pywong
17th May 2009, 12:23 PM
Does anyone remember the water dispute (http://www.singapore-window.org/sw02/021101af.htm) between Malaysia and Singapore back in 2002 (here (http://moduleblog.nus.edu.sg/blogs/hy4210/archive/2007/02/22/malaysia-singapore-water-dispute-web-sources.aspx) and here (http://politics.sgforums.com/forums/10/topics/53405)) during which it seemed that the two countries were about to go to war? Well, last night (16 May 09), at the BUM2009 forum (http://tindakmalaysia.com/tm_forums2008/index.php/topic,923.msg3997.html#new) and here (http://mt.m2day.org/2008/content/view/21961/84/), Tun Mahathir brought up the issue again. He quoted a figure of RM 0.03 per 1000 gallons of raw water and claimed that Singapore, unreasonably, refused to allow Malaysia to raise the price.
A remarkable talent of Tun Mahathir is his ability to twist the facts to suit his argument. Here is some background on the water dispute.
Water agreements signed between Malaysia and Singapore:
Tebrau and Scudai Water Agreement 1961 – 2011: 86 million gallons of water per day (mgd) (0.39 million m3/d) from the Pontian and Gunung Pulai Reservoirs, as well as the Tebrau and Skudai Rivers. (In 2002, due to the quarrels between Malaysia and Singapore over the water issue, Singapore announced that it might allow the 2011 Water Agreement to lapse, as it is now capable of replacing water from the 1961 Agreement with NEWater (http://www1.american.edu/ted/ice/singapore.htm) (The Straits Times, 4 August 2002). This made sense as the Tebrau and Scudai Rivers are getting too polluted from human development around it.)
Johor River Water Agreement 1962 – 2061: 250 mgd (1.134 million m3/day) of water to be drawn from the Johor River.
In total, these agreements allow Singapore to draw up to 250.4 mgd (1.35 million m3 per day). Both agreements are honoured under the 1965 Separation Act between Singapore and Malaysia, and lodged with the United Nations.
Singapore pays Malaysia (the Johor Government) RM 0.03 for every 1000 gallons (4,546 m3) drawn from these rivers. In turn, the Johor Government pays Singapore RM 0.50 for every 1000 gallons of treated water. Singapore, however, is legally obliged to sell 0.077 million m3 (17 million gallons) daily to Johor
Both also contain a provision that allows for a review of water prices in 25 years time, and arbitration in the event of a disagreement. Prices can be revised in line with the purchasing power of money, labour costs, and cost of power and materials used to supply water. Malaysia did not revise water rates in 1986 and 1987 because of financial considerations. If the Johor government raises the price of raw water, it would concurrently have to pay dearer prices for the treated water it buys from Singapore. (This argument doesn't hold water because the extra payment for this water can be covered by the extra revenue from the sale of water at a higher price.)
Singapore buys water from Johor at RM 0.03 sen/4.546 m3 (RM 0.03 sen/1000 gallons). It sells treated water to Johor at RM 0.50/4.546 m3 (RM 0.50/1000 gallons), although treatment costs Singapore RM 2.40/4.546 m3. Effectively, Singapore is subsidising Johor at a rate of RM 1.90/4.546 m3. Table 5 provides the volume of water sold to Johor in selected years.
Johor presently purchases around 0.168 million m3 (37 million gallons) of water from Singapore daily and sells this at RM 3.95/4.546m3 to its consumers (The Straits Times, 28 January 2002). Hence, Singapore has been providing a subsidy of RM 29 million to Johor by selling treated water at the rate of RM 0.50/4.546 m3
1986 and 1987 passed without incident.
Singapore given more water
In June 1988, a Memorandum of Understanding on water and gas was signed between the then prime minister, Mr Lee Kuan Yew, and the Malaysian prime minister, Dr Mahathir Mohamad, which gave Singapore the right to construct more reservoirs and to draw more than what has been presently set for an additional one hundred years (The Business Times, 28 June 1988; The Straits Times, 28 Jun 1988; 29 June 1988). This is meant for the extraction of water from the Johore River.
In 1986 and 1987, Malaysia could have revised the price of the water but she did not do so. Instead, the subject was only raised in September 2001 – a lapse of 15 years! Dr. Mahathir wanted to charge RM 0.60 per 1000 gallons whereas Singapore offered RM 0.45 instead as part of a package involving other issues. The issues are discussed in great detail here (http://www.iseas.edu.sg/ef12003.pdf).
The question we need to ask ourselves: Is this quarrel over economics or politics? (http://www.polsis.uq.edu.au/apsa2008/Refereed-papers/Ting.pdf)
One thing that is clear is that our Malaysian bureaucrats are lousy negotiators. They always get out-manouvered by the Singaporeans. On top of that, it takes decades for them to wake up and then they will go into a song and a dance, making all sorts of empty threats, especially Syed Hamid Albar, (http://www.singapore-window.org/sw02/021101af.htm) who has a wonderful talent for making Malaysia look stupid.
