M'SIA, S'PORE AGREE TO FINALISE LAND SWAP DECISION BY SEPT

PUTRAJAYA, June 22 (Bernama) -- Malaysia and Singapore agreed to finalise
the land swap decision within three months from Tuesday.

This was announced in a joint statement by Prime Minister Najib Razak and
his Singapore counterpart Lee Hsien Loong after a delegation meeting at the
Prime Minister's office here.

"Prime Minister Lee came with a specific proposal on the land swap offer to
be considered by Malaysia.

"I wish to thank him for the offer and I conveyed to him our position that
we would look into it in great detail, and we both agreed that the land swap
decision should be finalised within three months from today.

"I look forward to going down to Singapore within that period and for the
final resolution on the POA (Points of Agreement)," said Najib at a joint press
conference.

Earlier, Najib held a 45-minute four-eye meeting with Lee. The Singapore
prime minister is in Malaysia for a one-day visit.

Lee met Najib Tuesday and made his government's official offer to the
Malaysian government for a swap deal involving Keretapi Tanah Melayu Berhad
(KTMB) land in Singapore.

"Both leaders had a productive meeting on the land swap offer and discussed
some initial responses," said the joint statement.

"Both leaders agreed to study the matter further and to meet again in three
months' time after Hari Raya Aidilfitri (Eid fitri) to finalise the land swap
decision," it added.

Last month, the two countries agreed to relocate to Woodlands the
78-year-old Tanjong Pagar railway station operated by KTMB.

During the leaders' retreat last month, both countries decided to jointly
develop KTMB land in Singapore to maximise its full potential.

Both leaders agreed that a Malaysia-Singapore joint company, known as M-S
Pte Ltd, be established before Dec 31 this year to develop the land vacated by
KTMB.

The company will be set up by Malaysia's Khazanah Nasional Berhad and the
Singapore government's investment arm, Temasek Holdings Limited, with each
holding 60 per cent and 40 per cent equity respectively.

KTMB land in Tanjong Pagar, Kranji and Woodlands and three additional
pieces of land in Bukit Timah, totalling 271 hectares, will be vested in the
company for joint development.

The developed KTMB land could in turn be swapped, on the basis of equivalent
value of pieces of land in Marina South and Ophir Rochor in Singapore.

Najib said Malaysia would first study the proposal before making a final
decision in three months' time.

Najib said he and Lee agreed that Malaysia and Singapore should move forward
with a resolution on the POA, which had been a long outstanding issue between
the two countries.

"The spirit of our discussion today was very warm, very positive and I thank
Prime Minister Lee for being as flexible as possible with the intention that
there will be a final resolution on the POA," he added.

Earlier, Lee said he had asked his Minister for National Development, Mah
Bow Tan, to convey the land swap offer proposal to the Malaysian government.

He described the final resolution to the POA signed in 1990 as a major
decision for Malaysia.

"I had a useful exchange with the prime minister (Najib) today on some
preliminary perspectives and views. But this is a major decision, so Malaysia
will think it over further and Singapore will consider the comments made by
Malaysia.

"The overall concept is to swap the three plus three pieces of KTM land with
parcels of land in Marina South and Ophir Rochor of equivalent value.

"So, I have a proposal, laying out several variations for the prime minister
(Najib) to choose from," he said.

Asked whether other issues were discussed, Lee said: "We will consider in
due course."
-- BERNAMA