In a speech to the city-state's Chinese Chamber of Commerce and Industry late Wednesday, Yeo said difficulties occasionally arose between neighbours but "we take such problems in our stride."

"In the case of Thailand, I am confident that we will be able to put relations back on track because not only are our links with Thailand extensive and deeply-rooted, we also share many common interests."

Yeo also revealed he had written to his Thai counterpart Nitya Pibulsonggram to thank him for security measures protecting Singaporean fans during the Asean football finals in Bangkok on Sunday.

Thailand deployed 1,500 police amid tension over a controversial first leg penalty that gave the Singaporean side a 2-1 win during the match here on January 31. Singapore held Thailand to a 1-1 draw in Bangkok to retain the championship with a 3-2 aggregate win.

Relations between Thailand and Singapore have plunged since a military coup last year ousted Thai prime minister Thaksin Shinawatra amid allegations of abuse of power, including the tax-free sale of Thai telecom giant Shin Corp to state-linked Singapore investment firm Temasek Holdings.

The army-installed government in Bangkok has opened several investigations into the Temasek's purchase of Shin Corp, founded by Thaksin before he entered politics.

Relations were further strained after an unofficial meeting between Thaksin and Singapore Deputy Prime Minister S Jayakumar during a recent visit by the deposed premier to the city-state.

 Last month, Thai junta leader General Sonthi Boonyaratglin accused Singapore of eavesdropping on army phone conversations, prompting a strong rebuttal from the Singapore foreign ministry.

Thailand said it had formed a special panel to probe the eavesdropping claims.