MALAYSIA will seek international arbitration to resolve its dispute with Singapore on the price of water if the city-state refuses to renegotiate the rates, said Foreign Affairs Minister Saifuddin Abdullah.

“We would have to take the matter for international arbitration if they don’t want to negotiate,” Saifuddin told Parliament today.

Saifuddin was responding to a supplementary question from Siti Zailah Mohd Yusoff (Rantau Panjang-PAS) on the next plan of action in the water dispute between Malaysia and Singapore.

“The talks began after Prime Minister Dr Mahathir Mohamad visited Singapore last November and informed them of Malaysia’s intentions,” he said in response to Wan Junaidi Tuanku Jaafar (Santubong-GPS) on the status of negotiations between the two countries.

“After both sides agreed to the discussions, the attorneys-general from both countries began discussing the matter followed by my ministry.

“We should be in the second stage of discussions, which is to look at the different price models and the length of time for the pricing,” the Indera Mahkota MP said.

However, Saifuddin said he was surprised by Singapore Foreign Minister Dr Vivian Balakrishnan’s recent criticism of Malaysia’s plan to review the water rates.

Singapore said the price of water cannot be renegotiated as Malaysia forfeited the right to do so at the 25-year mark of the agreement in 1987. A price review was broached during bilateral talks held between 1998 and 2003 but did not result in a new price.

“He alleged that Malaysia is not adhering to the agreement as we cannot review the rates after 1987,” Saifuddin told Parliament today.

“Clause 14 of the 1962 Water Agreement says ‘it shall be subject to review after expiry of 25 years of this agreement’.

“The agreement doesn’t state that the review can only take place ‘at’ the expiry of 25 years.”

Meanwhile, Saifuddin said Johor has to undertake steps to ensure its zero-dependency on treated water from Singapore.

“To date, Malaysia has subsidised around RM42 million per year or RM2.4 billion till now.”

Under the current water agreement, Singapore pays 3 sen for 1,000 gallons of raw water from Malaysia. The republic treats the water and then sells it back to Johor at 50 sen per 1,000 gallons. Singapore is estimated to draw 250 million gallons from Sungai Johor daily.

Last week, Singapore said there may be “some joint announcements” in the next two weeks following “reasonable progress” in talks over the maritime dispute. – March 12, 2019.