Thursday 11 April 2019

9th Singapore-Malaysia Leaders' Retreat on 9 April 2019

Prime Minister Lee Hsien Loong, Mahathir affirm commitment to cooperative and forward-looking bilateral relationship
Singapore and KL to begin maritime boundary talks within a month
By Royston Sim, Deputy News Editor (Politics) In Putrajaya, The Straits Times, 10 Apr 2019

Singapore and Malaysia will begin negotiations to delimit their maritime boundaries in a month, as both countries have taken steps to de-escalate tensions at sea.

This measure was one of several that Prime Minister Lee Hsien Loong and his Malaysian counterpart Mahathir Mohamad welcomed at their Leaders' Retreat yesterday, the first under the Pakatan Harapan government.

Speaking at a joint news conference, PM Lee said he and Tun Dr Mahathir affirmed their commitment to a cooperative and forward-looking bilateral relationship.

"The relationship between our two countries is rooted in our long history, and strong family and business ties," he said. "This remains unchanged even with the new Malaysian government."

The leaders also discussed current bilateral issues, including airspace and maritime boundaries.

Dr Mahathir said: "We agreed that the fundamental principle is to resolve issues of concern in a friendly and constructive manner."

Both PMs welcomed the progress made in implementing recommendations to resolve the maritime dispute. Dr Mahathir said: "As the saying goes, good fences make good neighbours. We will now proceed to maritime boundary delimitation in the area."

Ultimately, Malaysia believes it is important to delimit all outstanding maritime boundaries between Malaysia and Singapore, he added.



Malaysia and Singapore had mutually suspended the extension of their overlapping port limits on Monday, reverting to what was in place before Oct 25 and Dec 6 last year, respectively.

Earlier yesterday, a Singapore Foreign Ministry spokesman said there were no Malaysian government vessels anchored in the area previously covered by overlapping port limits as of midnight. "We will continue to exercise sovereignty and take appropriate enforcement actions in the area," he said.

Dr Mahathir also said at the news conference that Malaysia wants to take back control, in stages, of its airspace over southern Johor that has been delegated to Singapore.

PM Lee said Singapore is willing to discuss this matter with Malaysia, and stressed the key considerations include the safety and efficiency of air traffic operations.

On water, Dr Mahathir said resolving the issue of the price of water sold to Singapore under the 1962 Water Agreement is a priority.

Singapore, on its part, is concerned about pollution of the Johor River as well as its long-term yield, PM Lee said.



Beyond these bilateral issues, the broader Singapore-Malaysia relationship continues to grow, PM Lee said. For instance, the Joint Ministerial Committee on Iskandar Malaysia is working to further cooperation on multiple fronts.

PM Lee also invited Dr Mahathir and his wife Siti Hasmah Mohamad Ali to this year's Bicentennial National Day Parade at the Padang on Aug 9. Dr Mahathir said he was glad to accept the invitation.

Then Malaysian Deputy Prime Minister Abdul Razak and his wife had attended the National Day celebrations in 1969, on the 150th anniversary of modern Singapore's founding.

Asked if the recent maritime and airspace disputes will have lasting damage to bilateral ties, PM Lee said: "If it is managed well, then it can be productive for both countries and the overall relationship can prosper. If it is not managed well, it can cause a lot of trouble and poison the overall relationship."

PM Lee said he wrote a letter to Dr Mahathir in December as he was worried that things were not going in the right direction. He asked Deputy Prime Minister Teo Chee Hean and Finance Minister Heng Swee Keat to deliver it in person and explain his concerns to Dr Mahathir.

PM Lee said he is very happy that Dr Mahathir took in what they said and took action, which enabled ministers from both sides to meet and turn things around gradually.



In a Facebook post last night, PM Lee said issues will crop up from time to time between close neighbours bound by history and kinship.

"When this happens, we need to keep channels of communication open, build trust, and tackle the issues pragmatically and with an eye to both sides' concerns. Then we can move beyond solving problems to cooperating for mutual benefit," he said.




















Singapore raises concerns over supply of water from Johor River
Pollution of river and its long-term sustainable yield among worries
By Royston Sim,  Deputy News Editor (Politics) In Putrajaya, The Straits Times, 10 Apr 2019

Singapore has raised its concerns to Malaysia over pollution of the Johor River as well as its long-term yield, Prime Minister Lee Hsien Loong said yesterday.

It is in both countries' interests to work together to ensure a sustainable water supply, he added.

PM Lee was speaking at a news conference with his Malaysian counterpart Mahathir Mohamad at Perdana Putra after they met and discussed various matters, including water, at the Leaders' Retreat.



