MFA Spokesman's Comments in response to article

COMMENTS BY MFA SPOKESMAN

1 In response to enquiries from the press regarding the article entitled "Look Elsewhere" published in the 5 June 1999 edition of the Star, the MFA spokesman said that Singapore was surprised that Malaysian officials had chosen to leak details of confidential negotiations still in progress to the Malaysian press in a distorted form. "The Malaysians were the ones who had wanted the discussions to be kept confidential. They seem to have changed their minds", he said.

2 The spokesman said that if the talks had failed to make as much progress as expected, "this is because the Malaysian officials have chosen to disregard agreements reached between Prime Minister Mahathir and Prime Minister Goh Chok Tong during their series of meetings last year. Instead, they have insisted on starting the negotiations from scratch and made many new demands."

3 The MFA spokesman said that Singapore had nevertheless tried to be helpful and taken the approach of offering "maximum benefits for both sides" by trying to accommodate new Malaysian requests on such issues as railway land and CPF.

4 The MFA spokesman dismissed allegations that Singapore was profiteering from selling treated water to Johor. He pointed out that it cost Singapore RM2.40 to treat a thousand gallons of water, which it sold to Johor at RM0.50 per thousand gallons. Johor in turn sells the water at RM3.95 per thousand gallons.

5 The MFA spokesman added, "under the existing water agreements, Singapore is required to sell only 15 mgd to Johor at RM0.50 per thousand gallons. Johor is not obliged to buy any treated water from Singapore. But, in fact, it bought an average of 37 mgd of treated water from Singapore during the period 1993 - 1997. This is evidence that Johor is benefitting from buying water from Singapore."

6 The spokesman also dismissed the suggestion that Singapore's request for 750 mgd of water was excessive. "It is based on projections of our population growth and economic requirements and our estimated per capita water consumption in the year 2061. It is comparable with the current per capita water consumption of many major cities such as Taipei or Bangkok", he said.

7 The spokesman added, "In any case, we have always told Malaysia that our request for water beyond 2061 is contingent on Malaysia satisfying its own water needs first. Singapore has also proposed that part of our long term water requirements could be met by Pahang. This is in case Johor is not in a position to meet all of Singapore's long term water needs."

8 The spokesman concluded by stressing that Singapore would continue to take a constructive approach at the negotiations and looks forward to the next round of which is to be hosted by the Malaysian side in June or August.

9 He added that a letter has been sent to the Star today to place on record these corrections and comments.

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MINISTRY OF FOREIGN AFFAIRS
7 JUNE 2000