COMMENTS BY MFA SPOKESMAN (In response to media queries on recent press reports:)

COMMENTS BY MFA SPOKESMAN

In response to media queries on recent press reports:

(That the current water agreements were inequitable because the British had favoured Singapore over Johor):

"This is without basis in fact.

The Tebrau and Scudai Rivers Water Agreement and the Johor River Water Agreement were signed by the Johor state government and the City Council of the State of Singapore in 1961 and 1962 respectively. By then, Malaya was already an independent and sovereign nation. Singapore had achieved self-government. How could the British play any role in an independent and sovereign Malaya? Would the federal government of an independent and sovereign Malaya allow the Johor state government to sign any agreement that was against Malaya's national interest?

There have been some views expressed claiming that Singapore was profiteering by buying water at a cheap price and selling it at a much higher price. This is a misrepresentation of facts. Singapore buys raw water from Johor at 3 sen per thousand gallons. It costs Singapore RM2.40 to treat a thousand gallons of water. But Singapore sells the treated water to Johor at only 50 sen per thousand gallons. Singapore is therefore absorbing the cost of treated water sold to Johor to the amount of RM1.90 per thousand gallons. Johor in turn sells the treated water it has purchased from Singapore to its consumers at RM3.95 per thousand gallons.

Under the terms of the two water agreements, the rates for raw water purchased by Singapore (at 3 sen per 1,000 gallons) and treated water purchased by Johor (at 50 sen per 1,000 gallons) were subject to a review after 25 years from the date of the Agreements (ie. 1986 and 1987), taking into account changes in the purchasing power of money and cost of labour, power and materials for the purpose of supplying the water. The Johor state government has chosen not to review the price of water sold to Singapore. Instead, Johor currently purchases 37 million gallons per day (mgd) of treated water from Singapore, well above the 17 mgd of treated water which Singapore is obliged to sell Johor under the current water agreements."
(Efforts taken by Singapore to move forward negotiations on the package):

"Singapore has written several times to Malaysia to settle the issues in the package, including water as well as other issues. In the ongoing discussions on the package, both sides have stated the price they expect for water. Singapore last wrote on 10 December 2001. In that letter, Singapore had sought clarification on a number of issues raised by Malaysia including the location of its rail station. (Malaysia had indicated that it might want to end its rail service in Johor.) Singapore had also sought clarification on additional KTM lands which Malaysia wanted to include in the package if they ended the service in Johor. Singapore had requested Malaysia to set out its position on these and other issues so that there would be a clear framework for both sides, led by the two Foreign Ministers, to meet on the details. Singapore is still awaiting a reply."

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MINISTRY OF FOREIGN AFFAIRS
27 JANUARY 2002