He noted that national water agency PUB's waterworks at Kota Tinggi, Johor, had to shut down last week because of high ammonia levels. A reservoir at a bio-composite centre next to a palm oil refinery in Sedenak had burst, causing ammonia-contaminated water to flow into the Sayong River - one of the creeks that supply raw water to the Johor River.

Singapore's water supply was not affected, but the incident disrupted water supply to about 17,000 households in Kulai.

Last month, the illegal dumping of chemical substances into Sungai Kim Kim in Pasir Gudang gave rise to toxic fumes that affected thousands of residents.

"If the Johor River suffers an incident like that which happened at Sungai Kim Kim recently, I think it will be disastrous for both countries," said PM Lee.



The other concern Singapore has is the long-term sustainable yield of the Johor River, he said, noting that Johor has built water plants on the river, upstream of PUB's waterworks at Kota Tinggi.

The combined amount these plants draw may well exceed the river's sustainable yield, he said, highlighting the need to study how to meet both Johor's and Singapore's water requirements for the remainder of the 1962 Water Agreement.

Under the agreement, Singapore can draw up to 250 million gallons a day (mgd) of raw water from Johor at a price of three sen per 1,000 gallons. It is obliged to supply 5 mgd of treated water to Johor, but has been supplying more at Johor's request.



In an interview with Singapore media to wrap up his visit yesterday, PM Lee reiterated that both countries have to work together to ensure the Johor River can provide sufficient water for both sides.

"It is a serious problem. It is an issue that we have to work at together because if there is not enough water in the Johor River, it is not only a practical problem for both sides, it is also a political problem for both sides," he said.

"The Malaysians understand this, and they have recognised that this is something which they need to act on together with us, and we look forward to working with them on that."

He noted that some steps have been taken which have made a big difference, citing the Linggiu Dam which was built to increase the yield of the Johor River so Singapore can reliably get its full entitlement of 250 mgd daily. The agreement to build the dam was signed in 1990, during Tun Dr Mahathir's first term as prime minister.

PM Lee added that Malaysia had agreed to build a barrage at Kota Tinggi a few years ago to prevent seawater from intruding upstream and affecting Singapore's waterworks.

"That has helped, but it is not enough because Johor continues to develop, their population grows, their economy grows. They want more water, and we can see the difficulties coming in future and therefore we have to work at it again, which we will," he said.



During the news conference, Dr Mahathir said resolving the longstanding issue of water price review is a priority for Malaysia. Since returning to power last May, he has regularly called for the water price to be raised.

Dr Mahathir said both leaders have agreed to find amicable solutions on this issue, including the possibility of dispute resolution through arbitration on a mutually agreed basis.

PM Lee said both leaders agreed that their respective attorneys-general should continue their dialogue and understand each other's perspectives and concerns. The foreign ministers from both countries will oversee this issue.





















1962 Water Agreement sacrosanct, changing it a very high hurdle: PM Lee Hsien Loong
By Linette Lai, Political Correspondent, The Straits Times, 10 Apr 2019

The 1962 Water Agreement is a "fundamental founding document" for Singapore and Malaysia, and both countries have to abide by it, Prime Minister Lee Hsien Loong said yesterday.

"It is a basic term on which the two countries decided to manage our relationships," he said at a joint news conference with Malaysian Prime Minister Mahathir Mohamad.

"If you look at it from that point of view, to be able to change that is a very high hurdle."



PM Lee was responding to a question from a Malaysian journalist on whether Singapore believes that Malaysia's desire to review the price of water under the 1962 Water Agreement is reasonable, and what he thought was a reasonable price.

PM Lee said he told Tun Dr Mahathir that he can understand his perspective on the political necessity for Malaysia to press hard for a revision of the price of water.

He also explained the Republic's point of view. The 1962 Agreement was guaranteed by both governments in the 1965 Separation Agreement, PM Lee noted.

"I can understand Dr Mahathir's perspective," he said. "I hope that he will be able to see Singapore's perspective, why this is such a sacrosanct item. Therefore, let us try to find a way forward which enables us to talk constructively about this issue, and hopefully be able to make some progress."

PM Lee added that one of the issues to be discussed by both sides is the security of Singapore's water supply from Johor, given the concerns over pollution in the Johor River and its long-term yield, to make sure Singapore is able to get the 250 million gallons a day (mgd) specified under the 1962 Water Agreement.

"So on that basis, the ministers will talk. I think to ask me what is a reasonable water price now is to prejudge the question," he said.



