SINGAPORE - Malaysia has no legal grounds to seek a review of the price it is charging Singapore for water supplies, the Singapore government said.

Kuala Lumpur did not exercise the clauses which allowed for such a review when they were due as agreed under the two water pacts between the two neighbours, the ministry of foreign affairs said.

"The 1961 and 1962 water agreements do contain clauses providing for a price review after 25 years," a ministry spokesman said in a statement.

"But Malaysia did not invoke these clauses when they became due, and we have been advised that Malaysia has lost the legal right to do so," the spokesman said.

The ministry's comments came after reports from Malaysia quoted Foreign Minister Syed Hamid Albar as saying Kuala Lumpur was "giving Singapore one more chance" to resolve differences over the water pricing at a new meeting this week.

The two-day meeting is due to begin today in Johor.

Water has been a key irritant in bilateral relations since Singapore was kicked out of the Malaysian Federation and gained independence in 1965.

Malaysia, which supplies resource-starved Singapore with half its daily water needs, wants a price increase. It now sells raw water to Singapore at three sen (less than one cent) for 1,000 gallons (4,550 litres).

Singapore recently began recycling waste water on a limited scale to cut its dependence on Malaysian imports, and has said it will be in a position to let one of the two countries' water agreements lapse in 2011.

A second agreement expires in 2061. AFP