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International relations

Singapore vexed by water dilemma as Malaysia seeks price hike

Leaders fail to bridge gap while Hyflux drowns in debt

A water fountain near Marina Bay in Singapore. Under a 1962 agreement, the city-state draws water from Malaysia's Johore River at less than a penny per 1,000 gallons.   © Reuters

SINGAPORE -- Singapore is stuck in a dilemma over its water supply as neighbor Malaysia demands higher prices while local water treatment company Hyflux faces liquidation.

Singaporean Prime Minister Lee Hsien Loong and Malaysian counterpart Mahathir Mohamad discussed the water issue at a summit outside Kuala Lumpur Tuesday.

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