Price of raw water sold to S’pore can’t stay unchanged forever, says Dr M
The prime minister says the prices of goods ‘must move with the times’.
PUCHONG: Citing the price of Malaysian raw water sold to Singapore, which has remained unchanged since 1962, Prime Minister Dr Mahathir Mohamad today said the prices of goods must change with the times.
Mahathir said the price of raw water sold to the island republic has remained at 3 sen per 1,000 gallons since the agreement was signed in 1962.
He also related instances when he was young and would go to shops in the village with only 1 sen to buy two or three spices sold there.
“At that time, you could buy a lot of things with 1 sen. But 1 sen does not get you anything now. Even 3 sen will not get you anything, not even a packet of nasi lemak.
“The prices of goods must move with the times. These days, we do not talk about millionaires but billionaires, simply because the income earned has gone up.
“So, for us to charge a price which was determined in 1962 to remain until, say, the year 3000, is that reasonable? I do not think it is reasonable,” he said at a press conference after launching the National Community Policy here today.
Also present were Housing and Local Government Minister Zuraida Kamaruddin, Selangor Menteri Besar Amiruddin Shari and Communications and Multimedia Minister Gobind Singh Deo, who is also the Puchong MP.
On whether the Johor government has been instructed to hold negotiations with Singapore on the issue of the sale of raw water, Mahathir said Foreign Minister Saifuddin Abdullah will be leading a delegation to negotiate with the island state.
“We are working towards this,” he said.
It is not the first time that Mahathir has raised the issue. Last year, he had criticised the price of raw water sold to Singapore as “ridiculous”, and voiced his intent to renegotiate the terms.
The water agreement, which expires in 2061, entitles Singapore to draw up to 250 million gallons a day (mgd) of raw water from the Johor river daily. In return, Johor is entitled to a daily supply of treated water of up to 2% or 5 mgd of the water supplied to Singapore.
Singapore pays 3 sen per thousand gallons of raw water, and sells treated water back to Johor at 50 sen per thousand gallons.
The 1961 and 1962 water agreements provide for a price review after 25 years – in 1986 and 1987, respectively. Malaysia chose not to review the price then.
However, Singapore allowed for a renegotiation of the issue when Mahathir later raised it in 1998.
Over the span of four years, both countries held several rounds of talks on water and other bilateral issues as part of a package.
Malaysia continually raised its asking price for water, and the matter became a sore point in relations.
In October 2002, Mahathir reportedly decided to abandon the process.
Earlier, when launching the National Community Policy, Mahathir called on Malaysians to foster better community relations by setting up community clubs in their villages or housing areas.
He said that every village or housing area should adopt a way of life which takes into account the interest of its residents.
“Owning houses alone is not enough. We live in a community, and in a community, we need good relations among members of that community.
“That is why we want to build a community way of life. Homeowners in villages and housing areas need to forge closer cooperation, for instance through the setting up of a community club,” he said.
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The policy comprises of eight clusters: infrastructure and maintenance; cleanliness, environment and health; security; education and skills; concern for children, senior citizens, the disabled, women, single mothers and the underprivileged; entrepreneurship and social business; social services; as well as sports and recreation.