MFA Press Release: Transcript of Minister for Foreign Affairs George Yeo's replies to the Parliamentary Question and Supplementary Questions, 18 October 2010

TRANSCRIPT OF MINISTER FOR FOREIGN AFFAIRS GEORGE YEO'S REPLY TO THE PARLIAMENTARY QUESTION, 18 OCTOBER 2010

QUESTION:

MDM HALIMAH YACOB: To ask the Minister for Foreign Affairs (a) if he will give an update on the Memorandum of Understanding between Singapore and Malaysia; (b) what plans are being considered for the historic Tanjong Pagar site and the land along the railway tracks; (c) what are the plans to develop a rapid transit link between Singapore and southern Malaysia to be operational by 2018; and (d) what joint iconic project is being considered and whether such a project will accelerate the rate of investments and joint ventures between Singapore and Iskandar Malaysia.

REPLY:

1 Let me first clarify that the two countries did not sign a Memorandum of Understanding. A Joint Statement was issued after the Prime Ministers of Singapore and Malaysia met at their Retreat on 24 May this year. The Joint Statement reflected their agreement on, among other things, the relocation of the Keretapi Tanah Melayu Berhad railway station from Tanjong Pagar to the Woodlands Train Checkpoint by 1 July 2011 pursuant to the Points of Agreement on Malayan Railway Lands in Singapore, or what we call the POA, signed in 1990, and subject to agreement on the land swap issue.

2 Prime Minister Lee visited Malaysia on 22 June to discuss the land swap with Prime Minister Najib and conveyed Singapore's offer on the land swap. Following the same meeting, Prime Minister Lee sent a revised land swap offer to Prime Minister Najib on 28 June. Prime Minister Najib accepted the offer on 17 September and Prime Minister Lee replied on 19 September confirming his agreement. The Prime Ministers met again in Singapore on 20 September as a follow-up to their earlier meetings, and have agreed on the following:

The Singapore Government shall vest four land parcels in Marina South and two land parcels in Ophir-Rochor in a joint venture company called M-S Private Limited, for joint development when KTMB vacates the Tanjong Pagar Railway Station and relocates the railway station to Woodlands. KTMB will vacate Tanjong Pagar by 1 July next year. M-S Pte Ltd will be 60% held by Khazanah Nasional Berhad of Malaysia and 40% held by Temasek Holdings Private Ltd of Singapore. The Marina South and Ophir-Rochor land parcels are in lieu of the three parcels of land in Tanjong Pagar, Kranji and Woodlands mentioned in the POA and three additional pieces of land in Bukit Timah previously offered by Singapore.

The land swap between the Marina South and Ophir-Rochor land parcels, on the one hand, and the three POA land parcels and three Bukit Timah land parcels, on the other hand, is done on an equivalent value basis using the value of the three POA land parcels and three Bukit Timah land parcels based on their maximum development potential. Development charges therefore have to be paid on the three POA land parcels and the three Bukit Timah land parcels to realise their value based on maximum development potential for the purposes of the land swap. Malaysia agrees that development charges are payable for the three Bukit Timah land parcels but holds a different view from Singapore relating to the development charges payable on the three POA land parcels. Both Leaders have agreed to settle this issue amicably through arbitration under the auspices of the Permanent Court of Arbitration. They have further agreed to accept the arbitration award as final and binding. Both Leaders also agreed that the arbitration will proceed on its own track, and shall not affect the implementation of the POA and the other bilateral initiatives agreed in the Joint Statement of 24 May 2010, which shall continue to be implemented.

3 The details of the relocation of the railway station and other implementation issues are being sorted out by the Joint Implementation Team co-chaired by the Secretary General of Malaysia's Ministry of Foreign Affairs and the Permanent Secretary of Singapore's Ministry of Foreign Affairs. The Joint Implementation Team shall conclude their discussion on the details of the implementation of the 24 May Joint Statement by 31 December this year, by the end of this year.

