1. The proposed construction of a new bridge to replace the Johor Causeway has created a lot of controversy and media coverage on the issue continues to attract public attention.

2. As the coordinating Agency, the Ministry of Foreign Affairs has been directly involved in the bilateral negotiations with Singapore on the bridge proposal. I wish to clarify some of the major issues including the chronological events surrounding the bridge proposal so as to put them in the proper perspective.

3. In addressing the issue, I wish to highlight in particular the confusion pertaining to the proposal for a full straight bridge and the alternative proposal for a scenic half bridge (termed crooked by the media) and the scenic full bridge; the political and legal dimensions pertaining to the proposed unilateral construction of a scenic half bridge by Malaysia including Singapore’s position; the bilateral negotiations involving sand and airspace as trade-offs and the Malaysian Government’s decision not to finally proceed with any bridge proposal.

4. To begin with, the idea of building a bridge to replace the Johor Causeway was first announced by the Government during the launching of the Johor Baru Waterfront City by Tun Dr Mahathir Mohamad, then Prime Minister of Malaysia on 5 July 1996. It was clear that the bridge that Malaysia had in mind then was a full straight bridge.

5. Malaysia had originally treated the proposed bridge issue as outside the four package of outstanding bilateral issues namely water, Points of Agreement (POA), Central Provident Fund (CPF) and airspace as agreed upon between Tun Mahathir and the then Prime Minister Goh Chok Tong of Singapore on 17 December 1998 in Hanoi. The course of events, however, made it difficult for the bridge issue to be discussed separately from the other outstanding issues in the package.

6. Bilateral negotiations through the exchange of letters, Four-Eyed Meetings between YABhg. Tun as Prime Minister and Senior Minister Lee Kuan Yew and Meetings at Senior Officials and Ministerial level during the period of March 1999 to September 2002 failed to reach agreement on various technical aspects of the bridge proposal as well as other issues within the package.

7. YABhg. Tun then wrote to Senior Minister Lee Kuan Yew on 4 March 2002 on the package of issues covering water, bridge and rail including water pipelines, Customs, Immigration and Quarantine (CIQ), CPF and air space. The Government’s proposal on the road bridge, railway bridge and water pipelines issues are as follows:

> A new bridge will be built to replace the Causeway. Malaysia will build the bridge on the Malaysian side at its own cost while Singapore will build the bridge on the Singapore side at its own cost. The bridge will connect at the common boundary in the Straits of Johore. Once the bridge is completed, the Causeway will be demolished. Should Singapore decide not to build the bridge on its side, Malaysia intends to build the bridge on the Singapore side at its own cost. The new bridge will join the remaining Causeway on Singapore’s side. Once the bridge is completed, the Causeway on the Malaysian side will be demolished.

> Malaysia will build a new railway bridge across the Johore Straits. This railway bridge will include a railway swing bridge on the part of the Johore Straits that will be deepened for navigational purposes. Should Singapore decide not to build the bridge to replace the Causeway on its side, Malaysia will build a railway on its side in the Johore Straits. This railway bridge will include a railway swing bridge on the part of the Johore Straits that will be deepened for navigational purposes. The new railway bridge will join existing railway track on the remaining Causeway on Singaporeís side.

> New water pipelines on the Malaysian side will be installed by Malaysia and will reconnect with the Singapore water pipelines under the new bridge. Should Singapore decide not to build the bridge to replace the Causeway on its side, the new water pipelines on the part of the Johore Straits that will be deepened for navigational purposes will be buried under the seabed and will reconnect with the Singapore water pipelines.

8. On 11 April 2002, the then Singapore Prime Minister Goh Chok Tong conveyed Singapore’s response vide a letter to YABhg. Tun on the outstanding issues covering bridge, railway, water, CPF and air space. On the bridge issue, Singapore’s position was as follows:

"Between a new bridge to replace the entire Causeway, and one to replace just the Malaysian side of the Causeway. I like the former better. Once the new bridge is completed, the Causeway can be knocked down, which I prefer to be done after 2007. But if you wish to proceed immediately to replace just your side of the Causeway with a bridge, I shall accept it, though I think this is not ideal."

9. Two Ministerial Meetings were held in July and September 2002 to further discuss the outstanding issues within the package. As no agreement was reached, YBhg. Tun wrote to the then Prime Minister Goh Chok Tong on 7 October 2002 inter alia as follows:- "As you are aware, since our above decision, several meetings both at Ministerial and officials levels, had been held on the package of issues. Regrettably, three rounds of talks at the senior officials level in 1999 and two Ministerial-level Meetings in 2002 did not meet with any success. In addition Senior Minister Mr Lee Kuan Yew also had several sessions with me discussing the same package but no agreement could be reached. I think we have now come to a point where it would be important for us to prioritise our discussions. The approach that both sides had adopted so far in dealing with the outstanding issues in a package, has not yielded any meaningful results. In view of this, Malaysia has now decided to discontinue the package approach and to give the highest priority to first resolving the long-delayed water issue, particularly the price review of raw water. Once this issue is satisfactorily and amicably resolved, I am confident that Malaysia and Singapore would be able to move forward much faster in finding solutions to the other outstanding issues that stand in the way of our bilateral relations."

