Malaysia Keep Saying That Water Agreement Pricing Is “Morally Wrong”


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I read with amusement that Mahathir and his other Malaysian officials are bashing up Singapore again. Whenever there are internal economic woes, Mahathir and his team will start chanting “bash Singapore” to distract the local population from the domestic problems back at their home in Malaysia. 
Recently last week, Mohd Solihan Badri, Media director of Johor chapter of Mahathir”s Parti Pribumi Bersatu Malaysia appealed to Singaporeans to urge our government to review the prices of the water deal with Malaysia, reiterating that the agreement is “morally wrong”. 
The water agreements are actually confirmed and guaranteed by both Singapore and Malaysian Governments in the 1965 Separation Agreement, also known as the Independence of Singapore Agreement. Any breach of the Water Agreements would also call into question the Separation Agreement and can undermine the existence of Singapore. We need to respect the sanctity of the Water Agreements. 
Singaporean investors who hold properties and direct stocks exposure in Malaysia may need to take into account the higher political risk in their investment portfolio based on the current hostility exhibited by the Malaysian Prime Minister. Mahathir is notorious for introducing changes in policies such as capital control targeted against Singaporeans. The Central Limit Order Book (“CLOB”) saga in 1998 is a good example where the accounts of Singaporean investors were frozen and their claims declared invalid by the Malaysian government.
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