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Wednesday, September 26, 2001, updated at 08:26(GMT+8)
World  

Singapore-Malaysia Agreement A Psychological Breakthrough: FM

Singapore Minister for Foreign Affairs S. Jayakumar said Tuesday that the deal to settle outstanding disputes between Singapore and Malaysia marks a psychological breakthrough in the relations between the two countries and is a compromise made by both sides.

While responding to legislators, the minister underlined that Singaporeans should support the proposed deal to settle long smouldering disputes .. even if parts of the deal favor Malaysia.

"It shows that, despite sporadic problems in our relations, both countries recognize the value of cooperation and that each country has a stake in the other's stability and growth," he added.

The framework agreement was the outcome of the meeting between Singapore's Senior Minister Lee Kuan Yew and Malaysian Prime Minister Mahathir Mohamad in Kuala Lumpur earlier this month.

The key elements of the broad agreement between the two leaders are the long-term supply of water to Singapore beyond 2061, implementation of the previously-arrived Point of Agreement, the proposal for a new bridge to replace the existing Causeway, use of Malaysian airspace by Singapore's air force and the early withdrawal of CPF (Central Provident Fund) funds by West Malaysians.

"Some of the items are not balanced in our favor," Jayakumar said, giving example that Singapore had to reduce the amount of water it was requesting from Malaysia, which currently supplies more than half of Singapore's water by pipeline.

Jayakumar said that the proposed price increase will commence only after full agreement on the package has been finalized with Malaysia and only after it is signed by both prime ministers.

He stressed that any increase in the overall retail price of water, arising from the higher raw water price paid to the state of Johor, Malaysia, should be "manageable".

He also said that Singapore will continue with its plans for desalination as well as water reclamation to produce NEWater.







In This Section
 

Singapore Minister for Foreign Affairs S. Jayakumar said Tuesday that the deal to settle outstanding disputes between Singapore and Malaysia marks a psychological breakthrough in the relations between the two countries and is a compromise made by both sides.

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