10. Singapore’s reaction was reflected in the then Prime Minister Goh Chok Tong’s letter to YABhg. Tun on 14 October 2002 when he decided to withdraw the concession that he said Singapore was prepared to make as trade-offs involving the bridge and other issues under the package. Singapore later further explained in a Diplomatic Note dated 29 November 2004 that the agreement given by the then Singapore Prime Minister "was made in the context of the then ongoing negotiations between the two Governments as an overall package of bilateral issues. With the termination of the package negotiations the underlying basis for the statements in the letter of 11 April 2002 no longer exists".

11. A legalistic approach was taken by Singapore when Malaysia decided to proceed with the Customs, Immigration and Quarantine (CIQ) Complex at Bukit Chagar and the unilateral construction of the scenic half bridge and new railway bridge projects on the Malaysian side of the Johore Causeway after giving the necessary contracts to Gerbang Perdana Sdn Bhd in 2003. In its Diplomatic Note dated 25 October 2003 Singapore referred to the Order of 8 October 2003 International Tribunal On the Law of the Sea (ITLOS) in the case concerning Land Reclamation by Singapore in and around the Straits of Johore and contended that Malaysia had made a unilateral decision in announcing the proposed construction of the scenic half bridge. It maintained that international facilities such as the Causeway cannot be demolished without its approval, agreement and involvement of both states and there should be mutual cooperation and consultation on the management of the Johore Straits.

12. Singapore’s position on Malaysia’s CIQ complex and the scenic half bridge and new railway projects was finally reflected in its decision with regard to the relocation of Singapore Public Utilities Board (PUB) water pipelines. It effectively invoked PUB’s ownership of the water pipelines as provided for under the 1961 and 1962 Johore- Singapore Water Agreements that was subsequently guaranteed under the 1965 Separation Agreement between Malaysia and Singapore.

13. In giving its legal opinion, the Attorney General’s Chambers confirmed the above interpretation with respect to PUB’s ownership of the water pipelines under the 1961 and 1962 Johore-Singapore Water Agreements and "that Malaysia is required to obtain prior approval of PUB in relation to the alteration of the water pipelines necessitated by the construction of a bridge, whether it is a full straight bridge or a scenic bridge (half bridge)".

14. Taking advantage of the above Agreements, Singapore made a clear distinction between the relocation of PUB water pipelines on mainland Johore and the relocation of PUB water pipelines along the Malaysian part of the Johore Causeway in relation to the construction of the scenic half bridge. In a Note dated 29 November 2004 Singapore maintained that in facilitating its relocation of the water pipelines on Johore mainland, it was prepared to decouple construction of the new CIQ complex from the proposal to build a new bridge and treat the two projects as severable from each other. In other words, approval for the relocation of the water pipelines on mainland Johore was given by Singapore only upon obtaining Malaysia’s clarifications that the relocation of the PUB water pipelines was solely for the construction of the new CIQ complex. The relocation of the PUB water pipelines along the Malaysian part of the Johore Causeway in relation to the unilateral construction of the scenic half bridge however would be treated as a different issue altogether.

15. After taking over the Prime Ministership on 30 October 2003, YAB Dato Seri Abdullah Ahmad Badawi visited Singapore on 12 January 2004. The bridge issue was not specifically discussed but YAB the Prime Minister urged both sides to tackle the issues that are easier to resolve first. He explained the approach by using the metaphor of "plucking the ripe fruit first" whereby both sides should pluck the low hanging fruit first, and then move on to the higher ones on the tree. He subsequently urged both sides to explore new approaches and, "to think out of the box" in order to avoid the previous deadlock that besieged their bilateral negotiations.

16. YAB Dato’ Seri Prime Minister’s above visit paved the way for an improved political climate of cooperation with both sides expressing the desire to amicably resolve the outstanding issues. It was in this context that related works pertaining to the scenic bridge and the railway bridge were suspended on 5 February 2004.

17. During the visit of Singapore’s Prime Minister Lee Hsien Loong to Malaysia on 4 and 5 October 2004, both sides agreed to revisit the full straight bridge proposal, as originally conceived by YABhg. Tun, by resuscitating negotiations on the issue. In this context, YAB Dato’ Seri Abdullah Ahmad Badawi reiterated the rationale behind Malaysia’s proposal including the need to allow free flow of water so as to improve water quality in the Straits of Johore, to overcome traffic congestion on the Causeway and to allow navigation and promote commercial and recreational activities along the Straits.

