Tuesday 26 June 2018

Malaysia's Mahathir taunts Singapore over water, again, in June 2018


Mahathir Mohamad says price of water sold to Singapore 'ridiculous', seeks to renegotiate water supply agreement while taking potshots at both Donald Trump and China





Singapore, Malaysia must comply fully with 1962 water agreement provisions, says MFA in response to Mahathir comments
Foreign Ministry responds after Malaysian PM Mahathir criticises price of water and speaks about renegotiating water agreement
By Royston Sim, Deputy Political Editor, The Straits Times, 26 Jun 2018

Singapore has reiterated that both Malaysia and the Republic have to adhere fully to the 1962 water agreement, after Malaysian Prime Minister Mahathir Mohamad yesterday criticised the price of raw water sold to Singapore as "ridiculous", and said he planned to renegotiate the pact's terms.

In a statement yesterday, a Ministry of Foreign Affairs (MFA) spokesman said that the 1962 treaty was guaranteed by both governments in the Separation Agreement, which was registered with the United Nations when Singapore broke away from Malaysia in 1965.

"Both sides must comply fully with all the provisions of these agreements," the spokesman said.


In separate interviews with Channel NewsAsia (CNA) and Bloomberg Television, Tun Dr Mahathir revived the water price issue which was a recurring source of tension between both countries, especially during the later half of his previous term as prime minister from 1981 to 2003.

He told CNA that the price - 3 sen per thousand gallons - is "ridiculous", and that Malaysia will approach Singapore on renegotiating the terms of the deal.

Asked if he will talk to Singapore about going back to the drawing board on the issue, Dr Mahathir said: "We are studying the case properly and we will make a presentation."

However, he said it is "not urgent" during a news conference yesterday after a Parti Pribumi Bersatu Malaysia supreme council meeting.

On whether the Cabinet discussed the matter before his media interviews, he replied: "We didn't discuss the water issue. But I was asked by the press."

The water agreement, which expires in 2061, entitles Singapore to draw up to 250 million gallons a day (mgd) of raw water from the Johor River daily. In return, Johor is entitled to a daily supply of treated water of up to 2 per cent or 5 mgd of the water supplied to Singapore.

Singapore pays 3 sen per thousand gallons of raw water, and sells treated water back to Johor at 50 sen per thousand gallons.


In his interview with Bloomberg published yesterday, Dr Mahathir criticised the 1962 water supply deal with Singapore as "too costly", and said it is among the issues with Singapore "that we need to settle". This follows on his announcement last month that Malaysia plans to scrap a multi-billion-dollar high-speed rail (HSR) line from Kuala Lumpur to Jurong East. He has yet to inform Singapore about its intent, he confirmed during the CNA interview.

In an earlier interview with The Straits Times in March, before he won the election last month and became prime minister for a second time, Dr Mahathir described the price of the water sold to Singapore as "absurd".


A veteran diplomat who declined to be named told The Straits Times Dr Mahathir is reviving the water price issue now as he has never accepted the terms of the 1962 pact.

The 1961 and 1962 water agreements provided for a price review after 25 years - in 1986 and 1987, respectively. Malaysia chose not to review the price then, MFA said in an article on its website on the issue.

But Singapore allowed for a renegotiation of the issue when Dr Mahathir later raised it in 1998.

Over the span of four years, both countries underwent several rounds of talks on water and other bilateral issues as part of a package. Malaysia continually raised its asking price for water, and the matter became a sore point in relations.

In October 2002, Dr Mahathir decided to abandon the process.

In January 2003, then Foreign Minister S. Jayakumar made public all correspondence on the matter, and the Government released a booklet, Water Talks, to debunk Malaysia's claims.

In it, the Government said that it costs Singapore RM2.40 to treat every thousand gallons of water. By selling at 50 sen, Singapore is providing a subsidy of RM1.90 per thousand gallons of water.



"His intention is to make the Singapore Government look unreasonable hoping, first, that Singaporeans will pressure our government on his behalf, and, second, to set up an alibi with his own people," he said.

"All this is out of Dr M's standard playbook. Singaporeans should not be deceived. Good neighbourliness ought to be a two-way street."



It also said Johor sold the treated water to Johoreans at RM3.95 per thousand gallons, which amounts to RM46 million in profits a year.

All in, Singapore has paid over $1 billion on various water treatment infrastructure, including building a dam to create the Linggiu Reservoir that increases the yield of the Johor River, said the Government.

