‘Win-win’ – but who’s the real winner?

Anwar and Wong in standard cordial leaders pose at the latest retreat in Singapore. -- Bernama

AT the Singapore-Malaysia Annual Leaders’ Retreat (ALR) early this month, host Prime Minister Lawrence Wong recalled what his counterpart, Datuk Seri Anwar Ibrahim, said during one of their previous meetings.

Looking at Anwar who was standing next to him at the joint press conference, Wong said: “Prime Minister Anwar said that Malaysia and Singapore should be role models for the rest of the world on how good neighbours should work together.

“I am fully committed to upholding that same vision, and I look forward to working closely together with him and his team to further strengthen our partnership and uplift the citizens of both our countries.”

This year, Malaysia and Singapore mark 60 years of diplomatic ties. That is a long time. But it has not always been smooth sailing, and of course there were setbacks, especially when leaders collided in defending their own national interests. So there are scars of course, but with the changing of the guard, a gentler relationship came into being.

The first ALR was held in 2007 when then prime ministers Tun Abdullah Ahmad Badawi hosted Lee Hsien Loong in Langkawi. That was the start of a stronger bilateral and economic partnership between the two countries. Since then, various projects and activities have taken off and, of course, Singapore’s nearest neighbouring state, Johor, is getting quite a substantial chunk of investment, especially in the Johor-Singapore Special Economic Zone (JS-SEZ).

In a joint statement issued after this 12th retreat, both countries remain each other’s second largest trading partners: From January to October 2025, bilateral trade amounted to US$78.70bil (RM322.9bil).

The leaders also welcomed the establishment of Singapore’s JS-SEZ Project Office and Malay-sia’s Invest Malaysia Facilitation Centre-Johor (IMFC-J), which have worked hand-in-hand to support businesses in their expansion into the JS-SEZ. As of October, Singapore-based businesses have committed over S$5.5bil (RM17.97bil) in investments in the JS-SEZ.

Singapore is also working with Sarawak Energy Berhad to import low-carbon electricity from the Bornean territory.

“I was in Singapore together with the Prime Minister, and we are going to supply one gigawatt of energy to Singapore. It is not only energy that we are supplying but green energy,” Sarawak Premier Tan Sri Abang Johari Tun Openg was quoted as saying recently.

It seems to always be all about business when dealing with Singapore, so much so that long outstanding bilateral issues seem to be taking a back seat.

At the conclusion of every leaders’ retreat, a joint statement is issued detailing the progress of various initiatives in everything from the economy and the environment to connectivity. But what about progress on issues that have been on the negotiating table for some time, like the price of water Malaysia supplies to Singapore and maritime boundaries -- are they really moving forward?

During the 10th ALR in 2023, both countries agreed to resume discussions on raw and treated water prices without prejudice against their long-declared positions on the right to review the prices under the 1962 Water Agreement. At this 12th ALR, the leaders encouraged continued discussions on the way forward on the same issue.

Anwar said that while these issues are complex, “there is no hostility” between the two countries in addressing them.

“There are differences, of course, but there is no hostility. Neither side will take actions to frustrate the movement of people or goods,” he said.

At the same press conference, Wong, in addressing outstanding bilateral issues, made it clear that water supply is not a pressing problem.

“Because we have had good rainfall in recent years, so no pressing, immediate issue. But we know that demand is growing, demand in Johor for water is growing with the industries and the investments that it is attracting.

“In light of those longer-term considerations, the officials on both sides have been meeting to see if there are possibilities for collaboration, especially to do more new infrastructure that will strengthen the resilience of water supply with benefits for both Johor and Singapore under our 1962 Water Agreement.”

For the record, under the 1962 agreement, Singapore is allowed to draw 250 million gallons of raw water per day at three sen per 1,000 gallons and, in return, Malaysia is entitled to buy back the treated water at 50 sen per 1,000 gallons.

“Not a pressing issue” means making any decisions will be a long-drawn out process since the agreement will only expire in 2061. Does that mean any negotiation on the price of water is off the table for now since the talk currently is on infrastructure?

“Singapore only talks about the spirit of neighbourliness when they want something from Malaysia.

“They do not really believe in or pursue a win-win solution with Malaysia. As much as they can, they will want to maximise to their advantage. It’s a zero-sum game for them when it comes to Malaysia,” said a Malaysian official.

Looking at the current trend in managing ties and Singapore’s growing interest in doing business with other states in Malaysia, it is always necessary to be careful and cautious when considering proposals from our friendly neighbour.

Call it an obsession if you like. Singapore keeps track of what is happening and Malaysia-related issues get extensive coverage in their media, often in a negative light.

One thing Malaysia can learn from our neighbour down south is how efficient Singaporean officials are in conducting their work.

Team Singapore is very tight, disciplined, and consistent about how their officials should engage with Malaysia. Everything must go through their Foreign Affairs Ministry -- that is the only line of communication for the government.

Can the same be said about how Malaysia, at federal and state-level, operates? The change of governments in Malaysia since 2018 has probably rendered our way of doing things differently now.

There is genuine concern that not many of us realise the consequences of what we may agree to now with Singapore and their potential effects in the future. As they say, read the fine print.

It feels great to be wooed by interested parties but national interest and sovereignty must always come first.

This mantra of “win-win for both parties” has been repeated often but who is the win for actually?