JAKARTA -- Indonesia and Singapore agreed on Monday to continue cooperating in fighting the region's two greatest security scourges -- piracy and terrorism, said visiting Singaporean Deputy Prime Minister Tony Tan.

"We discussed the issue of piracy which is our prime concern," said Tan, after he held talks with Indonesian President Megawati Sukarnoputri, who is also Supreme Commander of the Armed Forces, and Indonesian Defense Minister Matori Abdul Tjalil.

Tan, who is also Singaporean defense minister, said the two countries' navies would continue to cooperate in fighting piracy in the straits of Malacca -- where more cases of modern day piracy occur than anywhere else of earth.

The two defense forces also pledged to continue their cooperation in intelligence information exchange on terrorism. Tan said cooperation between the two countries on counter-terrorism was "very important for the stability of this part of the world."

"We will continue the good cooperation between the two armed forces (on counter terrorism)," he told DPA.

Several high-ranking Singaporean officials last year criticized Indonesia, the world's most populous Muslim nation, for being a laggard in cracking down on terrorist suspects within its borders.