In a Facebook post yesterday, diplomat Bilahari Kausikan said Malaysia buys "considerably more" treated water from Singapore than it is entitled to under the terms of the agreement. "Why should it do that unless it is getting a good deal?" he wrote.

In a written parliamentary reply last year, Foreign Minister Vivian Balakrishnan said Singapore has been regularly supplying Johor with 16 mgd of treated water - in excess of its entitlement.



Mr Kausikan said he believes Dr Mahathir is now raising the water issue "only as a diversionary tactic" in preparation to ask for a waiver or reduction of the compensation Malaysia has to pay Singapore if it formally cancels the HSR project.











































Price of water sold to Singapore 'ridiculous'; Malaysia to renegotiate deal, says Mahathir
By Sumisha Naidu, Channel NewsAsia, 25 Jun 2018

PUTRAJAYA: The price of water being sold to Singapore is "ridiculous", and Malaysia will make a presentation to its neighbour on renegotiating the terms of the water supply deal, Prime Minister Mahathir Mohamad said on Monday (Jun 25).

"I think it is manifestly ridiculous that we should sell water at 3 sen per thousand gallons. That was okay way back in the 1990s or 1930s. But now what can you buy with 3 sen? Nothing," the 92-year-old told Channel NewsAsia in an exclusive interview.

Earlier, Bloomberg had reported that Dr Mahathir intended to go back to the drawing board on the water accord, which is set to expire in 2061.

"We are studying the case properly and we’ll make a presentation," he told Channel NewsAsia.



The revival of the water issue comes on the back of Dr Mahathir's decision to scrap the Kuala Lumpur-Singapore high-speed rail project agreed upon by the previous Najib Razak administration.

Dr Mahathir had cited a need to reduce the country's debt and liabilities exceeding RM1 trillion (US$251 billion) as the reason for scrapping the deal. Singapore has, however, stated that it has not been informed of Malaysia's intent.

At the interview, Dr Mahathir was asked about his foreign policy decisions, and he conceded that Malaysia had yet to inform Singapore about its intentions on both issues.

"Sometimes we make public statements without actually finalising the process," he said. "When we want to make a decision we don't wait until we inform Singapore, we just say something. Of course they would want to know, and we will inform them in time."

Asked if there is any timeframe on when he's planning to inform Singapore, he said: "It's not so urgent."

Dr Mahathir repeated this during a press conference on Monday evening, when he was asked again if he would be speaking to Singapore on renegotiating the water deal.



"It's not urgent," he reiterated. "We have many other problems that we have to focus on".

At the same conference, he also confirmed that the water issue had not been discussed in Cabinet before he made his comments, but that he was "pressed to announce" the issue after being "asked by the press".

Earlier, Malaysia's longest-serving prime minister said any bilateral problems that may arise from these choices could be resolved. 

"I think whether we like it or not, Singapore is our closest neighbour and we have a common history. Whether we like it or not, we have to live with each other," he said.

"There will be little problems, conflicts and all that, (but) we'll resolve them."



WATER AGREEMENT "SACROSANCT" TO SINGAPORE

In a response to Dr Mahathir's comments later on Monday, the Singapore Ministry of Foreign Affairs (MFA) said both Malaysia and Singapore must "comply fully" with the provisions of the 1962 Water Agreement and the 1965 Separation Agreement.

"The 1962 Water Agreement is a fundamental agreement that was guaranteed by both governments in the 1965 Separation Agreement which was registered with the UN," a spokesperson said in a statement. 

Singapore Prime Minister Lee Hsien Loong and Malaysia's former prime minister Najib Razak in January had reaffirmed the importance of undertaking measures to ensure the reliable and adequate water supply from the Johore River as provided for in the 1962 Water Agreement.

In a joint statement issued after a Singapore-Malaysia Leaders' Retreat, both countries also affirmed the terms of the agreement, under which Singapore is given full and exclusive rights to draw up to a maximum of 250 million gallons (mgd) of water per day from the Johore River.

In return, Johor is entitled to buy treated water of the same volume as up to 2 per cent of the water extracted by Singapore on any given day, or about 5 mgd if Singapore draws its full entitlement of water from the Johor River.

In February this year, then-Minister in the Prime Minister’s Office Chan Chun Sing said Singapore must ensure that it has an adequate supply of water by the 2050s, before the water agreement with Malaysia expires in 2061.



