Malaysia and Singapore mull arbitration over water stalemate

The just-concluded Singapore-Malaysia Leaders' Retreat appears to have done little to resolve the ongoing dispute over Malaysia's sale of water to the island state.

As Malaysia continues to press for a review of the water price, Singapore premier Lee Hsien Loong today defended the terms, which includes the water price, stipulated in the “sacrosanct” 1962 Johore River Water Agreement.

“(The agreement was) subsequently guaranteed by the two governments [...] in 1965 in the separation agreement. So it is a fundamental founding document for us.

“(The water price) is a basic term on which the two countries decided to manage the relationship. If you look at it from that point of view, to be able to change that is a very high hurdle.

“[...] So now I can understand (Prime Minister) Dr Mahathir Mohamad's perspective but I also asked (and) hoped he would be able to see Singapore's perspective why this is such a sacrosanct item (to us),” he told a press conference at the Prime Minister’s Office in Putrajaya.

The agreement stipulates that Malaysia sells raw water to Singapore for 3 sen/1000 gallons, and in turn, buys treated water from Singapore for 50 sen/1000 gallons.

Meanwhile, Mahathir said the two nations were considering resolving the issue through arbitration.

“For Malaysia, resolving the longstanding issue of water price is a priority. We were engaged in active negotiations on the review in the late 1990s and early 2000s.

“PM Lee and I have agreed to find amicable solutions on this issue, including the possibility of dispute resolution through arbitration on a mutually agreed basis,” he added.

Moving forward, both governments would continue to discuss the matter.

Earlier, Lee highlighted Singapore’s concerns pertaining to its purchase of water from Johor - whether the water could be prevented from pollution and whether the Johor River was able to meet its long term water requirements.

[More to follow] - Mkini