A day after receiving a letter of demand, blogger Alex Au has apologised to Prime Minister Lee Hsien Loong for "false and baseless allegations" made on his blog.
He also took down the post and comments that had been highlighted in the lawyer's letter.
Mr Au had on Friday said that he accepts that the post and comments were defamatory. But he went on to add that the episode "should not distract from the issue of the sale of town council software to Action Information Management".
Together with his apology on Saturday, he said that he would write a further article "discussing the effect of this turn of events on the AIM saga".