Malaysia has opened an ad campaign to correct what it calls Singapore's "misconceptions and allegations" over the two nations' deep-seated water row, local media reported today.

The ads in the four major Kuala Lumpur dailies say Singapore, which is dependent on Malaysia for half its daily raw water needs, made a whopping RM662.5 million (US$174.3 million) profit in 2001 alone from raw water supplied by Malaysia.

It paid only RM2.39 million for the water sourced from southern Johor state, the ads say.

The full-page ads from the National Economic Action Council (NEAC) proclaim in bold capitals: "The Singapore government has gone all over the world and tarnished the name of Malaysia. It is time to set the record straight."

The ads end with the clincher, "Malaysia gets nothing. Singapore gets rich."

The council is to publish a booklet outlining the Malaysian version of the squabble, another effort to counter Singapore's pamphlet "Water talks? If only it could" that accuses Malaysia of being unreasonable and frequently changing its stance.

NEAC executive director Mustapa Mohamed said the campaign sought to inform the public of the reasons discussions have stalled over the water row, he was quoted as saying by the New Straits Times.

Legal action?

Malaysian Prime Minister Dr Mahathir Mohamad has accused Singapore of using "unethical" tactics by publishing letters discussing the row that were exchanged by national leaders.

At the heart of the row is the price paid by tiny but wealthy Singapore for raw water from its large neighbour.

Malaysia sells the water to Singapore at three sen (less than one cent) per 1,000 gallons (4,550 litres), under terms of decades-old agreements. Kuala Lumpur wants a price increase.

Malaysia decided to halt talks on the issue last year after it failed to secure a price increase, and said it was considering taking legal action against Singapore.

Singapore has begun a limited waste water recycling programme to cut its dependence on Malaysian imports and has said it will be able to let one of two water agreements lapse in 2011. The second agreement expires in 2061. - AFP