Why didn’t Tun M as PM in 1986 & 1987 review water deal with Singapore?

After advancement in diplomatic ties under the BN administration led by then Prime Minister Dato’ Sri Najib bin Tun Abdul Razak prior to GE14 which marked a major shift in approach from the oft testy times under Tun Dr Mahathir Mohammad throughout his 22-year premiership in the 1980s till 2003, it appears that bilateral ties between Malaysia and our closest neighbour down south are headed towards troubled waters (quite literally) again.

As Tun Mahathir has said that Malaysia intends to approach Singapore to renegotiate the terms of the 3-sen per 1,000 gallons of raw water deal, Singapore’s Ministry of Foreign Affairs issued a quick reminder that "Both sides must comply fully with all the provisions of these agreements.”  In an article on its website, MFA further highlighted that the 1961 and 1962 water agreements provided for a price review after 25 years – in 1986 and 1987 respectively but Malaysia chose not to review the price then, said MFA in an article on its website on the issue.

There was ample opportunity for Malaysia to review the water agreement during Tun Mahathir’s tenure in 1986 and 1987, but it is inconceivable as to why he did not. Missing out on the grace period for a review, placed Malaysia at a disadvantage at the drawing board.

Fast forward 11 years later in 1998, with Tun Mahathir still at the helm, the water issue was raised again, but negotiations brought no success.

Although Tun Mahathir is now reviving this issue after 30 years, it does not negate that he did not exercise Malaysia’s right to call for a review.

Nevertheless, MCA believes that since it has been 20 years since Malaysia last raised this issue with our southern neighbours, and considering factors like inflation and cost of living, it is only apt, and makes sense that both Malaysia and Singapore come back to the negotiation table to deliberate on adjusting the rates of raw water sale so that the water deal can be equitable to Malaysia, rather than jarringly lop-sided in favour of Singapore.

Given that the exchange rate whereby SGD1 is usually equated to RM3, and that Singapore’s Ministry of International Trade and Industry reported that “Singapore’s economy grew by 4.3 per cent on a year-on-year basis in the first quarter of 2018, higher than the 3.6 per cent growth in the fourth quarter of last year,” MCA believes that Singapore has the capacity and generosity to enable a revised rate.

Malaysia and Singapore have a long shared history and endless familial ties. Keeping to the adage of “prosper thy neighbour,” MCA hopes Singapore will be reasonable to enable a readjusted water rate which works to a win-win situation for both nations. We believe that Singapore has the maturity to not adopt the threat by its late Prime Minister Lee Kuan Yew to send troops to Malaysia over water supply differences.

Dato’ Sri Ti Lian Ker
MCA Publicity Spokesperson
MCA Central Committee Member

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