightly knit, or it would eventually be “absorbed", he told an open-mouthed audience. "Rejoining would be difficult to achieve for a very long time, but I hope that one day it will happen."

Almost as surprising was Malaysian Prime Minister Mohamad Mahathir’s refusal to dismiss the notion. T do not think the time is yet," he commented. "Maybe one day."

It set the chattering classes of both countries into overdrive. Editorials expounded. Readers wrote in. Radio stations polled listeners, and almost everyone was against the idea.

Singapore’s Prime Minister Goh Cnofc Tong raised the issue again during hi* annual national day speech in August. This time, however, it was clear the island's leadership was using the issue as a warning to its citizens. "Don't slacken or else." was the gist of the message.

While saying "reunification is not on my political agenda".

Goh added: "If Singapore's economic competitiveness were to falter, it could be forced to ask Malaysia to lake it back — and on Malaysian terms."

That was the reason, he explained. behind Lee's remarks. He said Lee felt Malaysia was doing very well and could become even more competitive.

Goh was urging Singaporeans to keep their hands to the Eump. But he did not go as far as is mentor, who also said: "If they (the Malaysians] go the whole road with us [advancing and reducing racial tensions], then I say we rejoin them because this is what we fought for.

"It will take some time," Lee continued, "but the road we are going — pursuing maximum economic benefit — if we carry

it to its logical conclusion ... the difference between Singapore and Malaysia will narrow.

But he added an important rider: We will not join unless Malaysia practises rnerito< racy."

This scratches old racial dif ferences The statement requires Malaysia to abandon its preferential treatment of Malays, who form 50 per cent of its population. Both nations have a racial mix consisting largely of Malays. Chinese and Indians but in Singapore ( hi nese form a 77 per cent major >iy

Mahathir was not slow to make capital out of the per celvrd insult: "Singapore is us ing us as a bogeyman ... and is practising racial discrimina-

tion itself. This can be seen by the l.nl that Malays are not allowed to hold high posts in the armed forces, become pilots or bear arms in that country

Despite this til for tat. Ilie fact remains that there are many similarities between the states The people share a com mon colonial history and I he economic' and pliysn al links are strengthening

As both societies become more sophisticated they be come more similar

Claustrophobic Singapore ans Hood <>vei th^ < a useway into Malavsi.i m gel oft their overcrowded island Many buy properties on the mainland A second Causeway between the neighbours will open next year and a bridge is planned

Malaysia's Nem straits Times commented Singapore investment in Malaysia belli in terms ot property and business is growing al such an ex lent that national Ixjundanes will eventually be but a formal My"

A < nictal factor in any pos slblr re marriage Is that

Malaysia, once sneered at by rich Singaporeans, is gaining respect The growth rates are similar and the incomes gap is narrowing.

What is more, most Malaysians own cars — something few Singaporeans achieve because ot prohibitive taxes.

Singaporeans have long worked for the five Cs —career, condo credit card club and car. with the Iasi the most elusive Malaysians are beginning to leel sorry tor the poor little nch guys south ot the peninsula — all dressed up ana nowhere to go except to Malaysia

What Singaporeans need most is land and Malaysians have n An international port city and another financial ten tre c ould lx* coveted by the next generation ol Malaysian politi cians The more one looks at a merger the more advantages one uin see tor I with sides

Bui perhaps the biggest la* lot in its favour is that todays politicians have the luxury of not being around if and when It happens