Water prices may be discussed during PM’s Singapore visit, Parliament told


Looi Sue-Chern

On Malaysia's efforts to renegotiate water prices with Singapore, Deputy Foreign Minister Marzuki Yahya says 'we are not going to give in'. – The Malaysian Insight file pic, October 31, 2018.

WATER prices may be one of the issues discussed when Prime Minister Dr Mahathir Mohamad goes to Singapore on November 12, said the deputy foreign minister.

Marzuki Yahya told the Dewan Rakyat today that Malaysia remains committed to renegotiating the prices with its southern neighbour.

“We are not going to give in. On November 12, the prime minister will go to Singapore. Water prices may be discussed.

“We are sure that with the cooperation of all MPs, we can strengthen our argument for appropriate prices.”

He was replying to Mohd Shahar Abdullah (BN-Paya Besar), who wanted to know the government’s position and its efforts to renegotiate water prices with Singapore, in line with provisions in the 1961 and 1962 Water Agreements, which state that Malaysia has the right to review the prices after 25 years.

Singapore draws 250 million gallons of raw water from the Johor River daily, at 3 sen per 1,000 gallons. In return, Johor is entitled to receive up to five million gallons of treated water, or 2% of the water supplied to Singapore, at 50 sen per 1,000 gallons.

Singapore previously said the price was heavily subsidised, and below the cost of treating the water.

Shahar said Singapore’s Parliament has claimed that Malaysia profits by some RM46 million from the deal.

“But, we stand to lose RM1.8 billion if we sell water at 3 sen for another 43 years.”

The current agreement expires in 2061, but since returning to helm the federal government, Dr Mahathir has criticised the 1962 deal as “too costly” and “ridiculous”, and said Malaysia will renegotiate the terms with Singapore.

In August, the prime minister said he wants to increase the price of raw water sold to Singapore tenfold, to reflect the higher cost of living.

Marzuki took a supplementary question by Hassan Abdul Karim (PH-Pasir Gudang), who asked how bad the situation is with Singapore.

The Johor MP said the general perception in the south is that the water deal is “sacred”, and Singapore is willing to go to war to safeguard its water supply.

“Is there any truth to this? Because Pasir Gudang is close to Singapore. We share the shallow Tebrau Strait.”

Marzuki said bilateral ties with Singapore are “very good”, and disputes are settled via diplomacy.

“If we cannot settle, we can take the issues to the Court of Arbitration.

“The perception (Hassan mentioned) is untrue. Perhaps, there are parties trying to stir things up.” – October 31, 2018.


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