Saying goodbye to past stresses and strains

NSTOnline, May 23, 2007
By DEVA M. RIDZAM


Malaysian and Singaporean interests are not identical, and they never will be. Both countries must respect these differences as they build on areas of convergence and agreement. LEE Hsien Loong’s visit to Langkawi, reciprocating Datuk Seri Abdullah Ahmad Badawi’s trip to Singapore last year, is the latest step in efforts to develop bilateral relations between our two countries.

The all-important "four-eyes" discussion between the two leaders and the no less significant delegation meeting last week, it is hoped, contributed to better understanding of each other’s aims.

Outstanding issues remain unresolved. However, they ought not prevent the development of a more co-operative relationship, marked by, first, a heightened awareness of each other’s intentions; second, greater recognition of each other’s interests; third, a higher degree of mutual respect and, fourth, a better climate of trust and confidence.

This meeting and the earlier one in Singapore by the two leaders should be seen more as efforts to manage relations. In looking back at our joint history and in looking ahead, channels of communication and dialogue are always important.

But like any two countries, Singaporean and Malaysian interests are not identical, and they never will be.

The first challenge in managing close and substantial bilateral relations is to respect our differences as we build on areas of convergence and, hopefully, of agreement as well.

Strong and multiple ties between our peoples date back many centuries. There are countless exchanges and transactions across the border every day. These "assets" are reflected in our trade and prosperity.

The second challenge is how both sides can resolve outstanding issues, in particular the price of water to Singapore. It is a commercial contract.

This is a straightforward case of what is a fair price between "a willing seller and a willing buyer", after taking into consideration Malaysia’s needs before meeting Singapore’s additional domestic water requirements.

In other words, Malaysia will honour the existing contract relating to the volume of water to be supplied to Singapore for its legitimate domestic needs, but at a new "fair price".

Malaysians remain sore that the price revision has not been agreed to. As a result, Mal-aysians continue to pay a heavy price, measured in hundreds of millions of ringgit in lost revenues.

The water trade is a clear example of interdependence involving costs and benefits to both sides. Our countries must be prepared to pay a fair price and bear acceptable costs and focus on the long term as well as the ups and downs of the moment. Only then can a new deal be worked out.

Malaysians and Singaporeans continue to be concerned that acrimony between their countries remains a stumbling block to better relations.

Beyond Singapore’s domestic need, additional water supply can be made available to service its international customers (ships, airports, aircraft and resorts). But this should be on a different basis.

Malaysia can, for example, consider allocating a specified volume of water and charging a true market price for Singapore’s international clientele. In this regard, there may be room for a joint venture whose profits can be shared equitably.

For the benefit of all concerned, it is relevant to recall that, in the past, water, Keretapi Tanah Melayu land and a new bridge to replace the Causeway were discussed as a package.

Abdullah in his wisdom realised this "package" approach brought no progress and, therefore, discarded it. He recognised that mixing of commercial and sovereignty issues would only create muddle and lead to endless bickering.

Singapore’s request for overflight rights for its air force into Malaysian air space has never been an outstanding matter. This is simply because it is a sovereignty issue and, therefore, it is non-negotiable.

No country in the world, including members of the European Union and even those in Nato, gives away sovereignty.

Both prime ministers must be commended for their focus on bridges of friendship through mutually-beneficial commercial undertakings and building economic stakes in each other.

However, overemphasis on private sector initiatives, especially as back channels in diplomacy, can backfire because relations between nations are more than the dictates of profit and private commercial interests.

Both leaders have made a good start by agreeing to co-operate on the Iskandar Development Region (IDR), where strengths and expertise can be brought to bear for mutual prosperity. Singapore’s experience in the development of Shenzen (China) and the Shin Corp deal (Thailand) are sobering reminders of what needs to be avoided.

But there is much more to be done. The formation of a special ministerial committee to focus on co-operation in Iskandar is a welcome step.

Development in Iskandar should not be conceived as a clone of Singapore or a Singaporean enclave in Johor. Rather, it should represent the best that both countries can offer in terms of value-adding activities, human capital development and concern for the environment.

In that way, Iskandar, as a growth area, can be an inspiration for other countries in Asean.

Singapore and Malaysia should be working together, especially in bringing Asean to the next stage of economic integration. For one thing, in drafting the proposed charter, the new members should not be allowed to dictate to the original Asean-6. After all, the charter is for the next 40 years, at the very least.

The charter should also be a catalyst for beginning in earnest the process of setting up a system of region-wide economic governance to take Asean to the next stage of economic integration.

It should include pooling some aspects of sovereignty on trade and trade-related matters, converting all existing and future agreements on economic matters to become national laws in each member state and, finally, establishing a Trade and Commercial Dispute Settlement Court comprising judges from member states.

Both leaders can engage in serious and genuine negotiations and put past stresses and strains behind us.

For Singapore-Malaysia relations to succeed, it depends not only on what governments may initiate, but also the degree to which peoples in both countries are prepared to co-operate and support.

Datuk Deva M. Ridzam is a former ambassador to the European Union, Belgium and Luxembourg (2000-2005) and to Cambodia (1991-1996)