Under the agreement, Singapore is entitled to draw 250 mgd of raw water from Johor at three sen per 1,000 gallons. However, Johor is also entitled to buy 5 mgd of treated water from Singapore at 50 sen per 1,000 gallons, a sum the Republic says is heavily subsidised and a fraction of the true cost of treatment. In practice, Singapore has been supplying 16 mgd of treated water at Johor's request at this price.

Malaysia's position is that a review can take place any time after 25 years since the agreement began, while Singapore has been clear and consistent in its position that Malaysia had lost the right to review the water price when it opted not to do so in 1987.

In a joint statement issued after the news conference, both prime ministers noted their countries' interest "to identify appropriate and timely measures, including schemes, to increase the yield of the Johor River, and to safeguard its environmental conditions and water quality", to the extent required by the 1962 Agreement.

The leaders also noted the differing positions of both sides on the right to review the price of water under the 1962 Agreement, and have agreed for their attorneys-general to discuss these differing positions.

"Both sides will seek amicable solutions, including the possibility of dispute resolution through arbitration on a mutually agreed basis," they said.















Malaysia wants to take back control of its airspace in stages
PM Lee says Singapore ready to discuss matter; the key considerations are safety and efficiency
By Royston Sim, Deputy News Editor (Politics) In Putrajaya, The Straits Times, 10 Apr 2019

Malaysia wants to take back in stages control of its airspace over southern Johor that has been delegated to Singapore, Malaysian Prime Minister Mahathir Mohamad said yesterday.

It aims to do so beginning from the end of this year to 2023, he added.

Speaking to reporters at a news conference with Prime Minister Lee Hsien Loong after their Leaders' Retreat at his office complex, Tun Dr Mahathir noted that the high-level committee formed to review the airspace arrangement between both countries has begun discussions.

Referring to the letter of agreement inked by both countries in 1974 on this arrangement, Dr Mahathir said it was signed at a time when the Kuala Lumpur Flight Information Region (FIR) was in its infancy and air navigation facilities in Malaysia were not adequate.

The International Civil Aviation Organisation (ICAO) had at the time recommended that air traffic services in the area concerned be delegated to Singapore, he noted.



"We have made significant investments in preparation to take back the said delegated airspace and hope that this can be done expeditiously," Dr Mahathir said.

Singapore is ready to discuss this matter with Malaysia, PM Lee said at the news conference.

"The key considerations are the safety and efficiency of air traffic operations, and the needs and interests of both countries," he added.

"I told Dr Mahathir this is a complex matter that will involve consulting many stakeholders, including airlines and ICAO, and cannot be rushed," PM Lee said.

He noted that civil aviation is growing rapidly for both countries, and the Kuala Lumpur International Airport (KLIA) and Changi Airport are now major regional airports. KLIA has greater capacity to grow than Changi, he said. "Because Changi is building a third runway and I think that is the limit, whereas KLIA already has three runways and has space to build five."

It is therefore in both countries' interests that this growth be facilitated and take place safely, PM Lee said.



In an interview with Singapore media yesterday afternoon to wrap up his visit to Malaysia for the Leaders' Retreat, PM Lee said there is opportunity for both countries to cooperate, pointing to how the expansion of civil aviation and passenger traffic in Asean has been of tremendous benefit to the whole region.

"So, you need to work together in order to realise that and unless we can provide a system which is safe, efficient and which will meet the needs of the commercial operators, I think all sides will be losers."

Asked what implications the review would have for Singapore, PM Lee noted that Malaysia's airspace over southern Johor was delegated to Singapore in 1974 after an ICAO meeting the year before.

Singapore will talk to Malaysia and see what adjustments are possible, PM Lee said.

"I think it is not reasonable for us to say we will not talk or we will not listen to your concerns. We have to do that," he said.

"Ministers on both sides understand the parameters, and it has to be done with a view to safety and efficiency of civil aviation - that is a key objective," he added, noting that the talks "will take some time".

Both governments had also taken steps to resolve the dispute over landing procedures at Seletar Airport ahead of the retreat.



On Monday, Transport Minister Khaw Boon Wan said that the civil aviation authorities of both countries are developing Global Positioning System (GPS)-based instrument approach procedures for Seletar. The new procedures will replace the Instrument Landing System (ILS) procedure that Singapore has withdrawn.

PM Lee noted: "We have unwound the impasse. But the desire to have an instrument system for Seletar is a reasonable one, and if not by the ILS, you can use the GPS system, which also enables you to land with instrument and not only in good weather using our eyeballs."

Malaysia, meanwhile, has indefinitely suspended its permanent restricted area over Pasir Gudang.

