20 August, 2018
SINGAPORE – While Singapore appreciates the new Malaysia government's reasons to review and change various policies of the previous administration, Prime Minister Lee Hsien Loong made it clear on Sunday (Aug 19) that both countries have to adhere to agreed terms relating to water prices and the Kuala Lumpur-Singapore High-Speed Rail (HSR) project.
Both issues have been sticking points in recent months, with Malaysia's Prime Minister Dr Mahathir Mohamad repeatedly saying that his country is selling water to Singapore at too low a price, and most recently, suggesting that it should be raised by at least 10 times.
Shortly after winning the May 9 general election, Dr Mahathir had also said that Malaysia wants to cancel the HSR project, though Putrajaya has since shifted its position to wanting to defer the project.
Commenting on both issues for the first time at the National Day Rally, Mr Lee stressed that the 1962 Water Agreement between the two neighbours is "sacrosanct".
"We must proceed strictly in accordance with its terms," he said.