Under national water agency PUB’s masterplan, NEWater and desalination will meet 85 per cent of Singapore’s water demand by 2060. That is also when the total water demand is expected to double.

In a written Parliamentary reply to Member of Parliament for Marine Parade GRC Seah Kian Peng in January 2017, Minister of Foreign Affairs Vivian Balakrishnan said the 1962 Water Agreement was "sacrosanct" to Singapore.

"It was guaranteed by both the Governments of Malaysia and Singapore under the 1965 Separation Agreement, which was deposited with the United Nations," he said.

In March 2017, Deputy Prime Minister Teo Chee Hean said Singapore must be psychologically prepared to face water shortages if its reservoirs dry up and when the second water agreement with Malaysia ends in 2061.

At present, imported water meets half of Singapore’s water needs. But water levels in Johor’s Linggiu Reservoir are falling. There is also the danger of prolonged dry weather, Mr Teo said at the time.















































Johor Crown Prince thanks Singapore for helping Johor during drought seasons
The Straits Times, 29 Jun 2018

JOHOR BARU - Johor's Crown Prince Tunku Ismail Sultan Ibrahim has thanked the Singapore Government for helping the Malaysian state during drought seasons.

Calling Singapore "a neighbour and a friend", Tunku Ismail said in a tweet on his official JohorSouthernTigers account on Thursday (June 28): "Thank you to the Singaporean Government for helping Johor during the drought seasons & when we had our water crisis. We have always helped each other. May the close ties & friendship forged hundreds of years ago last forever."


His tweet came as the Malaysian government said it planned to renegotiate the 1962 water supply deal with Singapore.

Prime Minister Mahathir Mohamad has in recent interviews criticised the deal as "too costly", and said that Malaysia will approach Singapore to renegotiatie the terms of the deal.

Singapore's Ministry of Foreign Affairs said the 1962 treaty was guaranteed by both governments in the Separation Agreement, which was registered with the United Nations when Singapore broke away from Malaysia in 1965 and that both sides must comply fully with all the provisions of these agreements.

In 2016, Singapore's national water agency Public Utilities Board (PUB) supplied additional potable water to Johor after water levels in the southern state's dam hit all-time low levels due to the dry weather.

Under the 1962 Water Agreement, PUB is entitled to draw up to 250 million gallons of water from the Johor River daily. In return, Johor is entitled to a daily supply of treated water of up to 2 per cent - or five million gallons - of the raw water it supplies to Singapore.

Over the years, PUB has - at Johor's request - supplied about 16 million gallons of potable water per day to Johor. During the drought season in 2016, PUB increased Singapore's supply of treated water to Johor to 22 million gallons daily.



Besides the water deal, the new Malaysian government has also said it would review the multi-billion dollar Singapore-Kuala Lumpur High-Speed Rail project. Dr Mahathir has said Malaysia needs to scrap big budget projects so that it can reduce its US$250 billion national debt.

In an interview with The Straits Times on Thursday (June 28), Malaysia's Defence Minister Mohamad Sabu said he is confident that the two sides can resolve these bilateral issues.

He said that relations between Malaysia and Singapore go through periodic problems, but the two neighbours are adept at resolving them.

"Singapore is our most important neighbour. There will always be problems, it is normal, even married couples have problems, but they can be resolved," Mr Mohamad said. "So far, there is no problem that cannot be resolved between Malaysia and Singapore. We are good neighbours."

Social media users mostly welcomed Tunku Ismail's comments, which were also posted on his official Facebook page.

Facebook user Vicknesh Rajamohan said: "Class act Your Highness. A true inspiration of how a leader should conduct (himself). Wisdom is not in age but in actions, and you have shown your wisdom."

Netizen Nasrulhadi Noh posted: "Many forget that during the July 2016 drought, Singapore supplied an additional 6 million gallons of water a day to Johor. That is what neighbours are for."

Some, however, asked why Johor could supply water to Singapore, but could not collect and treat enough water for its own citizens, who undergo intermittent water rationing in towns like Muar. A Mohd Nizam wrote: "Johor sells water to SG... SG citizens never had problems with water (supply). But the country where the water comes from has water problems everywhere."

Others said the Prince's praise for Singapore was actually an indirect attack on Tun Dr Mahathir for wanting to renegotiate the water deal.

Wrote Azhar Latif: "TMJ (Crown Prince)'s statement has a deeper meaning that will redden the ears of Tun (Mahathir)."



