The agreement paves the way for Malaysian carrier Firefly to begin flying into Seletar on April 21, more than four months after its flights to Singapore were suspended.



In a Facebook post last night, Foreign Minister Vivian Balakrishnan said he is glad that Firefly will now be able to fly to Seletar, and that Malaysian Transport Minister Anthony Loke has said he will be on the first flight.

"There are still many complex airspace issues that the transport authorities will have to discuss in the months and years ahead," Dr Balakrishnan added.
























Malaysia looking at affordable alternatives to RTS Link Project
By Trinna Leong, Malaysia Correspondent in Putrajaya, The Straits Times, 10 Apr 2019

Malaysia has proposed, and Singapore has agreed to consider, suspending the Johor Baru-Singapore Rapid Transit System (RTS) Link Project for six months from April 1 this year, in a manner similar to that for the Kuala Lumpur-Singapore High-Speed Rail (HSR) Project.

Malaysian Prime Minister Mahathir Mohamad and Singapore Prime Minister Lee Hsien Loong have also instructed their officials to further deliberate on the matter and to finalise the terms of the suspension, both leaders announced in a joint statement after their retreat yesterday.

Tun Dr Mahathir said at a news conference alongside PM Lee that Malaysia will be looking at "affordable and sustainable alternatives to the RTS Link Project".



A bilateral agreement to build the 4km cross-border link - which would connect Woodlands North station on Singapore's Thomson-East Coast MRT Line to Bukit Chagar in Johor Baru - was signed in January last year, with trains to start running by Dec 31, 2024.

However, the new Malaysian administration which took power last May has sought more time to study the project's cost, among others. "Singapore is willing to consider suspension of the project," Dr Mahathir said.

PM Lee said Singapore understands Malaysia's position. "We have tasked our attorneys-general to work out the supplemental agreement quickly to give effect to the suspension, similar to what we did for the HSR suspension last year."

Malaysia had previously requested for the Kuala Lumpur-Singapore HSR Project to be deferred due to cost constraints. Last September, both neighbours agreed to the deferment until May 2020, and Malaysia has reimbursed Singapore $15 million for abortive costs incurred by the delay.

Both leaders yesterday noted that Malaysia is exploring a possible way forward with the aim of cost reduction.

Malaysia's Pakatan Harapan government has been looking to cut its expenditure down by either delaying or cancelling mega projects brokered by the previous Barisan Nasional government, citing national debt having surpassed RM1 trillion (S$330.6 billion). Both leaders also stressed their commitment to address traffic woes at their land checkpoints.

Dr Mahathir noted that traffic congestion on the Causeway and Second Link remains a major problem for commuters. "Currently, about 250,000 to 300,000 people are crossing the Causeway on a daily basis," Dr Mahathir said.

"Resolving congestion is a priority for Malaysia. Both sides are committed to addressing this issue, and we will continue to explore new initiatives to tackle this problem," he added. "This may include improvements in physical infrastructure, review of inter-boundary policies and regulations and improvements in the quality of cross-border services, the CIQ," he said, referring to the Customs, Immigration and Quarantine facilities.

PM Lee said: "Dr Mahathir pointed out that the RTS Link will not solve the problem of motorcyclists who come into Singapore. I said, yes we have to expand the capacity of the CIQs on both sides to process the people who are crossing because the numbers will grow.

"Singapore has plans to expand our CIQ further and these are things which will take some time, but they will eventually make a significant dent in the problem."
















Vast potential for Malaysia, Singapore to move ahead together: PM Lee
Both have much in common and can do more in a cooperative, mutually beneficial way, he says.
By Royston Sim, Deputy News Editor (Politics) In Putrajaya, The Straits Times, 10 Apr 2019

They may be close neighbours, but Singapore and Malaysia have evolved in different directions over the years, especially after 1965.

Yet they still have much in common, when seen within the Asean or global context, Prime Minister Lee Hsien Loong said yesterday at a news conference with his host, Malaysian Prime Minister Mahathir Mohamad.

"Singapore and Malaysia are very similar countries in terms of heritage, in terms of our rule of law, in terms of the connections we have with one another, and the comfort we have with one another," said PM Lee.

"We even argue who invented some of our foods first. So, there is an enormous overlap."

There is therefore tremendous potential for both countries to move ahead in a cooperative and mutually beneficial way, he added.

"Provided we work at the relationship and understand where you get the best satay, whether it is the Esplanade, Gardens by the Bay or whether you can get it at Satay Majid or Satay Kajang," he said, referring to popular satay haunts in Singapore and Kuala Lumpur.

