Singapore Maintains Malaysia Has Lost Right to Review Water Price

Singapore's Ministry of Foreign Affairs (MFA) maintains that Malaysia has lost the right to review the price of water under the 1962 Water Agreement (62WA). However, Malaysia says that the prime ministers of both countries had agreed in November 2018 to begin talks over the water agreement. It expires in 2061 and entitles Singapore to draw up to 250 million gallons of water a day from the Johor River.

The Singapore's Foreign Minister brushed off Malaysia's claims as baseless. A statement by Malaysia's Foreign Ministry said both parties should have already entered the second phase of negotiations. They were to discuss how the new water price would be determined.

Reports say the Malaysian Prime Minister Mahathir Mohamad and Singapore's Prime Minister Lee Hsien Loong, during a meeting on November 12, 2018, expressed their views on the right to review the price of water under the agreement. An official said both leaders expressed their willingness for their respective officials to have further discussions. Then in December, the Attorneys-General of both countries met. However, the limelight fell on other issues over the Johor Bahru Port Limits and the Seletar Instrument Landing System procedures.

The MFA spokesperson said there was no agreement between the two Attorneys-General related to the 62WA. A day ago, Malaysian Foreign Minister Saifuddin Abdullah said they will seek international arbitration if Singapore is not ready to renegotiate. Singapore maintains that its always prepared to settle disputes on terms mutually agreed by both parties.