Malaysian Prime Minister Najib Razak said the recent agreement with Singapore over the Malayan Railway Land and train station at Tanjong Pagar is a major breakthrough.
Mr Najib said resolving this outstanding issue is a signal that Malaysia wants to move forward.
He said: "We want to deepen and strengthen our existing ties. We should not be emotional and we should not carry the baggage any more but we should move forward and with a sense of confidence that we can benefit from this new enthusiasm in terms of bilateral ties."
Singapore and Malaysia are expected to conclude a deal on exchanging land parcels in three months.
The announcement came after a meeting between the two prime ministers in Putrajaya, Malaysia last week.
Singapore Prime Minister Lee Hsien Loong will make a one-day visit to Malaysia on Tuesday.
Wisma Putra said in a statement here Monday that Lee will have a four-eye meeting with his counterpart Datuk Seri Najib Tun Razak and co-chair the Delegation Meeting.
Both Prime Ministers will then be holding a joint press conference.
According to Wisma Putra, both leaders are expected to follow up on the valuation of land and the proposal of the land swap discussed during the Leaders' Retreat in Singapore on May 23 and 24.
"The visit will further strengthen bilateral relations between the two countries," said the Foreign Ministry.
The development of KTM Bhd (KTMB)-owned land in Singapore is a breakthrough that will bring economic advancement to both Malaysia and Singapore, Khazanah Nasional managing director Tan Sri Azman Mokhtar said Thursday.
The valuation of properties totalling 271 hectares has begun and will be completed within a month, he told the media on the sidelines of the Performance Management and Delivery Unit (Pemandu)'s Rationalisation Subsidy Open Day here.
Asked if the valuation would be based on Singapore market rates, he said it was being done by independent parties and each side would present their valuations.
Saya mengikuti perkembangan dan kemajuan hubungan 'benci tapi sayang' Malaysia dan Singapura sejak awal 1990-an lagi, selepas kedua-dua negara menandatangani dokumen Perkara-perkara Yang dipersetujui (POA) pada 27 November 1990. Dokumen yang dirundingkan (secara tertutup) oleh bekas Menteri Kewangan, Tun Daim Zainuddin dan bekas Perdana Menteri Singapura, Lee Kuan Yew terus 'menghantui' hubungan erat dan kerjasama padu kedua-dua negara.
Emotional issues with Singapore are passe. It should be business and economic interests now between two neighbours.
It is a 217ha of land that runs from the north to the south of Singapore – the size of almost 300 standard football fields. A valuation exercise carried out last year found the total land area to be worth up to S$4bil (RM9.5bil).
The KTM Berhad railway land has been a thorny issue between Malaysia and Singapore for almost 20 years.
There had been plenty of arguments and bad blood over the railway land that was leased from Singapore.
To Malaysia, the land represents its sovereignty while Singapore wants to develop it.
His breaking Singapore-Malaysia bilateral gridlock a domestic and international triumph
Mr Najib Abdul Razak could not have expected an easy time after taking over as Malaysia's Prime Minister in April last year. The failure of his predecessor's reform initiatives had allowed the political scenario to change to such an extent that his party and his coalition were now in a defensive mode.
This was clearly seen 10 days ago when his coalition lost the parliamentary seat in Sibu, Sarawak, to the opposition.
However, there had always been space for him in at least two areas to make an impression as national leader and reformist.
Has the long insipid Malaysia-Singapore relations already reached the tipping point?
Or is the stage already set for the two neighbouring countries to take their relationships to greater heights, establishing better ties, greater economic cooperation, and renewing business collaboration?
And if yesterday's meeting between Prime Minister Datuk Seri Najib Tun Razak and his Singapore counterpart Lee Hsien Loong was any indication, the bland relations between the two countries are now set to enter a new phase.
"In war as in life, it is often necessary when some cherished scheme has failed, to take up the best alternative open, and if so, it is folly not to work for it with all your might," so said British statesman and orator, the late Sir Winston Churchill, when he spoke about overcoming obstacles.
Perhaps it was this spirit that served as a guiding force when Prime Minister Datuk Seri Najib Tun Razak and his Singaporean counterpart, Lee Hsien Loong, met recently to resolve the protracted issue over the Malayan Railway (KTM Berhad) land in Singapore.
Some of the problems that existed between Malaysia and Singapore had once been described as "dead-knot" issues by Singapore's then Prime Minister and now Senior Minister Goh Chok Tong.
Penganalisis ekonomi anggap penyelesaian isu tertunggak pererat hubungan
Penganalisis ekonomi menganggap persetujuan yang dicapai Malaysia-Singapura kelmarin umpama terbinanya ‘jambatan ketiga’ dalam mengeratkan hubungan sosial perdagangan dan ekonomi antara kedua-dua negara.
Pengarah Eksekutif Jupiter Securities, Nazarry Rosli, berkata dari segi ekonomi, penyelesaian isu tertunggak lebih 20 tahun antara kedua-dua negara itu bakal meningkatkan keyakinan pelabur dan peniaga untuk melabur, khususnya di Johor.
“Malaysia dan Singapura sudah memiliki hubungan rapat politik sejak sekian lama, namun beberapa isu yang menjadi duri dalam daging yang kerap kali menyebabkan beberapa pihak kecil hati, memberikan kesan negatif dalam hubungan perdagangan dan pelaburan.
Singapore’s Prime Minister Lee Hsien Loong is meeting his Malaysian counterpart, Najib Razak, who's here for a two-day visit.
It’s Mr Lee’s second retreat meeting in just a week with a close neighbour of Singapore.
Singapore’s Foreign Ministry says both Leaders will discuss ways to enhance bilateral cooperation and exchange views on regional developments.
Accompanying Mr Najib are several Ministers.
They will have separate meetings with their Singapore counterparts to explore areas of cooperation before a joint delegation meeting led by the two Prime Ministers.
Singapore's closest neighbour, Johor's Chief Minister, Abdul Ghani Othman is part of the Malaysian delegation.