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* Johor chief minister suggests raising price of water sold to Singapore by almost 1600%
State may charge 50 sen per 1,000 gallons of raw water, up from 3 sen, says Menteri Besar
The Straits Times, 6 Jul 2018

JOHOR BARU • Johor's Menteri Besar Osman Sapian said the state hopes that it can raise the price of the raw water that it sells to Singapore after discussions with its southern neighbour.

The price could well be raised from the current 3 Malaysian sen (1.01 Singapore cent) per 1,000 gallons to the same level that water is sold to Johor's northern neighbour Melaka - at 50 sen per 1,000 gallons, he told a news conference yesterday. "It is about time that we raise it. Maybe we will increase it to the price of raw water that we sell to Melaka," the Astro Awani news site reported him as saying.

"Or maybe with further discussion, the price that will be sold to Singapore will be less than the price sold to Melaka, but it will not be at the current price that Singapore buys it now."



Datuk Osman said that he discussed the issue with Prime Minister Mahathir Mohamad last week, the news site of the private TV channel said.

Mr Osman said Malaysia will study the water agreement with Singapore to see whether the price could be reviewed.

"This needs further discussion. I feel that if the Johor government were to raise it to a reasonable rate, Singapore will accept it because that is our hope," he added.

Tun Dr Mahathir had, in recent interviews, criticised the 1962 water deal as "too costly" and "ridiculous", and said Malaysia would approach Singapore to renegotiate the terms of the deal.

Dr Mahathir said last month: "We are studying the case properly and we will make a presentation", but he said the issue is "not urgent".



Singapore's Ministry of Foreign Affairs said the 1962 treaty was guaranteed by both governments in the Separation Agreement, which was registered with the United Nations when Singapore broke away from Malaysia in 1965.

Singapore says both sides must comply fully with all the provisions of these agreements.

The water agreement, which expires in 2061, entitles Singapore to draw up to 250 million gallons a day (mgd) of raw water from the Johor River.

In return, Johor is entitled to a daily supply of treated water of up to 2 per cent, or 5 mgd, of the water supplied to Singapore.










** Malaysia will honour water deal with Singapore, says Foreign Minister Saifuddin Abdullah
But it seeks to restart talks on pricing; he calls KL-Singapore High-Speed Rail the pressing issue
By Shannon Teoh, Malaysia Bureau Chief In Kuala Lumpur, The Straits Times, 25 Jul 2018

Malaysia will honour the water agreement with Singapore while seeking to restart negotiations on pricing, said Foreign Minister Saifuddin Abdullah, who described discussions over the Kuala Lumpur-Singapore High-Speed Rail (HSR) as the "immediate and urgent" concern between the two neighbours.

Datuk Saifuddin, who is due to visit Singapore next week for a meeting of Asean foreign ministers, waved away concerns about "turning off the taps", saying such a move "is definitely not in our mind".

"Water is like our nerve system. We honour our nearest neighbour. Malaysia and Singapore have always enjoyed that special relationship. The idea is how we go about to continue from where we have stopped in the negotiation," he told The Straits Times in an exclusive interview yesterday.



Mr Saifuddin said "water is a long story" with "nothing concrete decided" except that "we will continue talking to" Singapore.

"What is immediate and urgent is to resolve the HSR story," he said, adding that Malaysia has agreed to a "proper discussion" by next Tuesday. "We understand certain parts of the agreement will confine us to more or less agreeing to continue but again, these are things that we want to negotiate. I believe that our Singapore counterpart will understand some of the difficulties the new government is faced with as far as this project is concerned."

Soon after winning the May 9 election, the Pakatan Harapan (PH) government had said it wanted to review the 350km rail project agreed to by the ousted Najib Razak administration, as well as to renegotiate the terms of the 1962 water deal.

Both pacts are legally binding international agreements.

Kuala Lumpur said it could not afford the RM110 billion (S$37 billion) projected cost for the HSR, after discovering it had more than RM1 trillion in liabilities. But due to cancellation penalties in the pact, it would have to discuss options with Singapore, including a deferment.

Economic Affairs Minister Azmin Ali will lead negotiations on the HSR, and has said he will try to hold talks by the end of the month.



The water agreement, which expires in 2061, sees Singapore drawing up to 250 million gallons a day (mgd) of raw water from the Johor River, and Johor entitled to 5mgd of treated water from Singapore.

