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MFA: Malaysia lost right to review water price in 1987

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Singapore has been clear and consistent in its position that Malaysia lost its right to review the price of water under the 1962 Water Agreement in 1987, Singapore's Ministry of Foreign Affairs (MFA) said yesterday.

The statement, on the second and final day of Malaysian Foreign Minister Saifuddin Abdullah's introductory visit, comes as Malaysia's national news agency Bernama quoted him as saying in an interview that "the agreement says the content of the agreement can be reviewed after 25 years".

"It doesn't mean at 25 years... so we can continue talking," Bernama reported Mr Saifuddin as saying in the Monday interview.

MFA said Singapore's position was most recently set out in Foreign Minister Vivian Balakrishnan's remarks in Parliament on July 9.

Dr Balakrishnan had told the House that Malaysian leaders had previously acknowledged that they chose not to ask for a review in 1987 because they benefited from the pricing arrangement under the agreement: Johor buys treated water from Singapore at 50 Malaysian sen for every 1,000 gallons, which is a fraction of the true cost of treating the water.

Discussions covered a range of regional developments and bilateral issues, including the KL-Singapore High Speed Rail (HSR) and the 1962 Water Agreement. part of an MFA statement over what was discussed during Malaysia Foreign Minister Saifuddin Abdullah's visit here

Dr Balakrishnan had added that in 2002, Malaysian Prime Minister Mahathir Mohamad said the country did not ask for a review when it was due as it knew that any revision would also affect the price of treated water.

The issue of water was among the issues discussed during the visit of Mr Saifuddin, who called on President Halimah Yacob and Prime Minister Lee Hsien Loong on Monday, and on Deputy Prime Minister and Coordinating Minister for National Security Teo Chee Hean yesterday.

Mr Saifuddin also had a meeting with Dr Balakrishnan on Monday, followed by lunch.

"During the visit, both sides reaffirmed our commitment to work closely together to build on our strong bilateral relations for mutual benefit," the MFA said.

"Discussions covered a range of regional developments and bilateral issues, including the KL-Singapore High Speed Rail (HSR) and the 1962 Water Agreement," it added.

"Singapore's leaders emphasised the importance of abiding strictly by the agreements and contracts related to these matters, while exploring potential new areas of collaboration," MFA said. - THE STRAITS TIMES

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