POA SETTLEMENT OPENS NEW CHAPTER IN SINGAPORE-MALAYSIA TIES

SINGAPORE, March 4 (Bernama) -- Malaysia and Singapore are set to open a new chapter in their bilateral relationships with the settlement of the Points of Agreement (POA), said Singapore's Foreign Minister George Yeo.

"With the POA settlement, a new chapter opens in our bilateral relationship with Malaysia. We can look forward to more cooperation in different areas bringing economic and other benefits to Malaysians and Singaporeans," he said in his reply to a supplementary question in Parliament during the Committee of Supply (CoS) debate here Thursday.

"Our relations with Malaysia saw a breakthrough last year.

"Through the joint statements of May 24 and Sept 20, 2010, and the exchange of letters in September 2010, the two Prime Ministers (Lee Hsien Loong and his Malaysian counterpart Najib Razak) agreed on the implementation of the POA which had been outstanding for almost 20 years," he said.

On July 1 this year, Yeo said, Keretapi Tanah Melayu Berhad would vacate the Tanjong Pagar Railway Station and relocate its operations to the Woodlands Train Checkpoint.

"This is a firm deadline," Yeo said when asked about the state of its relations with Malaysia, in particular, the progress of the POA and cooperation on the development of Iskandar Malaysia.

He said a schedule of implementation had been drawn up and work on some aspects of the implementation had already started.

Several developments along the main railway line including the
redevelopment of Silat Estate and the expansion of One North business park at Buona Vista would begin after July 1, he said.

"The only outstanding issue in the POA is the development charge issue. Both sides hold different views on whether the development charge is payable on the three original POA parcels in Tanjong Pagar, Kranji and Woodlands.

"We have agreed to treat this issue separately from the implementation of the POA and refer it to arbitration under the auspices of the Permanent Court of Arbitration," Yeo explained.

In this way, he said, the development charge issue would not hold up the implementation of the POA.

"But it is not appropriate for me to comment on our chances, because the matter is before arbitration," he said.

Other initiatives agreed between both sides in the Joint Statement of May 24, 2010 include the joint development of a rapid transit system link between Johor Bahru, capital of southern state of Johor, and Singapore as well as Singapore's handing over waterworks under the 1961 Water Agreement to the Johor authorities free of charge and in good working order on Aug 31, this year.

In addition, Yeo said, Khazanah and Temasek would set up a 50-50 joint venture company to undertake the development of an iconic project in Iskandar Malaysia.

He said Khazanah and Temasek were looking to launch this project in May 2011, and the details of the project were matters to be resolved between them.