M’sia not in talks with S’pore regarding water issue: DPM Teo

SINGAPORE — The Republic is not in any talks with its Malaysian counterpart regarding renegotiations of water prices, said Deputy Prime Minister Teo Chee Hean on Tuesday (Aug 28).

He was speaking to the media during a tour of the Changi Water Reclamation Plant. Asked whether Malaysia has approached Singapore officially regarding the water issue, and whether Singapore is in talks with Malaysia, Mr Teo's reply was "no". He did not elaborate.

Mr Teo's comments on Tuesday came amid suggestions made by Malaysia's prime minister Mahathir Mohamad that his country is selling water to Singapore at too low a price.

Dr Mahathir suggested on Aug 13 that water prices to Singapore should be raised by at least 10 times, doubling down on his earlier comments in June that water is among issues with Singapore "that we need to settle".

After Dr Mahathir's comments in June, Malaysian foreign minister Saifuddin Abdullah said there was still scope for a review of the water deal between Singapore and Malaysia.

Singapore has stood firm that both countries have to adhere to the agreed terms relating to water prices. Commenting on the issue for the first time at the National Day Rally, Prime Minister Lee Hsien Loong said that while Singapore appreciates the new Malaysia government's reasons to review and change various policies of the previous administration, the 1962 Water Agreement between the two neighbours is "sacrosanct".

"We must proceed strictly in accordance with its terms," he said.

BACKGROUND:

Under the 1962 Water Agreement, Singapore's national water agency PUB may draw 250 million gallons of raw water from the Johor River daily at 3 sen (S$0.01) 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 has said that the cost of treatment is in fact RM 2.40 per 1,000 gallons while Malaysia sells the treated water to Johor citizens at RM3.95 per 1,000 gallons.

RECENT TIMELINE OF COMMENTS:

• In June, Dr Mahathir said that the 1962 agreement was "too costly" and "manifestly ridiculous".

• Singapore then responded by saying the 1962 agreement is "a fundamental agreement that was guaranteed by both governments in the 1965 Separation Agreement which was registered with the United Nations".

• In July, Foreign Affairs Minister Vivian Balakrishnan told Parliament that Singapore will "fully honour" the terms of the 1962 agreement and expects Malaysia to do so.

• Three weeks after Dr Balakrishnan spoke in Parliament, Mr Saifuddin said there is still scope for a review of the water deal between Singapore and Malaysia.

• In his National Day Rally speech on Aug 19, PM Lee stressed that the agreement was "sacrosanct". He also noted that Dr Mahathir's comments on reviewing water prices are "not new", since he had raised it multiple times during his first stint as premier from 1981 to 2003.