Prime Minister Surayud Chulanont assured Singapore on Monday that his government would not intervene in the Temasek-Shin Corp takeover scandal.

Surayud told Singapore Prime Minister Lee Sein Loong the matter would be left entirely to the law courts to determine. Both met at the sideline of the 15th Asean-China summit in Nanning, China which started on Monday.

"When the Singapore prime minister raised the case of Temasek's purchase of Shin Corp during the meeting, I informed him that the case was an investment agreement that was already done.

"Although they now have some legal problems, I reiterated that everything would be done according to Thai laws and by the Thai justice system," Surayud told reporters after the meeting.

He stressed the government would not intervene in the matter.

Temasek Holdings is the Singapore government's investment arm. Lee was worried because of an investigation by Thailand into whether Temasek employed "nominee" companies to buy Shin Corp and circumvent laws pertaining to foreign ownership of businesses in Thailand.

Surayud added relations between Thailand and the city state remained "excellent" and his government would continue to promote cooperation with Singapore.

Surayud briefed Lee on the current political situation as well as the South insurgency.

He would visit to Singapore ahead of the Asia Pacific Economic Cooperation in Hanoi between November 14-19.

Singapore, Brunei and Burma remain the only Association of Southeast Asian Nations countries Surayud is yet to visit since being appointed prime minister.

Surayud is scheduled to meet leaders of Burma and Brunei on the sideline of the Nanning summit.