The agreement between Singapore and Malaysia yesterday is a 'compromise' between the two nations and it is up to the public to decide which country got a better deal, said Singapore's Senior Minister Lee Kuan Yew today.

"You look at the facts. Fair or unfair, you decide. We have made a deal, so let's move on," he said at a press conference when pressed to state if he felt the deal was satisfactory for the island state.

"Then, if you ask (Malaysian Prime Minister) Dr Mahathir, he'll say it could've been better," Lee told reporters in Kuala Lumpur.

According to Lee, although the deal was a 'compromise', observers could weigh for themselves which government had compromised more for the deal.

"Prime Minister Goh (Chok Tong) asked for 750 million (gallons) of water after 2061. In return, he offered the 12 pieces of land at Bukit Timah. He also agreed to increase the price for the current amount water we take from Malaysia from three sen to 45 sen (per 1,000 gallons)," he said.

"The variation of the water agreement is just a bonus to get security of supply after 2061. But the offer of water has been reduced from 750 to 350 (million gallons)," he said.

With yesterday's agreement, Singapore will get 350 million gallons of water per day from Malaysia after the water supply contract between both countries expires in 2061.

After 2061, Malaysia will sell 100 million gallons of raw water per day to the republic, Another 250 million gallons of filtered water will be pumped over to the island per day to be processed on a joint venture basis.

Singapore has agreed in principle to pay 60 sen per 1,000 gallons of raw water after 2061 with this rate being adjusted for inflation every five years.

Currently, Singapore pays Malaysia three sen per 1000 gallons of water. In line with Singapore's offer yesterday, it will now pay 45 sen per 1,000 gallons until 2061.

Issues of contention

In addition to the water deal, Singapore and Malaysia also agreed during a bilateral discussion in Putrajaya today to settle all outstanding issues between the two countries.

The talks, jointly chaired by Lee and Prime Minister Dr Mahathir Mohamad, discussed five major issues which, because of their impasses, had put a strain on Malaysia-Singapore relations.

Among them are the development of a piece of land in the island state owned by KTM Berhad, the status of the Malaysian Customs, Immigration and Quarantine (CIQ) facility in Tanjong Pagar, the withdrawals of contributions by Malaysian workers from Singapore's Central Provident Fund (CPF) and the use of Malaysian airspace by the republic's air force.

National news agency Bernama yesterday reported that Singapore had offered a piece of reclaimed land of equal value in exchange for the KTM land at Tanjong Pagar.

The republic has also agreed to Malaysia's proposal to move the KTM station in Tanjong Pagar to Kranji. CIQ facilities for railway would also be moved to Kranji but similar facilities for road travel would be maintained at Woodlands.

Follow up letter

Asked by malaysiakini on why it was him instead of prime minister Goh who led the Singaporean delegation to Malaysia, Lee said that the prime ministers of both countries could not reach an agreement over the years on the outstanding bilateral issues.

"Remembering the way I was able to reach an agreement with Dr Mahathir through Tun Daim (Zainuddin), I asked my prime minister if he would like me to try, and he said, yes, go ahead," said Lee.

Lee said that after meeting with Mahathir in Kuala Lumpur in August last year, he had followed up with a letter to the then special functions minister Daim.

He added the Malaysian premier had replied to him in February this year and subsequently he dealt directly with Mahathir following Daim's resignation from the government.