An Islamic group in Singapore has praised the ceasefire between Israel and Palestinian militants while noting the current situation is "very delicate," letters to ambassadors said Friday.

It was heartening to hear calls for restraint and the upholding of the recently declared ceasefire led by Israeli Prime Minister Ehud Olmert and Palestinian Authority Prime Minister Ismail Haniyeh, said the Singapore Islamic Scholars and Religious Teachers Association.

"This is a commendable act on the part of the two leaders," the association said in letters sent to Israeli Ambassador to Singapore Ilan Ben-Dov and Palestinian Ambassador to Malaysia Ahmad al-Farra in Kuala Lumpur.

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The association is the main grouping of Islamic religious teachers in the city-state. Fourteen per cent of Singapore's predominantly Chinese population are Muslim Malays.

Leaders on both sides were urged "to quickly pursue a more effective peace process so that true peace shall prevail."

The association also called for the lifting of financial sanctions "that have crippled Palestine."