He was replying to MP Chiam See Tong (Potong Pasir), who asked if Singapore would approach Indonesia to lease one of its 17,000 vacant islands to develop it for mutual benefits.

He posed the question following Indonesia’s willingness to lease an island to an Australian company for use as a tourist resort.

Singapore, said Mr Yeo, was not in the position to comment on Indonesia’s decision to lease its islands to private companies. 

However, private companies in Singapore are free to enter into commercial agreements with Indonesian provinces, he added, while stressing that these pacts do not involve the Government.