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#1
29-07-2013, 03:50 PM
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Dr mahathir: Malaysia must re-negotiate water deal with singapore
An honorable member of the Coffee Shop Has Just Posted the Following:
The bilateral ties across the causeway is bound to turn sour with former prime minister Tun Dr Mahathir Mohamad calling for the re-negotiation of the sensitive water agreement between Malaysia and Singapore. Mahathir in his blog today said the country is being “short-changed” in the raw water deal, stressing the current rate of 3 sen per 1,000 gallon was “ridiculous.” He pointed out that in the present agreement, Malaysia will only get RM30 from selling 1,000,000 gallons of raw water. “Malaysia can buy 12% of the raw water treated by Singapore at 50 sen per 1,000 gallons i.e for 120,000 gallons, Malaysia has to pay RM60 for this. “But the cost of treating water is RM1.09 (say RM1.10). The savings for Malaysia is therefore 60 sen per 1,000 gallons, equals to RM72 for 120,000 gallons,” Mahathir wrote in chedet.cc. “Since 3 sen is ridiculous, supposing Malaysia wishes to ask for 6 sen per 1,000 gallons, an increase of 100%. It can only do so if Singapore agrees. “It can be assumed that Singapore would want to increase the price of treated water. It may ask for the same quantum i.e a 100% increase to RM1 per 1,000 gallons. “For 120,000 gallons, Malaysia will have to pay RM120. The cost of treatment for 120,000 gallons is RM1.10 x RM120 = RM132. The benefit for Malaysia would be reduced to RM12 due to the increase in price,” he added. He said only through a re-negotiation will Singapore be persuaded to not increase its rate for treated water. Mahathir also recommended the government to consider building its own water treatment plant to end Singapore’s monopoly over the rate of treated water. “That is why negotiations are necessary from time to time. We should not allow ourselves to be short-changed over the next 57 years to 2060. “Malaysia should learn to include exit clauses when entering into agreements. It should always remember that over time money depreciates,” he said. Click here to view the whole thread at www.sammyboy.com. 
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