Yeo was reacting to a suggestion in parliament that Singapore should scrap government-to-government programmes with Thailand and instead use the money to upgrade public housing.

 Thailand suspended a civil service exchange programme to protest a visit by ousted Thai prime minister Thaksin Shinawatra to Singapore last month, during which he met the city-state's deputy prime minister, S. Jayakumar.

 "I think it is important for us to be very rational in our responses towards reactions in Thailand. They are going through a difficult patch," Yeo said.

 Thailand's military ousted the elected leader Thaksin in a bloodless coup last September.

 "In the run-up to the coup there was a lot of unhappiness in Thailand. The coup itself has created a new drama. It's a tough period for them," he said.

 "We hope that they can return to constitutional rule as quickly as possible and a government which ensures fairness and justice for the Thai people. Our hearts are with them and we wish them well.

 "It is certainly not in our interest to aggravate the situation by reacting in an emotional way."

 Yeo reiterated that Singapore had no reason to deny Thaksin entry to Singapore, where he held a private meeting with his "old friend" Jayakumar.

 Relations between Singapore and Thailand have been strained since the military overthrew Thaksin.

 The army-installed government has vowed to investigate the sale of Thaksin's telecom giant Shin Corp to Singapore's state-linked investment firm Temasek Holdings.

 Thaksin's family sold their 49 per cent stake in Shin Corp to Temasek for 1.9 billion dollars under a tax-free deal in January 2006, sparking months of street protests and unrest that eventually led to the military putsch.