KUALA LUMPUR: The government has subsidised Singapore over RM2.4 billion in the selling of raw water to the island republic, since the signing of the 1962 Water Agreement, according to Foreign Minister Datuk Saifuddin Abdullah.
“It is estimated that Malaysia has provided a minimum subsidy rate of about RM42 million each year to Singapore, or about RM2.4 billion since the signing of the Water Agreement,” he told the Dewan Rakyat, here today.
“That’s about RM100,000 each day. This is the minimum rate that we subsidise. So it is true that we are selling at a much lower price compared with the treated water we buy from them, which is much more expensive.”
He was responding to a supplementary question from Datuk Seri Dr Wan Junaidi Tuanku Jaafar (GPS-Santubong), on whether there were any form of subsidies involved in the selling of water to neighbouring Singapore.
The water agreement, which was signed over half a century ago, sees Malaysia selling raw water at 3 sen per 1,000 gallons, while Singapore in turn sells treated water at 50 sen per 1,000 gallons.
Saifuddin also took a swipe at his counterpart Vivian Balakrishnan over statements the latter had made in the Singapore parliament earlier this month, which the former described as “reckless accusations”.
“He had said Malaysia disrespected the water agreement, claiming we no longer have a right to review the agreement after 25 years. But Clause 14 of the agreement states that it shall be the subject of review after the expiry of 25 years, not in the 25th year.
“So I don’t understand which English language that is being used by Singapore’s foreign minister to make such interpretation,” he said.
Saifuddin also noted that Balakrishnan had insinuated that Malaysia has issues of governance and that the republic provided more subsidy compared to Malaysia.
“These are malicious accusations, they are hitting below the belt,” he said.
On a question by Siti Zailah Mohd Yusoff (PAS-Rantau Panjang) on what actions would be taken by the government should Singapore decline to review the agreement, Saifuddin said the matter would then be brought up for international arbitration.
“But before that, we must make sure Johor has enough supply of treated water, so we will have to make sure the state has zero-dependency for water from Singapore.
“And if then Singapore refuses to negotiate with us, we will take the matter up to be negotiated at the international level,” he added.
Malaysia and Singapore have locked horns on the water agreement, ever since the Pakatan Harapan government called for a review following its 14th General Election victory.
