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Malaysia to propose new water tariff to Singapore

Foreign minister 'hopeful' on agreement over South China Sea

A man swims in a pool inside a condominium in Singapore. The proposed change to the 1962 water agreement has been a point of contention between Malaysia and Singapore.   © Reuters

PUTRAJAYA -- Malaysia will submit a revised price for raw water sales to Singapore, as Prime Minister Mahathir Mohamad's government pushes ahead with its effort to change the terms of a half-century-long agreement between the neighbors.

The proposed change to the 1962 Johore River Water Agreement has been a point of contention between Malaysia and Singapore, due to differing interpretations of the price-revision period in the pact. Singaporean Prime Minister Lee Hsien Loong and Mahathir have agreed to submit the dispute to arbitration if discussions reach an impasse.

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