Tuesday 26 June 2018

Review Malaysia-Singapore Water Agreement

Why become Beggar when born as a King?

The second cheapest selling rate of water sold between government is USD5.80/1000 gallon (Rm23.22) treated water which is Guangdong to Hong Kong, even though both are part of China sovereign. Same country normally sell cheaper which make Malaysia Singapore relationship not normal. 
Malaysia is selling at a rate of Rm0.03/1000gallon (raw water). Singapore claimed cost of water treatment is Rm2.40/1000gallon. even so it would round up to Rm2.43/1000gallon.
Singapore is selling in Singapore at S$2.74/cubic meter(S$12.33/1000gallon=Rm36.99/1000gallon) for the first 40m3 and above 40m3 at S$3.69/cubic meter(S$16.60/1000gallon=Rm49.80/1000gallon).

Ok, just assumed everyone consumed less than 40m3/month in Singapore. Rm36.99 is still 15.2 times higher than the cost.


Singapore Water Tariff -2018

If Malaysia would to employed Singaporean to treat the water and sell it at the second cheapest rate like China water, Rm23.22/1000gallon to Singapore. Singapore still make a profit of of RM13.77 for supplying water at the same rate. Is Singapore profiteering?. so is Malaysia indirectly subsidizing Singapore then?

Why on earth Malaysia would sell at absurdly cheap rate of Rm0.03 while let Singapore PUB employee(paid in sing dollar)to treat water and sell it to Malaysia as if it is Singapore subsidizing Malaysia?

Even so, it is based on Singapore treatment cost. Malaysia have equal well qualified professionals to do the water treatment at much lower rate at Rm0.60 -Rm 1/1000gallon. RM0.03 Raw water + RM1 Treatment Cost =RM1.03 Treated Water. If we sell it same rate with China sell to Hong Kong then it would be (RM23.22/RM1.03=22.54 times) 22.5 times. also equivalent to 35.9 times of Singapore Water Tariff for first 40 cu m and 51.29 times of RM49.8 for above 40 cu m. 

How true Singapore claimed subsidizing Malaysia is that the water treatment cost RM 2.40/1000 gallons and sell back to Malaysia at RM 0.50/ 1000 gallons thus absorbing RM1.90/ 1000 gallons when Malaysia is selling at subsidiary rate of (China treated water price RM23.22- Singapore Treatment Cost RM2.40 = Malaysia suppose raw water rate RM20.82) RM 20.82 every 1000 gallons of water(if would to take Hong Kong as example)?

Therefore, Singapore claiming subsidizing Malaysia by taking advantage of our stupid cheap raw water rate is only true by judging the facts that the erectile-dysfunction-like state of Johore's water treatment plant coupled with the ever polluted river as a result of uncivilized population, is also factor contributing to the shame. Appeared-to-be-retarded Johore government official also taking granted of Singapore extra treatment capacity (ready at anytime to sell) without realizing true cost of water and water security in the future. 

SAJ- Johore's Water Tariff
Singapore said the water Malaysia selling is free falling from the sky then should Malaysia ask Singapore how much Singapore pay for its land? Basically, the notion of sovereignty is drawing boundary to which natural resources belong to a nation. It is of course free from God. Nature don't charge money, it is human who invented money as a medium to give value. The only cost for natural resources is the sovereign protection cost (defence sovereignty). Others cost beyond the natural resources cost are cost for extraction and the process beyond is already in value adding section. Thus land (including gold, silver, copper, tin, bauxite, jade, diamonds, sapphire, woods,& others minerals, and cultural artifacts), water (e.g. fish& water), sky and everything within the sovereign have a value. This is not very difficult to understand, isn't it?

What giving Singapore more advantage is the rolling on down hill Ringgit. Malaysia Ringgit used to be higher than Singapore dollars in the early 70's but going down in tandem with the level of civilization now. This make the RM0.03/1000 gallons even cheaper.  Easily predicted to be going even more cheaper as it move toward the end of 2061. 


Only if Malaysia able to come clean (free of corruption ) and crystal clear (non-communal based policy, equality for all races) then only Malaysia's tap water is also colorless and odorless. 