The one-day Leaders' Retreat, an annual affair, was the first under the Pakatan Harapan government.

But it followed more than 50 ministerial-level visits and exchanges between both countries since the coalition led by Tun Dr Mahathir won the May 9 general election last year - and the familiarity was visible when ministers from both sides met yesterday. PM Lee was among the first leaders to visit Dr Mahathir last May, and Dr Mahathir visited Singapore in November ahead of the Asean Summit.

Yesterday, Dr Mahathir accepted PM Lee's invitation to him and his wife to visit the Republic for its Bicentennial National Day Parade on Aug 9.



Responding to a question on how he saw ties with Singapore developing further, Dr Mahathir said ties "have always been good, at least we are always on talking terms".

He added: "If we have problems, we air our problems, sometimes publicly, sometimes privately. What we have not done is that we have not confronted each other, or even suggested that we should resolve our problem through violent action like going to war with Singapore."

This is not a minor achievement, he said, pointing to how throughout the world, most countries that have problems with their neighbours try to solve the problems through violence and through wars. "In the end, both sides will lose."

He said: "That is our relation with Singapore. It is a relation between, I think, two civilised people who do not believe in violence."



Both leaders had a four-eyes meeting yesterday morning, followed by a second meeting with their respective delegations.

Dr Mahathir and his wife Siti Hasmah Mohamad Ali then hosted a luncheon for the Singapore delegation at Seri Perdana, the Prime Minister's official residence.

In a joint statement issued after their retreat, both PMs said the historical and cultural links are the foundation for stronger relations.

They also looked forward to Singapore hosting the 10th Leaders' Retreat next year.




















Bill on online falsehoods a significant step to tackle serious issue: PM Lee
By Linette Lai, Political Correspondent, The Straits Times, 10 Apr 2019

Prime Minister Lee Hsien Loong has described the proposed law to fight online falsehoods as a significant step to tackle a serious problem that confronts many countries.

He also said that Singapore will continue to take an approach that works for it, in reply to a question from a Malaysiakini reporter at a joint news conference at the Leaders' Retreat in Putrajaya.

On Monday, global media watchdog Reporters Without Borders had criticised the proposed Protection from Online Falsehoods and Manipulation Act (POFMA), calling the Government's approach to fake news "completely inappropriate".



Asked about concerns over the draft law, PM Lee said: "I am not surprised that Reporters Without Borders criticised it. They criticise many things about Singapore's media management, but what we have done has worked for Singapore, and it is our objective to continue to do things which will work for Singapore. POFMA will be a significant step forward in this regard."

PM Lee pointed out that Singapore is not the only country looking at legislation on the issue. "The problem of fake news, of deliberate false statements being proliferated online, is a serious problem which confronts many countries," he said, noting that France and Germany have passed laws to combat it, and Britain is considering doing so.

"Singapore has had to do it, and we have had a long process of the Select Committee publishing a report. We have deliberated on this for almost two years now," he added.

"Finally, we have got this Bill. It is going to be debated in the House and I hope eventually, it will become legislation."



Malaysia was among the first few countries to introduce an anti-fake news law under the previous Barisan Nasional coalition. But the new Pakatan Harapan government, led by Prime Minister Mahathir Mohamad, has pledged to repeal the law, though this has been blocked by the opposition.

"This is what the people want, and we respect the people who actually voted us into power. On the other hand, we know that social media can be abused quite seriously," Tun Dr Mahathir told the news conference. "But when we have a law that prevents people from airing their views, then we are afraid that the government itself may abuse the law, like what has happened in the last government."

"We do not want any government - this one and succeeding ones - to make use of the law in order to tell fake news, (for) the government to create fake news in order to sustain themselves," added Dr Mahathir. "It will be difficult to handle. But we believe that we can accept the challenges and we can handle them."




Related
Singapore and Malaysia dispute over airspace and territorial waters

Singapore-Malaysia maritime and airspace disputes: Officials of both countries to meet in the second week of January 2019

Singapore-Malaysia sea and air disputes: Foreign Minister Vivian Balakrishnan Ministerial Statement in Parliament on 14 January 2019

KL-Singapore High-Speed Rail postponed to May 2020; Malaysia to pay Singapore RM45 million for suspending project

Singapore supplies additional treated water to Malaysia at Johor's request

Mahathir says Singapore's success due to Malaysia supplying it water

Singapore student takes on Mahathir at Oxford Union dialogue session on 18 Jan 2019

Singapore to introduce new law to prevent spread of fake news; the Protection from Online Falsehoods and Manipulation Bill introduced in Parliament on 1 Apr 2019

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