The full page ad in the Asian Wall Street Journal was headlined: "WATER: The Singapore-Malaysia Dispute; THE FACTS", and followed similar weekend action in the four major Kuala Lumpur daily newspapers.

The ad claimed Singapore made a profit of US$174.34 million from Malaysian-supplied raw water in 2001, while Kuala Lumpur was paid just $629,000 under the deal.

"It is time to set the record straight. Malaysia gets nothing. Singapore gets rich," the ad, from Malaysia's National Economic Action Council said.

The ad also claimed the Singapore government had "tarnished" the name of Malaysia around the world.

Singapore and Malaysia are locked in a long-running dispute over the price that the former pays for the supply of raw water from its neighbour, which supplies half its daily needs.

Malaysia sells the water to resource-scarce Singapore at three Malaysian sen (less than one cent) per 1000 gallons (4550 litres), under the terms of decades-old agreements. Kuala Lumpur wants a price increase.

Kuala Lumpur decided to halt talks on the issue last year after it failed to secure a price hike, and said it was considering taking legal action against Singapore.

The row intensified recently when Singapore launched the publication of a booklet that contained copies of letters exchanged by national leaders over the controversial issue, provoking a sharp response from Malaysian Prime Minister Mahathir Mohamad.

The NEAC has said it will publish a booklet outlining the Malaysian version of the squabble to counter the Singapore publication.

Water has been a key irritant in bilateral relations since Singapore left the Malaysian Federation and gained independence in 1965.

Other disputes include a proposed new bridge linking the countries, use of Malaysian airspace by Singaporean aircraft, the location of Malaysia's customs, immigration and quarantine facilities in Singapore and ownership of a rocky islet claimed by both countries.
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