18. The full straight bridge proposal was again raised by YAB Dato’ Seri Abdullah Ahmad Badawi during the two visits of Senior Minister Goh Chok Tong to Malaysia on 13 December 2004 and 1 March 2005 respectively. During the first visit, Malaysia officially presented the design of the full straight bridge for Singapore’s consideration. Singapore continued to maintain that the bridge would bring no benefits to Singapore in return for the S$725 million that it would have to allocate for its part of the project. He nevertheless suggested that it would be easier for Singapore to favourably consider Malaysia’s proposal if it were to lift the ban on the export of sand to Singapore that was imposed on 15 January 1997 and reinstate all the rights with regard to the use of Malaysia’s airspace that had been withdrawn on 16 September 1998. This was the first time that sand was linked by Singapore to the bridge issue. Singapore was previously enjoying the supply of sand from Malaysia by using the private sector.

19. To move forward with further discussions, both sides agreed for Senior Officials to meet as a follow up. A Ministerial Level Meeting was also proposed. Malaysia subsequently took the initiative to send a technical team to Singapore to give a technical briefing on the full straight bridge proposal on 28 January 2005. Singapore merely took note of the briefing without giving any specific commitments.

20. It was against the above backdrop that five meetings were held by Senior Officials of both sides between 7 September 2005 to 11 March 2006. Focus was given on the full straight bridge proposal with appropriate video presentation made to the Singapore delegation as a way of persuading Singapore to appreciate the merits of such a proposal. The Malaysian delegation’s approach was to discuss the full straight bridge proposal as a stand alone issue based on its merits. In this regard, the Malaysian side even offered to Singapore the possibility of Malaysia considering to bear the entire cost for the construction of the bridge in return for Singapore’s agreement without linking it to other issues.

21. It was obvious from the very first meeting that Singapore was more interested to negotiate on the basis of balance of mutual benefits involving sand and airspace. Singapore also preferred to build the bridge on a cost sharing basis if agreement was reached between the two sides. It subsequently dawned on the Malaysian delegation that, short of calling off of the Meeting altogether, progress could only be achieved on the basis of the balance of mutual benefit principle.

22. Armed with expert advice from the relevant Agencies and the mandate given by the Cabinet, the Malaysian delegation crafted a "Broad Political Understanding" (BPU) that incorporated elements constituting the balance of benefits, in respect of the bridge proposal. The BPU, agreed upon in principle, was not a final document and was subjected to the approval of the respective Governments. It was intended to provide the basis for follow up detailed technical and legal negotiations with a view to concluding a Final Agreement to be approved by the respective Governments.

23. In including sand as an element in the BPU, consideration was given to Malaysia’s precedent in exporting sand to Singapore, the quality and quantity available, location, royalty, issuance of license, State and Federal Government procedures, rules and regulations pertaining to the dredging of sand, related terms and conditions and the need for effective enforcement to prevent the illegal supply of sand to Singapore.

24. With regard to airspace, Singapore’s request was not something new as Malaysia had previously granted five privileges to RSAF before they were withdrawn in 1998. Singapore wanted Malaysia to reinstate all the privileges that it used to enjoy but with Ministry of Defenceís approval only two such privileges namely, Search and Rescue and Northern Corridor Transit, were considered.Even then the Search and Rescue privilege was offered on the basis of reciprocity. The Northern Transit Corridor privilege would also not involve RSAFís permanent presence in Malaysiaís airspace but merely a technical presence for transit purposes.

25. At all times during the discussions, account was taken of the need to protect Malaysia’s sovereignty, territorial integrity and national interest in applying the principle of balance of mutual benefits.

26. The Government decided to give itself some time before deciding on the BPU considering the socio-political dynamics prevailing within the country. The Barisan Nasional MPs were accordingly given a briefing on 28 March 2006 by YB Minister of Foreign Affairs to clarify the various options available to the Government. At the back of the Government’s mind was the need to make a final decision that would reflect a consensus amongst the people of Malaysia. This was very much in accordance with the principle, approach and conduct of the present leadership in dealing with important issues of interest to the Malaysian public.

27. To be more specific, the Government had Four Options to consider:

i) The first option was to approve the BPU and proceed with detailed negotiations to conclude a Final Agreement. The BPU could be considered as the least objectionable compromise to secure a full straight bridge to be left as a legacy for future generations. As a strong Government with more than a two thirds majority in Parliament, the Government could have gone ahead with the BPU and subsequently persuade Malaysians to accept the compromise as they begin to enjoy the convenience of a new full straight bridge after its completion. The problem however, was to obtain a clear consensus in the short term, taking into account public sentiments and the lingering concern of being seen to be giving in too much to Singapore for the sake of a bridge to replace the Johore Causeway. Malaysia could have offered to Singapore other concessions instead of sand and airspace. However, considering Singapore’s present immediate needs, no other concessions other than these two could be more important to Singapore.

