KL TO REVIEW S’PORE DEAL
The agreement, which expires in 2061, is too costly, says Dr Mahathir
PRIME Minister Tun Dr Mahathir Mohamad is seeking to renegotiate a longstanding water supply deal with Singapore, criticising the 1962 agreement with the republic as “too costly”.
His remarks on the water issue, made during an interview with Bloomberg Television on Friday, came weeks after he announced plans to cancel a multibillion-dollar high-speed rail project that would have connected Kuala Lumpur to Singapore.
Water was among issues with Singapore “that we need to settle”, Dr Mahathir said at his office here. “We will sit down and talk with them, like civilised people.”
In another interview later with Channel NewsAsia, he said Kuala Lumpur was studying the case and would “make a presentation”.
“I think it is manifestly ridiculous that we should sell water at 3 sen per 1,000 gallons. That was okay in the 1990s or 1930s. But now, what can you buy with 3 sen? Nothing,” he told the broadcaster.
Under the 1962 Water Agreement, Singapore’s national water agency, the Public Utilities Board, may draw 250 million gallons of raw water daily from Johor at 3 sen per 1,000 gallons.
In return, Johor is entitled to receive a daily supply of treated water of up to two per cent, or about five million gallons a day, of the water supplied to Singapore.
The agreement, which expires in 2061, has been a constant source of political wrangling over the years.
In December 2016, however, former prime minister Datuk Seri Najib Razak said Malaysia would supply Singapore with the share of water due to it under the 1962 agreement despite challenges that affect the water supply from Malaysia, such as the receding water levels at the Linggiu reservoir.
Dr Mahathir said he would be friendly with Singapore and other nations while focusing on striking fair deals and ensuring balance.
“I think we can benefit from each other. We need the expertise of Singapore. Lots of Singapore people invest in Malaysia because it’s much cheaper here.”
During the interview, he also took potshots at the United States and China.
Dr Mahathir said he was reviewing Chinese investments and called United States President Donald Trump “mercurial”, noting how the US leader flipflopped on his decision to meet North Korean leader Kim Jongun at a summit in Singapore earlier this month.
“He changes his mind within 24 hours. When you have a man like that, you need to be cautious.”
Dr Mahathir’s willingness to push back against the world’s biggest economic powers contrasts with Najib, who golfed and dined with US presidents and dubbed himself a “true friend” of China.
Dr Mahathir’s comments recall his run in power from 1981 to 2003, when he bickered with Singapore on water and land issues, tussled with the International Monetary Fund and dubbed billionaire US financier George Soros a “moron” for his role in the ringgit’s drop.
While Najib’s administration rushed to complete legal changes needed to implement the TransPacific Partnership agreement, Dr Mahathir called for a revision of the 11-nation trade pact to protect the interests of small economies.
Some terms the US inserted before it withdrew placed countries like Malaysia at a disadvantage, he said.
“I don’t believe in free trade, absolute free trade, because when the competition is between the weak and the strong, you need to have some protection for the weak,” he said.
During his 14th General Election campaign, Dr Mahathir pledged more scrutiny on Chinese investment, which stoked political tensions from Australia to Sri Lanka, and triggered fears over sovereignty and economic inequality in the trade-dependent nation.
Najib had dismissed these concerns as “scare-mongering” and said commercial ties were key to a healthy, diversified economy.
Malaysia is strategically placed on the Strait of Malacca, through which about 40 per cent of global trade flows. That makes it a prime destination for China’s Belt and Road Initiative that aims to finance hundreds of billions of dollars worth of infrastructure in emerging markets.
Since taking power, Dr Mahathir has raised questions about the US$34 billion (RM136 billion) worth of governmentbacked projects, including a gas pipeline and the East Coast Rail Line that’s estimated to cost RM55 billion.
“We will have to slow down, defer and things like that, simply because we do not have the money,” Dr Mahathir said.