Malaysia can treat water with cheaper rate of Rm0.60/1000gallon and don't need to look like a beggar. of course, eventually the cost will increase but that imply Malaysia income will go in tandem to afford the tariff, if we truly achieve equality (meritocracy).


We should ask will Singapore enjoy such a cheap water cost if the treatment plant is in Singapore(known for world most expensive land)?

Why Malaysia is not able to treat our own water and water that sell to Singapore? This is the reason why in my suggestion to North South Korea Unification, I deliberately suggest to process natural resources extract from North Korea to be process into at least raw materials for secondary industry. 

Is the contract allow for revision? Yes, the Water Agreement originally designed to allow for price revision after 25 years. and for such a long contract variation is not uncommon, as long as both party mutually agree then it will continue be legally binding.

Scenario without factor currency exchange 


I wonder whether Malaysia government official ever done any calculation before signing the deal. 1961&1962 might have excuse as they might not see it coming but Johore State Government shall not omit the 25 years review provision under the contract. It show how shallow minded and narrow minded they are. unequivocally the denialism culture is plaguing the Malaysian society and the cause (cost & suffering) is deadly to themselves.  

source: tradingeconomics.com (Singapore Dollars Vs USD& Malaysia Ringgit Vs USD)

Provided that the currency is Ringgit denomination instead of the more common international trading currency of US Dollars. I believe it would have been at least 40% more if would to use US dollar.

Chronicles of Water Agreement

02 Oct 1961 - Tebrau and Scudai Rivers Water Agreement signed between city council of the state of Singapore and Johore state government. 

  • Full& exclusive right to suck water from designated area at Gunung Pulai, Sungei Tebrau& Sungei Scudai for 50years up till 2011, at land rental rate of RM5/ acre and RM0.03/1,000 gallons of raw water. 
  • Singapore in turn supply minimum 4 million gallons (18,184 cu m) or 12% of the total amount of raw water it drew out from Johore daily at RM0.50/ 1000gallons or whichever amount of treated water more than 12% of raw water it drew from Johore.

29 Sep 62 - Johor River Water Agreement between City Council state of Singapoore and Johore State Government.
  • Valid for 99 years till 2061
  • Singapore have right to suck 250 million gallons/ day (1.14million cu m) from Johore river.
  • Johore get treated water amounting to 2% of the total water Singapore suck from it daily. e.g. if Singapore suck 250 million gallons today they need to supply 5 million gallon treated water. 
  • Singapore pay rent for the land it used at the standard rate applicable to the building lots on town land. 
  • Singapore buy raw water at previous price i.e. RM0.03/ 1000 gallons  and sell treated water at RM0.50/1000 gallons to Johor. 
  • After Malaysia stopped using common currency in 1973, price denominated in Malaysia Ringgit. 
  • Agreement provided the review of prices every 25 years with arbitration if fail to negotiate and agree on prices. however, Johor state government chose not to revise in 1986 and 1987.

09 Aug 1965 - Independence of Singapore Agreement signed between Government of Singapore and Malaysia to guaranteed the 1961& 1962 water agreements. 

28 Jun 88 - Memorandum of Understanding (MOU) signed between Mahathir Mohamad (Malaysia PM) and Lee Kuan Yew (Singapore PM) to conclude the 6 years negotiations.

24 Nov 90 - Public Utilities Board (PUB) of Singapore signed agreement with Johore State Government as supplementary to the 1962 pact. 
  • Johore set aside 21,600 ha (216 sq km) of land for Singapore to construct a dam across Sungei Linggiu which Singapore paid RM320 million as compensation for the permenent loss of the use of land. Maintenance cost is borne by Singapore.
  • Singapore allowed to draw more than 250mgd of raw water from Johore River (More than what agreed under 1962 agreement). 
  • Water drawn from this dam price at 115% of average water tariff of Johor or Average water tariff of Johore + 50% of surplus from (Johor Water Tarrif - PUB cost of distribution), whichever is higher.
24 may 2010- After the retreat camp Malaysia PM Najib and Singapore PM Lee Hsien Loong in Singapore, they decided the Point of Agreement 1990 has reached agreement. 

