Joint communique of the Singapore and Malaysian governments

IN a warm and friendly atmosphere, the prime ministers of Malaysia and Singapore met in Kuala Lumpur on 16th February 1998 and had productive discussions on a wide range of bilateral, regional and international issues.

The two prime ministers agreed they would work towards realising the full potential in the relations between the two countries, based upon the principle of "prosper thy neighbour". This is in recognition of the unique and special relationship between Malaysia and Singapore. The two prime ministers also recognised that the regional financial crisis has further underscored the need for both countries to cooperate closely in all possible areas. In this spirit of goodwill and understanding, both leaders have threfore decided that Malaysia and Singapore would cooperate for mutual benefit, particularly in the following areas:

1.Economic and financial cooperation

Malaysia welcomes investments from Singapore. The Singapore government, with full confidence in Malaysia's economic prospects, will encourage its private sector to invest in Malaysia. Likewise, Singapore welcomes investments from Malaysia. In this respect, the two prime ministers highlighted the value of cross-holdings in infrastructure and other economic sectors to make both countries stakeholders in each other's prosperity and long-term economic future.

The two prime ministers agreed that Malaysia and SIngapore would cooperate with one another and their ASEAN partners to restore stability to regional currencies. Both governments will intensify efforts to cooperate in areas of banking and finance. Officials of both countries will study the proposal of using regional currencies and other options to finance intra-Asean trade.

2.Supply of water to Singapore

The government of Malaysia agreed to continue the supply of water to Singapore beyond the expiry of the 1961 Agreement in 2011, and the 1962 Agreement in 2061, as well as the 1990 Agreement connected with it, on terms and conditions to be mutually agreed between the two governments. This undertaking will be confirmed in an agreement within 60 days.

3.Malayan Railway Land in Singapore

Both governments agreed to intensify efforts to resolve outstanding matters relating to the Points of Agreement on Malayan Railway Land in Singapore.

4.Pulau Batu Putih/Pedra Branca

Both governments directed their officials to resume negotiations, within 60 days, with a view to finalising the Special Agreement to refer the issue to the International Court of Justice.

5.Tourism Cooperation

Both governments agreed to intensify bilateral cooperation in the area of tourism, including manpower training.

6.Malaysia-Singapore Business Council

Both governments welcomed the establishment of the Malaysia-Singapore Business Council by the private sector to enhance trade and investment between the two countries and to strengthen economic and business synergies amongst their respective business entities.

The agreements reached between the two prime ministers have laid a firm foundation for both Malaysia and Singapore to cooperate closely in the new millenium.