Singapore pays 3 sen (1 Singapore cent) per thousand gallons of raw water, and sells treated water back to Johor at 50 sen per thousand gallons. Singapore has said this price is heavily subsidised and below the cost of treating the water.

Malaysia chose not to review the price when allowed to in 1987, but talks took place when then Prime Minister Mahathir Mohamad raised the issue in 1998. The talks did not result in a new pact.

Mr Saifuddin, who is PH chief secretary, also said Malaysia could learn from Singapore in maintaining religious harmony. "I think they have done a good job," he said. "We have our issues, they have their issues, but to a certain extent, they have done quite well and we can emulate, if not all, at least the spirit behind the experience that they have gone through."






***  Singapore has been clear and consistent that Malaysia lost its right to review water price in 1987: Ministry of Foreign Affairs
The Straits Times, 1 Aug 2018

Singapore has been clear and consistent in its position that Malaysia lost its right to review the price of water under the 1962 Water Agreement in 1987, Singapore's Ministry of Foreign Affairs (MFA) said yesterday.

The statement, on the second and final day of Malaysian Foreign Minister Saifuddin Abdullah's introductory visit, comes as Malaysia's national news agency Bernama cited the minister as saying in an interview that "the agreement says the content of the agreement can be reviewed after 25 years".

"It doesn't mean at 25 years... so we can continue talking," Bernama reported Datuk Saifuddin as saying in the Monday interview.



The MFA said Singapore's position was most recently set out in Foreign Minister Vivian Balakrishnan's remarks in Parliament on July 9.

Dr Balakrishnan had told the House that Malaysian leaders had previously acknowledged that they chose not to ask for a review in 1987 because they benefited from the pricing arrangement under the agreement: Johor buys treated water from Singapore at 50 Malaysian sen per 1,000 gallons, which is a fraction of the true cost of treating the water.

Dr Balakrishnan had added that in 2002, then Prime Minister Mahathir Mohamad said Malaysia did not ask for a review when it was due as it knew that any revision would also affect the price of treated water sold by Singapore to Malaysia.

The issue of water was among the issues discussed during the visit of Mr Saifuddin, who called on President Halimah Yacob and Prime Minister Lee Hsien Loong on Monday, and on Deputy Prime Minister and Coordinating Minister for National Security Teo Chee Hean yesterday.

Mr Saifuddin also had a meeting with Dr Balakrishnan on Monday, followed by lunch.

"During the visit, both sides reaffirmed our commitment to work closely together to build on our strong bilateral relations for mutual benefit," the MFA said.

"Discussions covered a range of regional developments and bilateral issues, including the KL-Singapore High Speed Rail (HSR) and the 1962 Water Agreement," it added.

"Singapore's leaders emphasised the importance of abiding strictly by the agreements and contracts related to these matters, while exploring potential new areas of collaboration," the MFA said.

Tun Dr Mahathir, who became Malaysian Prime Minister again in May, has sought to defer the HSR project and renegotiate the water pact, both of which are legally binding agreements.



In his interview with Bernama, Mr Saifuddin said bilateral relations are at a very good level, and both governments saw the HSR project and the water agreement as issues that need to be tackled, but that should not be obstacles to maintaining good relations.

Mr Saifuddin added: "I tried my level best to explain the situation. We are looking at the big picture. As far as our bilateral relations (are concerned)... our ties are strong and we want to work hard to take them to greater heights."

He also said he had informed the Singapore leaders that on July 23, Economic Affairs Minister Azmin Ali had written to his Singapore counterpart, saying he will be travelling to Singapore to discuss the HSR project. "It will take place very soon," said Mr Saifuddin, adding that Datuk Seri Azmin had "stated the fact that we want to sit down and discuss".

On the 1962 water pact, Mr Saifuddin said there were discussions in the past, but there had been no progress then.

"Surely we can continue the discussion," he told Bernama.














 





Related
Singapore-Malaysia water agreements

MFA Spokesperson's Comments in Response to Media Queries on Malaysia's Prime Minister Dr Mahathir Mohamad's Comments to Bloomberg dated 25 June 2018 with respect to the 1962 Water Agreement -25 Jun 2018



Singapore-Malaysia Water Agreement a Matter of International Law - K Shanmugam

Keeping Singapore's taps flowing in the quest for a robust water supply

Kuala Lumpur-Singapore High Speed Rail postponed, not scrapped, says Mahathir two weeks after axing project





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