Future Water Supply Prognostication 


Malaysian don't prepare for future. So myopia that unable to foresee the fate of Johore's water security is more and more depending on Singapore. By looking at the current situation, it seems that the more polluted the water the more Malaysia benefit from the lower water treatment cost from Singapore but when the water agreement end in year 2061...if Singapore successfully achieve fully water self-sufficient by then and Johore still unable to treat own water independently then the cost of treatment Johore will be go up tremendously (due to pollution in the river) then Johore will suffer. Either still depend on Singapore at Singapore discretion to price the water treatment after 20
61 or die standing. 

2016 July 16, Badan Kawalselia Air Johor (Bakaj, a water regulatory of the state) shamelessly made an urgent request to PUB of Singapore to supply additional six (6)million gallons of water daily on top of the existing 16 million gallons per day to Johore. Reason being is poor governance that result rampant river pollution. High ammonia content in the river as a result of effluents discharge from palm mills. 600,000 users in the southern Johore is affected. I believe the financial loss suffer by the 600,000 users is more than the cost of proper waste treatment of the oil palm. 

No ideal how much penalty is imposed to the palm oil mills and how much is compensation is paid to loss and damages suffer by those users. I doubt there's any penalty imposed or the penalty is not even any figure near the cost of proper waste disposal. Bribery is an easy way out and if penalty is nothing near to what should comply the law then the incident will repeat to maximize profitability. 

Fragmented and overlapping function of Malaysia regulatory agencies in water management is an obviously evident the government fail to recognize the hydrology cycle as a whole. worst, RESPONSIBILITY is absent in the dictionary of tai chi master in those agencies. 

It will be a costly affair for Malaysia in the future especially integrity in the water industry is low. MACC need to step in, clear corrupted bugs and slowly gain control of water treatment. How to make own national car if can't even treat own water?

Singapore on another hand able to be fully water self-sufficient before 2061 but with a little initial cost in the infrastructure. I sure hope to see Singapore be water self-sufficient and confident Singapore can do it. Only matter is how to do it cheaply.


Singapore overall water demand is going up despite expected to reduce water consumption per capital per day from 152 to 140 in 2061. 

The Scrapped Malaysia Singapore Crooked Bridge.















To avoid the water price to be revise the Singapore use the tactic of publishing booklet like this ;

 ..

It is a matter how strong Malaysia representative mind is. If their mind is weak, brain is blank and eyes is too blind to see bigger picture then...

Reference

https://www.channelnewsasia.com/news/singapore/mahathir-water-malaysia-singapore-deal-too-costly-renegotiate-10466390

http://eresources.nlb.gov.sg/infopedia/articles/SIP_1533_2009-06-23.html

https://www.thestar.com.my/news/nation/2016/07/18/johor-makes-urgent-request-for-additional-treated-water-from-singapore/

https://www.pub.gov.sg/Documents/WaterPriceRevisionsBrochure.pdf

http://pubs.rsc.org/en/Content/ArticleHtml/2015/EW/c5ew00056d





Saturday 9 June 2018

Proposal for North South Korea Unification

Proposal for North South Korea Unification.

This is in respond to the coming Trump-Kim Summit in Singapore 12 June 2018, I've commented on my own Facebook which later ignited the idea for this proposal. Although the peace talk is mean to officially end the war  and lifted the sanction on North Korea but that also signify the beginning of reunification which what I think South and North Korea should have been looking at for decades ago.

The two extreme polarized political system will take some time for the reunification to be fully mature but giving the facts that culture similarity and great homogeneity of the two country, reunification have a very good prospect and probability . Same language and ancestral heritage is very advantage for the two to unite, what more the two complement each other where one have young energetic population and rich natural resource another have highly advanced technology and financial strength, they are perfect match to produce a United Korea that will the next economy powerhouse in the world.

My proposal


Tabulation of Visa Requirement for North South Korea.



Comment from my Facebook that ignite the idea for the proposal.