The crux of the Water issue for S'pore has NEVER been the price of raw water

Extract of Speech by Minister for Foreign Affairs Vivian Balakrishnan in Parliament on Monday (9 Jul 2018) on the SG-Msia Water Agreement, and why it is NOT the price of water that is the problem, BUT the manner in which the price change takes place. Edited video: Shut Down TRS FB page

Just think about it lah.

How would you feel if your mobile phone service provider suddenly increases your mobile service by $X, or decrease the amount of mobile data you have while you are still under Contract. Will you be happy about it? Can you accept it that the phone company can simply change contract terms without your consent?

Fair or not?

How about your domestic helper’s salary? What if your helper just said to you today that she wants her salary to be increased by $x, or maybe from now, cleaning the bathroom will not be part of her job scope; even though the salary and job scope is what was agreed upon when you employed her and she is still under contract. Can you accept these demands and changes from your helper without any discussion?

Reasonable or not?

Similarly, Singapore is being intentionally put in the similar situation by the current M'sian govt.

Singapore has emphasised it time and time again - the issue has NEVER been about the price of raw water. It is the HOW the changes to the agreement are being made by one party only - that is M'sia.

What Singapore is unable, and will never accept, is that the current Malaysian Govt is trying to change the terms of the agreement by themselves (ie: “unilaterally changing the terms of the agreement.”) without having discussed the matter with, or asked if Singapore would sit down to discuss it and come to a new agreement.

To put it simply, BOTH parties must come together to agree to change the terms of any agreement.

And remember, the agreement cuts both ways.

M’sia cannot just anyhow increase the price of RAW, UNTREATED water (which is 3 Sen per thousand gallons) as and when they like.


Note: The raw untreated river water, that S’pore pays 3 sen for, would have flowed into the sea in any case. Plus S’pore also pays for, and maintains all of the necessary infrastructure. (See here for more facts about the water agreement)


Likewise, S’pore also cannot just anyhow increase the price of CLEAN, TREATED water (which is 50 Sen per thousand gallons) that is being sold back to M’sia too.


Note: S’pore’s cost of treating the RAW water (in 2003) is actually RM2.40 per thousand gallons. Contrast the cost of producing CLEAN TREATED water at RM2.40 to the 50 sen price that M’sia pays for clean, treated water from Singapore. And what’s more, the M’sia govt simply re-sells this same clean treated water to Johore citizens at RM3.95! (as of 2003). Who’s the one that is benefiting the most now? (See here for more facts about the water agreement)

Pic: Shut Down TRS FB page

Bear in mind, Singapore has also never said that it would not budge on the water price issue.

All Singapore wants is to have matter properly discussed, and perhaps to have a new agreement that is acceptable and agreed to by BOTH countries.

In fact, what the current M’sian Govt fails to mention or seems to conveniently forget, is that S’pore and M’sia had began negotiations from 1998 to 2003 to discuss the price of raw water as well as several other bilaterial issues which were important to both countries.

And while Singapore tried to settle on terms which were acceptable to both countries, it was Malaysia that kept changing its position on the water price – increasing from 45 sen per thousand gallons in August 2000, to 60 sen in Feb 2001, and then again to RM6.25 in September 2002. The water talks ended in 2002 without any conclusion when then PM Mahathir informed Singapore that Malaysia wanted to “decouple the water issue” from the other items in the negotiations.

(See here for a summary of these negotiations)

So Malaysia, let’s sit down together and talk properly over tek tarik and work out a agreement that acceptable to, and benefits BOTH countries, and not just anyhow talk cock through the media.




Read more here:

Gov.sg YouTube Channel: Speech by Minister Vivian Balakrishnan in Parliament (9 July 2018) on Singapore-Malaysia relations
CNA: Singapore-Malaysia relations: Both countries must fully respect sanctity of international agreements, says Dr Balakrishnan (9 Jul 2018)

CNA: Price of water sold to Singapore 'ridiculous'; Malaysia to renegotiate deal, says Mahathir (25 Jun 2018)

SG Ministry of Foreign Affairs publication: Water Talks? – If Only It Could.
A succinct account of the 1998-2003 SG-Msia negotiations on several bilateral issues, including the price of raw water.  (Back up copy)

SG Ministry of Foreign Affairs publication: Singapore-Malaysia Water Talks: What are the Facts?
(Back up copy)

Ministry of Foreign Affairs Press Release - WATER ISSUE IS ABOUT SANCTITY OF AGREEMENTS, NOT ABOUT PRICE ALONE, SAYS SINGAPORE FOREIGN MINISTER PROF S JAYAKUMAR (Back up copy)

Lee Kuan Yew: The architect of Singapore's water story By Eco-Business (25 March 2015)
(Back up copy)

Read previous posts about Singapore and Water