Another interesting thought is: It is now more than 7 years since the dispute was created by Dr. Mahathir but no one seems to bother anymore. If we had managed to get RM 0.60 per 1000 gallons, we would have received another RM 52 million a year!
Conclusion: This is one of the typical charades conducted by the Ruling Class to distract the masses.
A remarkable talent of Tun Mahathir is his ability to twist the facts to suit his argument. Here is some background on the water dispute.
Water agreements signed between Malaysia and Singapore:
Tebrau and Scudai Water Agreement 1961 – 2011: 86 million gallons of water per day (mgd) (0.39 million m3/d) from the Pontian and Gunung Pulai Reservoirs, as well as the Tebrau and Skudai Rivers. (In 2002, due to the quarrels between Malaysia and Singapore over the water issue, Singapore announced that it might allow the 2011 Water Agreement to lapse, as it is now capable of replacing water from the 1961 Agreement with NEWater (http://www1.american.edu/ted/ice/singapore.htm) (The Straits Times, 4 August 2002). This made sense as the Tebrau and Scudai Rivers are getting too polluted from human development around it.)
Johor River Water Agreement 1962 – 2061: 250 mgd (1.134 million m3/day) of water to be drawn from the Johor River.
In total, these agreements allow Singapore to draw up to 250.4 mgd (1.35 million m3 per day). Both agreements are honoured under the 1965 Separation Act between Singapore and Malaysia, and lodged with the United Nations.
Singapore pays Malaysia (the Johor Government) RM 0.03 for every 1000 gallons (4,546 m3) drawn from these rivers. In turn, the Johor Government pays Singapore RM 0.50 for every 1000 gallons of treated water. Singapore, however, is legally obliged to sell 0.077 million m3 (17 million gallons) daily to Johor
Both also contain a provision that allows for a review of water prices in 25 years time, and arbitration in the event of a disagreement. Prices can be revised in line with the purchasing power of money, labour costs, and cost of power and materials used to supply water. Malaysia did not revise water rates in 1986 and 1987 because of financial considerations. If the Johor government raises the price of raw water, it would concurrently have to pay dearer prices for the treated water it buys from Singapore. (This argument doesn't hold water because the extra payment for this water can be covered by the extra revenue from the sale of water at a higher price.)
Singapore buys water from Johor at RM 0.03 sen/4.546 m3 (RM 0.03 sen/1000 gallons). It sells treated water to Johor at RM 0.50/4.546 m3 (RM 0.50/1000 gallons), although treatment costs Singapore RM 2.40/4.546 m3. Effectively, Singapore is subsidising Johor at a rate of RM 1.90/4.546 m3. Table 5 provides the volume of water sold to Johor in selected years.
Johor presently purchases around 0.168 million m3 (37 million gallons) of water from Singapore daily and sells this at RM 3.95/4.546m3 to its consumers (The Straits Times, 28 January 2002). Hence, Singapore has been providing a subsidy of RM 29 million to Johor by selling treated water at the rate of RM 0.50/4.546 m3
1986 and 1987 passed without incident.
Singapore given more water
In June 1988, a Memorandum of Understanding on water and gas was signed between the then prime minister, Mr Lee Kuan Yew, and the Malaysian prime minister, Dr Mahathir Mohamad, which gave Singapore the right to construct more reservoirs and to draw more than what has been presently set for an additional one hundred years (The Business Times, 28 June 1988; The Straits Times, 28 Jun 1988; 29 June 1988). This is meant for the extraction of water from the Johore River.
In 1986 and 1987, Malaysia could have revised the price of the water but she did not do so. Instead, the subject was only raised in September 2001 – a lapse of 15 years! Dr. Mahathir wanted to charge RM 0.60 per 1000 gallons whereas Singapore offered RM 0.45 instead as part of a package involving other issues. The issues are discussed in great detail here (http://www.iseas.edu.sg/ef12003.pdf).
The question we need to ask ourselves: Is this quarrel over economics or politics? (http://www.polsis.uq.edu.au/apsa2008/Refereed-papers/Ting.pdf)
One thing that is clear is that our Malaysian bureaucrats are lousy negotiators. They always get out-manouvered by the Singaporeans. On top of that, it takes decades for them to wake up and then they will go into a song and a dance, making all sorts of empty threats, especially Syed Hamid Albar, (http://www.singapore-window.org/sw02/021101af.htm) who has a wonderful talent for making Malaysia look stupid.
Another interesting thought is: It is now more than 7 years since the dispute was created by Dr. Mahathir but no one seems to bother anymore. If we had managed to get RM 0.60 per 1000 gallons, we would have received another RM 52 million a year!
Conclusion: This is one of the typical charades conducted by the Ruling Class to distract the masses.