4 After KTMB relocates its station to Woodlands Train Checkpoint by 1 July next year, the railway station building in Tanjong Pagar will be conserved and will serve as the centrepiece for any future development on the site. It was also agreed that the old Bukit Timah railway station building at Blackmore Drive can be conserved as well. The rest of the land along the railway tracks will be incorporated into the future development plans of the surrounding areas to meet Singapore's development needs.

5 The two Prime Ministers also committed to the joint development of a rapid transit system (RTS) link between Singapore and Tanjung Puteri in Johor Bahru, targeted to be completed by 2018. As this will be a major infrastructure project, both sides are currently discussing the details of implementing the RTS link. This includes looking at factors such as connectivity with both the Singapore and Johor Bahru public transport networks.

6 In addition, to improve the existing connectivity between Malaysia and Singapore, the two Governments agreed to lower toll charges for the Second Link by 30 per cent on both sides, and in fact, the revised toll rates have been implemented with effect from 1 August this year.

7 On the Iskandar Malaysia iconic project, the two Prime Ministers agreed that Khazanah and Temasek will form a 50-50 joint venture company to undertake the development of an iconic wellness township project, which would involve the participation of the private sector of both countries. Both sides are supportive of the "live-work-play" wellness township concept proposed by our Joint Ministerial Committee for Iskandar Malaysia (IM). The proposed iconic project will offer holistic wellness services and facilities in a sizeable development.

8 Mr Speaker Sir, as Members are aware, the IM project is an ambitious initiative that Malaysia has embarked on to catalyse further economic growth. Companies from Japan, South Korea, China, India, and the Middle East have shown interest in the IM. With the proximity of the IM, Singapore companies are also considering opportunities there. From May 06 to May 09, Singapore companies invested some 2.64 billion Malaysian ringgit in Iskandar Malaysia. The joint development of the iconic project will send a strong signal of the Singapore and Malaysian governments' continuing commitment to strengthen bilateral political and economic ties, especially in Iskandar Malaysia.

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TRANSCRIPT OF MINISTER FOR FOREIGN AFFAIRS GEORGE YEO'S REPLIES TO SUPPLEMENTARY QUESTIONS, 18 OCTOBER 2010

SPEAKER: Mdm Halimah.

MDM HALIMAH YACOB (JURONG): I want to thank the Minister for his explanation and I am also glad to hear that the two iconic structures will be preserved, will be conserved. I have a couple of supplementary questions to ask Minister. I would like to ask Minister, in light of these developments, could the Minister give an assessment on the state of relations between Singapore and Malaysia. And the second supplementary question is on the Rapid Transit Link: How far has the discussion proceeded in this and has it been agreed on whether it will be under the water or whether it will be on land? The third question I would like to ask is the issue arising on the development charges: Has that already been referred to the ICJ? So these are the three questions I would like to ask, and I would like to, of course, compliment the Prime Minister and also the Prime Minister of Malaysia for their very brave and very forward-looking way in trying to iron out these issues, and whether now that we have reached this stage, this will pave the way for other issues to be resolved and ironed out as well. Thank you.

MINISTER: Mr Speaker Sir, if I may answer the second and third questions first. The RTS Link will be a major infrastructural project linking the two urban transport systems together. I think both sides are doing detailed studies, and they have to meet to discuss what best would serve our mutual needs in a most cost-effective way. Whether it should be above water or below water, I think all these details have to be discussed and would require proper engineering studies and proper cost analysis. As for the arbitration on development charges, both sides are now assembling their legal teams, and they have not yet met for this purpose, but the Joint Implementation Team, will have to work all this out, and begin the process of resolving these matters. Mdm Halimah is right that with this agreement, bilateral relations are now on a different plane. A chapter which has been kept open for 20 years has finally been closed, enabling us now to look at the future and prospects for future cooperation in a globalised world in a much more positive and constructive way. So I would say this is a milestone in the history of bilateral relations between the two countries. I would say relations now are excellent, and there should be prospects for greater future cooperation, both political and economic.

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