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BRUNEI: Minister Mentor Lee Kuan Yew said as small states surrounded by bigger neighbours, both Brunei and Singapore can complement each other to enhance growth and development. Mr Lee was speaking in Brunei at the inaugural Sultan Omar Ali Saifuddien Memorial Lecture on Wednesday.

Over the years, the two countries have maintained close bilateral relations due in part to the friendship forged between Minister Mentor Lee Kuan Yew and Brunei's first King, Sultan Omar Ali Saifuddien, who was the father of the current king, Sultan Hassanal Bolkiah.

Mr Lee said: "He trusted me because I never took advantage of his friendship to ask for favours. All Singapore prime ministers and ministers have scrupulously followed my policy of never taking advantage of our close friendships with the Brunei royal family and their ministers and officials."

The minister mentor met Sultan Omar Ali in 1960 when he was invited to attend the Sultan's birthday celebrations together with Singapore's first President Yusof Ishak.

"It was during this visit to Brunei that we struck up a friendship that was to grow and endure the rest of his life," said Mr Lee of the late Sultan.

The personal bond has extended to the new generation of leaders. Mr Lee said the close ties continue "between the Sultan and his brothers with the present PM and other leaders of Singapore".

He added that both countries share similar aspirations and concerns in an increasingly uncertain and complex world.

Brunei's Crown Prince Al-Muhtadee Billah echoed this sentiment when he referred to the global financial crisis, saying that it has also impacted Brunei's export-oriented industries.

One major area of co-operation is in defence where both sides enjoy strong ties. Singapore and Brunei conduct regular joint military exercises and exchange programmes.

Mr Lee said: "A recent addition is the Scholars Exchange Programme for scholars from the defence establishments of both countries before they depart for their studies. These exchanges have enabled the officers to enhance their military knowledge.

"More importantly, they get to know one another at a personal level. Such interactions provide the foundation for ensuring that the relationship between our two armed forces remains strong in the coming years."

On the international front, both have shared interests in the region.

"Both bilaterally and multilaterally with our other partners in ASEAN, we can help ASEAN become an integrated, stable and thriving regional association at peace with one another and with our larger neighbours, including China and India," added Mr Lee.

The Singapore dollar is another sign of close ties between Singapore and Brunei. Both countries signed a Currency Interchangeability Agreement in 1967, which means that the Singapore currency can be used in Brunei and vice-versa.

Brunei is the only country that Singapore has signed such an agreement with.