Ties Strained Over Water and a Checkpoint : Malaysia's Leader Fires Hot Words at Singapore 
International Herald Tribune
August 5, 1998
Thomas Fuller

Relations between Singapore and Malaysia — rocky during the best of times — hit a new low Tuesday as disputes over water supply to the island republic and a railway border checkpoint came to a boil.

"Malaysia is not a nation that likes to create problems for others," Prime Minister Mahathir bin Mohamad of Malaysia told a crowd of 10,000 roaring supporters. "We do not have a big army to attack anyone. We have tried to be good neighbors. But don't take us for granted."

Speaking in a stadium in Johor Baru, a few kilometers from the border with Singapore, Mr. Mahathir criticized Singapore for asking Malaysia to move its immigration and customs checkpoint from Tanjong Pagar, a railway station in central Singapore.

Diplomats and analysts say Malaysia and Singapore have always had many outstanding disputes — among them water and the railway checkpoint. But underscoring this latest war of words are problems related to the regional economic crisis, they said.

"There's never been a standoff quite like this," said Abdul Razak Abdullah Baginda, executive director of the Malaysian Strategic Research Center, a think tank in Kuala Lumpur. "There's a fundamental problem in the relationship. And there's a feeling that some quarters are exploiting the economic situation."

The issue of the border checkpoint, which has dominated headlines in both countries for several days, is enveloped in controversy over decade-old deals signed between the two countries.

The issue revolves around the fact that Malaysia controls land around the railway station and would have to give it up if it leaves the checkpoint.

"We have been considerate but what did we get in return?" Mr. Mahathir said. "They have asked us to leave Tanjong Pagar when we supply them with water."

Witnesses said the crowd, in response to Mr. Mahathir, chanted: "Cut, cut, cut," a reference to the water pipeline that runs from Singapore to Malaysia. Singapore gets about half of its drinking water from Malaysia.

Chief among the disputes linked to the economic crisis are the relatively high interest rates that Singapore banks offer for ringgit deposits — sucking the Malaysian currency out of the cash-strapped country, and disappointment on Malaysia's part that Singapore, which has fared better during the crisis, has not been more forthcoming with assistance.

Malaysians also complain that Singapore has locked in the deposits of the hundreds of thousands of Malaysians working in the island republic through a mandatory savings plan.

Most important to Singapore is water. The tiny nation of 3 million people has two agreements with Malaysia that expire in 2011 and 2061. Singapore is seeking a third agreement with Malaysia guaranteeing water beyond 2061.

Copyright © 2006 the International Herald Tribune