Singapore Prime Minister Lee Hsien Loong and Malaysia Prime Minister Mahathir Mohamad met at the 9th Singapore-Malaysia Leaders' Retreat on Tuesday, April 9, 2019.

During the joint press conference after the retreat, they answered a series of questions from reporters who asked about the state of bilateral relations and how Singapore views criticisms towards its newly proposed anti-fake news law.

Water price issue

PM Lee also fielded a question from a reporter with Malaysian media company Media Prima, who asked if Singapore views Malaysia's request for the water price revision as "reasonable", and "how much is the reasonable price".

The question brought a good deal of chuckles from around the room, and both leaders smiled, while Mahathir looked over to PM Lee briefly.

PM Lee then proceeded to answer the question.

Here are the points that PM Lee made.

Water agreement linked to Singapore's sovereignty

PM Lee told Mahathir that he could understand the latter's perspective on why he sees "political necessity to press hard for water price revision".

Nevertheless, PM Lee said he had also asked Mahathir to see the issue from "Singapore's point of view".

Mahathir's reaction at that moment:

PM Lee continued by saying that this was an agreement reached between the two water authorities (Public Utilities Board on Singapore's side and then-Johor water department on Malaysia's side) in 1962.

The agreement was subsequently guaranteed by the two governments at the federal level, and in Singapore, at the national level in 1965 in the separation agreement.

"And so it's a fundamental founding document for us, and we have to go according to this document."

Mahathir's reaction:

PM Lee explained further:

"It's a basic term on which the two countries decided to manage our relationships. So if you look at it from that point of view, to be able to change that, is a very high hurdle.

Because the first prime minister who signed it, didn't change it.

The second prime minister, who negotiated the package deal with Malaysia, in the end, there was no final agreement, and the water price was not changed."

"Find a way forward"

PM Lee then repeated what he said at the start, that while he can understand Mahathir's perspective, he hopes that the latter will be able to see Singapore's perspective as to why it is such a "sacrosanct item".

Mahathir's mood:

PM Lee continued:

"... therefore, let us try to find a way forward which enables us to talk constructively about this issue and hopefully be able to make some progress."

You can watch the segment here:

Open to arbitration

In a joint statement released after the retreat, both leaders noted the "differing positions of both sides on the right to review the price of water under the 1962 Agreement".

They also remain open to the "possibility of dispute resolution through arbitration on a mutually agreed basis".

In addition, they "reiterated their commitment to preserving the vital relations and to improving bilateral ties on the basis of equality and mutual respect".

Both leaders also welcomed the progress made on the ongoing bilateral issues involving the maritime boundary on both sides, as well as airspace management over southern Johor.

Top image via CNA/YouTube