HSIEN LOONG: MALAYSIA, SINGAPORE MUST ADHERE TO TERMS OF WATER DEAL, HSR
Both nations must proceed strictly in accordance with terms, says Lee
WHILE Singapore appreciates the Malaysian government’s reasons to review and change policies of the previous administration, Prime Minister Lee Hsien Loong made it clear yesterday that both countries have to adhere to agreed terms relating to water prices and the Kuala Lumpur-Singapore High-Speed Rail (HSR) project.
Both issues have been sticking points in recent months, with Prime Minister Tun Dr Mahathir Mohamad repeatedly saying that his country was selling water to Singapore at too low a price, and most recently, suggesting that it should be raised by at least 10 times.
Shortly after winning the 14th General Election, Dr Mahathir had said Malaysia wanted to cancel the High-Speed Rail (HSR) project, though Putrajaya had since shifted its position to wanting to defer the project.
Commenting on both issues for the first time at the National Day rally, Lee said the 1962 water agreement between the two neighbours was “sacrosanct”.
“We must proceed strictly in accordance with its terms,” he said.
Noting that Dr Mahathir’s comments on reviewing water prices were not new, since he had raised it multiple times during his first stint as premier from 1981 to 2003, Lee said Singapore Foreign Affairs Minister Dr Vivian Balakrishnan had spelt out the country’s position in Parliament last month to “avoid any misunderstanding”.
Balakrishnan said the 1962 agreement was guaranteed by Singapore and
Malaysia in the 1965 Separation Agreement, which was registered with the United Nations.
“Any breach of the agreement would call into question the Separation Agreement, which is the basis for Singapore’s existence as an independent sovereign state,” said Balakrishnan, adding that “neither Malaysia nor Singapore can unilaterally change the terms of this agreement between our two countries”.
The 1962 agreement and another 1961 agreement that expired in 2011 have long been points of contention.
Under the 1962 agreement, which will expire in 2061, Singapore’s national water agency Public Utilities Board (PUB), may draw 250 million gallons of raw water from the Johor River daily at 3 sen per thousand gallons.
In return, Johor is entitled to receive a daily supply of up to five million gallons of treated water — or 2 per cent of the water supplied to Singapore — at 50 sen per 1,000 gallons.
Singapore had said the cost of treatment was RM 2.40 per 1,000 gallons, while Malaysia sold the treated water to Johor residents at RM3.95 per 1,000 gallons.
Still, Dr Mahathir recently criticised the 1962 agreement as costly and “ridiculous”, while Foreign Minister Saifuddin Abdullah had said it could be reviewed, a suggestion which Singapore had repeatedly rejected, pointing out how Putrajaya had lost its rights to review the price of water in 1987.
Touching on the HSR project, as well as the Johor Baru-Singapore Rapid Transit System (RTS Link), Lee said Singapore entered into these projects “in good faith” after negotiations as they would benefit both countries.
Lee said Singapore Transport Minister Khaw Boon Wan and Economic Affairs Minister Datuk Seri Azmin Ali had met on the HSR issue and were finding a “constructive way forward”.
That notwithstanding, Lee said the HSR and Rapid Transit System (RTS) projects were legally binding, setting out terms that each party had to fulfil, as well as the ramifications if either one wanted to change or terminate the agreements.
“Both sides have to carry out what has been agreed to, unless we mutually agree to vary the terms.”
Dr Mahathir’s administration has pledged to review major projects undertaken by the previous government to trim its RM 1 trillion debt.
Noting that Singapore had worked well with its closest neighbour over the years and collaborated on projects with successive governments, Lee hoped the republic could deepened its partnership with Dr Mahathir and his team “to build on our deep partnership and make further progress together”.
“Ultimately, the fundamentals of our relationship with Malaysia have not changed,” he said, adding that both countries were bound by ties of kinship, history, geography and economics.
“We need to work together to tackle common challenges, and when our interests diverge, we must find constructive ways to resolve our differences.
“If Singapore-Malaysia relations stay stable and close, we can pursue win-win cooperation and focus on our own domestic priorities.”
Noting the global uncertainties amid a trade war between the United States and China and questions over the international system, Lee said the role of the Asean was “all the more important”.
In this regard, Singapore needs to forge close relationships with its neighbours, especially its closest ones in Malaysia and Indonesia, where the election next year will see President Joko Widodo go up against former general Prabowo Subianto in a rematch of the 2014 polls.
Lee said he had worked well with Joko, who would host him to the annual Leaders’ Retreat in Bali in October.