Malaysians are nice and will negotiate with Singapore like "good, civilised people", said Malaysian Prime Minister Mahathir Mohamad.

He made this comment during the question-and-answer session after his keynote speech at the Malaysia Invest 2019 on Tuesday, March 19.

Normal to have problems with neighbours

When asked about Malaysia's bilateral relations with its southern neighbour, particularly on the issues of "water, airspace, and the high speed rail", Mahathir said the water price issue is a "particular issue" that needs to be attended to.

He said:

"Neighbours always have problems with each other. It's normal. [Crowd laughs]

But the important thing is how the problems are managed.

We have not gone to war with Singapore. We are not going to war because we are not a war... country."

Water price issue

He continued by saying that Malaysia has been talking to Singapore on several issues, including the "water" issue, and the "central provident fund", which he might have mistaken for the Instrument Landing System (ILS).

He then went into how Malaysia has been selling raw water to Singapore at 3 sen per 1,000 gallons since 1926.

"In 1926, that's almost 100 years ago, when Malaysia and Singapore were under the British, the British decided to sell Johor raw water at three sen per 1,000 gallons.

At that time, in 1926, three sen can buy a lot of things.

I've been to shops with my (pocket) money to buy, I could buy two or three items with one sen.

But now three sen cannot buy even a quarter of a murukkus nasi lemak."

However, the narrative that Malaysia has been selling water to Singapore for cheap since 1926 has already been proven to be factually inaccurate by Singapore's Chief of Government Communications, Janadas Devan.

Malaysia "can still negotiate" water price with Singapore

Mahathir also repeated Malaysia's stance that Malaysia has a right to review the water prices set under the 1961 water agreement.

He was most likely referring to the 1962 agreement, as the 1961 agreement had already expired in 2011.

He said:

"But recently Singapore says that since we did not review after 25 years, we have lost the opportunity to review.

But then 25 years after 1961 is 2087 [sic]. In 2087 [sic], I was Prime Minister, I was shouting loudly about this thing.

How can it be said that we didn't try to negotiate?

But now it's admitted that we can still negotiate, because now is still after 25 years."

Malaysia chose not to review

However, this contradicts what Singapore has said previously on the issue.

Singapore's Foreign Affairs Minister Vivian Balakrishnan said in Parliament in July 2018 that Malaysia has "previously acknowledged that they themselves chose not to ask for a review in 1987 because they benefited from the pricing arrangement under the 1962 Water Agreement".

According to Vivian, Mahathir said in 2002, during his "first incarnation", that Malaysia did not ask for a review when it was due as Malaysia knew that any revision would also affect the price of treated water sold by Singapore to Malaysia.

Malaysia lost right to review water prices in 1987

Singapore has maintained that Malaysia had already lost the right to review the water prices under the 1962 water agreement in 1987.

Furthermore, as both the 1961 and 1962 water agreements were guaranteed under the 1965 Separation Agreement, breaching the 1962 agreement would also void the Separation Agreement, and would undermine Singapore’s independence and sovereignty.

The 1962 water agreement with Malaysia, therefore, has to be honoured.

Negotiate like civilised people

Finally, Mahathir said although he does not know if Singapore is "logical" in insisting that the water price set in "1926" should remain in "the year 2000", Malaysia will still negotiate with Singapore.

He said to rousing applause from the audience:

"But we are nice people. We don't say much.

We are trying to negotiate like good, civilised people."

More bridges needed between Singapore and Malaysia

In addition, Mahathir said Singapore and Malaysia need "at least three to four more bridges" to help with traffic flow between the two countries.

However, he claimed that Singapore does not want any more bridges, for some reason which he "cannot understand".

Both countries are currently linked via the Woodlands Causeway and the Tuas Second Link.

Mahathir said in August 2018 that there is "already some plan" when it comes to a third link, reported Channel NewsAsia (CNA).

However, a spokesperson from Singapore's Ministry of Transport said at that time that Singapore has not received "any official proposal or communications from Malaysia regarding a third link between Singapore and Malaysia."

RTS project between Woodlands and Johor Bahru

Mahathir mentioned that the Rapid Transit System (RTS) project that links Singapore's Woodlands to Johor Bahru is "permissible", and that Malaysia is currently negotiating to "find what is the best solution".

Previously, Singapore's Transport Minister Khaw Boon Wan said in a written response in January 2019 that the project was "behind schedule and not progressing well".

This was due to Malaysia wanting to change their Joint Venture partner past June 2018, although the agreement stated that a Joint Venture partner was to be confirmed by then.

As for the Kuala Lumpur-Singapore High Speed Rail (HSR) project, both countries agreed in September 2018 to suspend the project, with Malaysia bearing the agreed costs in the suspension.

You can watch the question-and-answer session here (timestamp at 3:39 for Mahathir's comments on bilateral issues with Singapore):

Top image via Mohd Daud/NurPhoto via Getty Images