Abstract : Tim Huxley, a prominent academic specialist on Southeast Asian security, caused a stir in Singapore with his publication Defending the Lion City: The Armed Forces of Singapore. He had suggested that Singapore s armed forces were primarily geared to counter Malaysia. Bilateral squabbles over a number of issues such as the water pumped from Malaysia to Singapore, Malaysia s maintenance of a railway station customs post in the heart of Singapore, and curtailed access to Malaysian airspace for the Republic of Singapore Air Force (RSAF) have given the impression that the two countries are in a state of perpetual conflict that could spill over into military hostilities. Yet talk of war by media commentators and even politicians during 2002 prompted the prime ministers of both countries to deny the possibility of armed conflict between the two neighbors. However sensational the headlines, Malaysia and Singapore enjoy a relationship that is the most complementary in ASEAN. Both are heavily interdependent in terms of capital, people movement, goods and services, and resources (particularly water). Only Malaysia and Singapore engage in substantial routine military exercises together as part of FPDA. Both have also placed the threat of terrorism high on the national agenda and even coordinated raids on Jemaah Islamiyah (JI) members in December 2001.