Singapore says favours subway rail link to Malaysia

SINGAPORE, April 17 (Reuters) - Singapore said on Thursday it welcomed a suggestion by Malaysia to connect the city-state's subway system to the southern Malaysian state of Johor.

"The link should not be a difficult one and it will bring immediate advantages to both sides," Singapore Foreign Minister George Yeo told local reporters, according to transcripts released by his ministry.

Malaysian Foreign Minister Rais Yatim had earlier asked Singapore Prime Minister Lee Hsien Loong to consider connecting the city-state's urban rail network to the Iskandar Malaysia special economic zone.

To be developed over a period of 20 years, Malaysia hopes the 2,200 sq km (850 sq mile) zone in Johor state would be able to generate jobs and investments in projects catering to companies and individuals in wealthy but land-scarce Singapore.

The two countries are separated by a narrow strip of water and connected by two bridges.

Singapore's subway network is managed by SMRT Corp (SMRT.SI) and ComfortDelGro (CMDG.SI), both of which are government-linked companies.

(Reporting by Kevin Lim)