PM Lee and Dr M open to 3rd party arbitration to address water woes

Kuala Lumpur—With water possibly the most contentious issue within bilateral relations, the Prime Ministers of Singapore and Malaysia said at their first Leaders’ Summit that they are willing to consider third-party arbitration as each side airs its views concerning the price of water that Malaysia sells to Singapore under an agreement drawn up in 1962. According to PM Lee, the leaders have had many discussions “to turn things around gradually to bring them to where we are today.” He said, “So we have, as TS Eliot says, we have come back to our starting place and we are recognising it for the first time.” Dr Mahathir was similarly positive in his comments, expressing hope that Singapore and Malaysia could keep on “the momentum of positive engagements.” For the water issue, which has not thus far found a resolution, unlike the airspace and maritime disputes, both Prime Ministers said they’ve asked their attorney general to present each country’s side. They have agreed to explore “amicable solutions, including the possibility of dispute resolution through arbitration on a mutually agreed basis”. At one point in the past, with Singapore saying it was ready for resolution via third-party arbitration, it was Dr Mahathir who balked at the suggestion. He has also said that should the two countries resort to this, Singapore would lose. PM Lee expressed to his Malaysian counterpart that each country should “find a way forward that enables us to talk constructively about this issue and hopefully be able to make some progress.” While he admitted to understanding Dr Mahathir’s point of view on the matter, as well as the “political necessity” for the Malaysian Prime Minister to urge for a revision in the water prices, he also asked Dr Mahathir to see things from the perspective of Singapore. "I can understand Dr Mahathir's perspective. I hope that he will be able to see Singapore's perspective, why this is such a sacrosanct item,” said the Singaporean Prime Minister. Dr Mahathir had said on Tuesday that the water price review ranks high on his government’s priority list. On his part, PM Lee emphasized how The 1962 Water Agreement is a "fundamental founding document" for both countries. He said, "It is a basic term on which the two countries decided to manage our relationship. If you look at it from that point of view, to be able to change that is a very high hurdle."

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