KUALA LUMPUR: Based on the price of water sold to Singapore according to the 1962 Water Agreement, the republic can be said to have received at least RM2.4 billion in "subsidy", or RM42 million a year or roughly RM100,000 a day from Malaysia, the Dewan Rakyat was told.
“We sell (water) at a very low price, but buy it back at a high price,” said Foreign Minister Datuk Saifuddin Abdullah in response to a question from Datuk Seri Dr Wan Junaidi Tuanku Jaafar (GPS-Santubong) on whether an element of subsidisation exists in the agreement.
Saifuddin, at the same time, also took to task Singapore Foreign Affairs Minister Vivian Balakrishnan, whom in the Singapore Parliament had criticised Malaysia by saying it had no right to review the agreement after 25 years.
“Clause 14 of the agreement states that ‘it shall be subject to review after the expiry of 25 years from the date of these presents..’ not at the 25th year.
“As such, I do not understand the type of English used by the Singapore Foreign Minister, given his interpretation. We respect agreements, that is why we say we can review the agreement after 25 years,” he said.
Responding to an additional question from Siti Zailah Mohd Yusoff (Pas-Rantau Panjang), Saifuddin said Malaysia is ready to refer the case to the International Court of Arbitration if efforts at the negotiating table prove unsuccessful.
Last August, Prime Minister Tun Dr Mahathir Mohamad said he aimed to increase the price of raw water sold to Singapore by 1,000 per cent, to reflect the increased cost of living from when the agreement between both countries was inked.
The prime minister repeated his stand on the issue in February, saying that Saifuddin had been tasked with leading the talks with Singapore on the issue.
“By rights, we should have already entered the second stage, which is studying the pricing modality and its term, as well as how to achieve it,” said Saifuddin.
The agreement, which ends on 2061, goves Singapore the right to purchase up to Rm250 million gallons of raw water daily from Sungai Johor.
Singapore pays only 3 sen per 1,000 gallons of raw water and sells treated water back to Johor at 50 sen per 1,000 gallons. --Bernama