Malaysian premier says a decades-old, fixed rate supply contract is 'too costly' and 'ridiculous' while the rich city-state maintains that a deal is a deal
In resource-scarce Singapore, water is sacrosanct. Water security has long been a perennial concern for the otherwise rich city-state, which for decades has relied on water imports from neighboring Malaysia to meet demand.
Now, a contentious dispute over those contractual water sales that previously stoked bilateral tensions has resurfaced under newly elected Malaysian Prime Minister Mahathir Mohamad, who recently described the decades-old deal as “too costly” and “manifestly ridiculous.”
Under the 1962 agreement, Singapore can import up to 250 million gallons of raw water per day from the Johor River at the low cost of 0.03 Malaysian ringgit per 1,000 gallons.
The legally binding agreement was guaranteed by both governments and registered with the United Nations when Singapore separated from Malaysia to become an independent state in 1965. The deal is not due to expire until 2061.
Malaysia sought a price revision during Mahathir’s previous term as premier, a dispute that severely strained ties in the early 2000’s, but talks stalled and were ultimately abandoned.
Nile Bowie is a writer and journalist with the Asia Times covering current affairs in Singapore and Malaysia. He can be reached at nilebowie@gmail.com.
In resource-scarce Singapore, water is sacrosanct. Water security has long been a perennial concern for the otherwise rich city-state, which for decades has relied on water imports from neighboring Malaysia to meet demand.
Now, a contentious dispute over those contractual water sales that previously stoked bilateral tensions has resurfaced under newly elected Malaysian Prime Minister Mahathir Mohamad, who recently described the decades-old deal as “too costly” and “manifestly ridiculous.”
Under the 1962 agreement, Singapore can import up to 250 million gallons of raw water per day from the Johor River at the low cost of 0.03 Malaysian ringgit per 1,000 gallons.
The legally binding agreement was guaranteed by both governments and registered with the United Nations when Singapore separated from Malaysia to become an independent state in 1965. The deal is not due to expire until 2061.
Read the full story at Asia Times.
