Singapore-Malaysia Water Dispute

Singapore relied heavily on Malaysia for water.

• Underlying disagreements included ethnicity and politics (the 1964 racial riots), economics, the separation from Malaya, and Pedra Branca.

Pedra Branca is an island in the Singapore Strait; control of it gives access to an exclusive economic zone (EEZ).

• December 1979 - Malaysia places it on a new map as part of Johor; Singapore protests in February 1980.
• Malaysia's claim - sovereignty of the Johor-Riau-Lingga sultanate in 1513, and British permission from the Sultan of Johor to build a lighthouse.
• Singapore's claim - the Anglo-Dutch Treaty (1824) and possession since 1965.
• 1990s - Singapore installed a radar tower on the island; Malaysia accused it of chasing away fishermen.

• Britain gave the KTM a 40-km track corridor leased for 999 years, with operations at Tanjong Pagar.
• 1989 - Singapore proposed moving the CIQ facilities to Woodlands.
• 1990 - the Points of Agreement (POA): KTM to vacate Tanjong Pagar, and the land to go to Singapore.
• Malaysia said it would move to Woodlands in 1993, but in June 1997 it reversed course and stayed.
• Dispute arose over whether the POA took immediate effect.

• 1961 - gave Singapore exclusive rights to extract water from designated Malaysian areas for 50 years, to 2011; Singapore paid S$5 per acre a year in rent plus 3 cents per 1,000 gallons, and supplied Johor with treated water up to 12% of the raw water drawn.
• 1962 - the right to draw up to 250 million gallons a day from the Johor River; Johor was entitled to 2% of the treated water.
• Both agreements were made before Singapore's independence and merger, so Malaysia could not nullify them on separation grounds.
• 1990 - a Supplementary Agreement for a dam across Sungei Linggiu; Singapore paid $300 million and the dam is owned by Johor; signed 24 November 1990 between PUB and the Johor government, following an MOU signed 28 June 1988 by both prime ministers.

• Malaysia's view - the water price was unfair and Singapore profited too much.
• Singapore's view - Malaysia constantly changed its stance and used the issue as leverage.

• 1998 - Malaysia sought a higher price, arguing the 1961-62 agreements were outdated.
• The agreements allowed renegotiation after 25 years (that is, in 1986-87).
• The key argument was over whether Malaysia's right to renegotiate had lapsed.
• The Asian Financial Crisis of 1997, with a poor economy and elections, made the dispute a rallying point for the Malaysian government.
• The agreement was due to expire in 2011.

• Malaysian leaders used Singapore as an outlet to assert dominance and to distract from local conflicts.
• Lee Kuan Yew remarked that re-merger would be easier if Malaysia practised meritocracy, provoking Malaysian anger.