(ii) The second option was to proceed with the scenic half bridge that would join the Singapore part of the Johore Causeway. The scenic bridge would be within Malaysia’s territory and a simplistic congestion would suggest this to be an appropriate alternative to the full straight bridge. The biggest problem however, based on expert advice is the need to consult and obtain the necessary approval of Singapore for the relocation of PUB water pipelines in the context of the 1961 and 1962 Water Agreements and the 1965 Separation Agreement mentioned above. As a responsible member of the international community Malaysia has to abide by the various principles of

international law. Going by Singapore’s known position there is no assurance that Singapore would not request for a balance of interests involving sand and airspace before considering its approval and extending its cooperation in respect of the relocation of the pipelines along the Malaysian part of the Johore Causeway for the construction of a scenic half bridge. If it comes to this during negotiations with Singapore, it would be highly regrettable if Malaysia has to concede on sand and airspace in return for a scenic half bridge instead of a full straight bridge. As pointed out by the Attorney General’s Chambers, Singapore could even halt the usage of the remaining Singaporean part of the Causeway by KTM on account of structural integrity upon the unilateral demolishment of the Malaysian part of the Causeway. This will directly affect the running of railway services to Singapore. Should this subsist for six months, it would attract section 4 of the Singapore Railway Transfer Ordinance (Chapter 320) and "Singapore Railway Land" (namely, KTM lands) will revert to Singapore.

(iii) The third option was to unilaterally build a scenic half bridge that could eventually be linked to become a full scenic bridge with Singapore. The same arguments as in (ii) above could apply. There is in addition no guarantee that Singapore would agree to build its side of the bridge without a balance of interests within the period of construction of Malaysia’s part of the bridge. This element of uncertainty would mean that Malaysia would eventually end up having to proceed with a scenic half bridge or an incomplete half bridge "waiting" to be linked by Singapore at its pleasure. Such a "hanging bridge" would no doubt become a subject of ridicule that would affect the image of Malaysia as a whole.

(iv) The fourth option was not to proceed with any bridge at all. This was finally the decision taken by the Government. If a compromise is considered too much under the first option in view of strong public sentiments, this should be the best option. This option means that Malaysia need not have to consider lifting the ban on the export of sand and granting to RSAF the limited privileges in the use of its airspace vis-a-vis Search and Rescue and Northern Corridor Transit. Malaysia can now even consider imposing a complete ban on the export of sand to any country as a matter of policy if public sentiments on the issue is as strong as reflected in the media. Such a policy, backed by an appropriate national legislation, would be a strong deterrent to prevent the illegal export of sand. The Government’s decision to scrap the bridge project would also have the advantage of preventing the two sides from being embroiled in endless political bickering and legal disputes. The decision is not necessarily a win-lose situation. Malaysia did not really lose even if it did not get the bridge. Singapore too did not look at Malaysia’s decision in terms of victory or defeat. After all, Singapore too did not get what it wanted in respect of sand and airspace.

28. The Government believes that building a bridge to connect two neighbouring countries should serve to promote friendly people-to-people contacts and interaction. Undertaking the unilateral construction of a bridge by having to resort to political and legal wrangling and disputes are not necessarily the best way to promote bilateral relations. The Government’s decision, as stated by YAB the Prime Minister himself, was a political decision, a collective decision made by the Cabinet, taking into account all relevant factors. It is indeed the prerogative of the Government of the day to make such a decision. Organising a referendum and making a decision on the basis of such a referendum has never been the practice of the Government nor a tradition in Malaysia.

29. Given all the above considerations, circumstances and complexities, the political decision collectively made by the Cabinet was ultimately the best decision in support of Malaysiaís national interest.

30. An important lesson can certainly be drawn by this bridge episode. Bilateral negotiations between Malaysia and Singapore continue to be affected by public sentiments and emotions associated with the historical baggage arising from Singapore’s 1965 Separation from Malaysia. More must certainly be done by both sides to allow the two countries to move ahead in nurturing mutually beneficial cooperative relations.

31. With the decision taken by the Government not to proceed with the bridge proposal and the contract given to the relevant company to complete the facilities linking the Causeway to the new CIQ complex in Johore Baru, Malaysia’s interest would now be better served by devoting all efforts towards ensuring the maximum utilization of the facilities concerned.

Ministry of Foreign Affairs Wisma Putra Putrajaya

24 April 2006