Indonesian Political, Business & Finance News

Malaysia says water for Singapore until 2161 if price is right

| Source: AFP

Malaysia says water for Singapore until 2161 if price is right

Agence France-Presse
Kuala Lumpur

Malaysia is willing to supply water to Singapore for another
100 years after the current pact expires 2061, but the city-state
must be open to paying a higher price, a minister said Friday.

Foreign Minister Syed Hamid Albar said he was optimistic of
progress in talks with his Singaporean counterpart S.Jayakumar in
Kuala Lumpur from July 1-2 to iron out outstanding bilateral
issues.

"We are willing to supply them water for another 100 years at
the end of 2061," he told reporters.

"I think that if we can clinch a deal on water, then all other
things will follow. There will be no problem because water is the
core and fundamental thing.

"Malaysia does not want to continue to be shackled or haunted
by the water problem. If Singapore has an open attitude and wants
to reach a consensus, then we can move forward in our
relationship without looking back."

Singapore obtains half of its daily water needs from
Malaysia's neighboring Johor state at three sen (less than 1 U.S.
cent) per 1,000 gallons. Its two water agreements with Malaysia
expire in 2011 and 2061.

Malaysia has accused Singapore of profiteering from cheap
water supplied by the state of Johor under agreements dating back
to the early 1960s and is demanding a higher price.

Prime Minister Mahathir Mohamad reiterated Thursday it was
"ridiculous" to sell water to Singapore at three sen when Hong
Kong buys water from mainland China at eight ringgit ($2.10) per
1,000 gallons.

Syed Hamid said Friday that Malaysia's asking price would
reflect market value and would not be arbitrary.

"We are not unreasonable. We guarantee Singapore that we will
supply the water but it must be at a price that is competitive
and that reflects the market," he said.

"It is not a price that is going to be plucked from the sky...
it is going to be a justified price and it's up to Singapore to
decide if they are willing to accept it."

Water has been a thorny issue between the two countries since
Singapore was kicked out of the Malaysian Federation in 1965 and
rose to become one of Asia's wealthiest nations.

Apart from water, other irritants include a proposed bridge
linking the countries, the use of Malaysian airspace by
Singaporean aircraft and the future of Malaysian-owned railways
and real estate in Singapore which are part of broad negotiations
that have been going on for years.

In the latest bilateral tiff, Kuala Lumpur has protested a
land reclamation project by Singapore along their narrow maritime
border which it said would affect shipping lanes to Malaysian
ports.

View JSON | Print