PM Lee Hsien Loong at the Q&A Segment of the 10th Singapore-Malaysia Leaders Retreat Joint Press Conference

PM Lee Hsien Loong: On the Causeway, apart from the RTS link, what we want to do is to enhance and make full use of the capacity of the Causeway because the flow depends not just on how wide the Causeway is, but also on the clearance on both sides, the CIQ in Malaysia at JB and the CIQ at Woodlands. The Malaysians have put in considerable efforts to improve the CIQ at JB. I see the Menteri Besar has been visiting CIQ at all hours in order to make sure that things are flowing well, and we are trying our best to improve things on our side too.

And one of the things we are doing on our side is to redevelop the CIQ for the long term so that we have more capacity and can handle bigger volumes and the flow through faster. And that means redevelopment, reclamation and I (would) have to tear down the existing structure, and I have to enlarge the footprint. And I explained this to Dato’ Seri in our meeting and I am happy that he supports our project and we will be able to see it through.

Secondly, for the potential scale and priority areas of development for the SEZ. This is the subject of a study because we are now doing a feasibility study to see what we want the SEZ to focus on and where there is interest from investors, and market demand.

Preliminarily, I think there are three things you want to do - One, improve the flow of goods between the two sides because SEZ means Special Economic Zone. It may mean special tax arrangements and bonded warehouses and therefore more easy border flows.

Secondly, easier arrangements for flow of people who have to work on both sides of the Causeway, and they can go in and go out and the companies in the SEZ, the investor companies will be able to get personnel they need and the right mix of professionals, skilled workers and other general workers.

And thirdly, for the SEZ to enhance the ecosystem of the Iskandar development region as well as Singapore because with a SEZ, it makes something meaningful for Iskandar as a place where investors will be focusing their attention and it means that for companies in Singapore, they can think of having a presence on both sides and therefore have more flexibility and be able to do things which they could not do if they were only in Singapore or only in Johor.

We have great hopes but first we would have to do the feasibility study and we have to negotiate the MOU and we are hoping to have that done by early next year. It is a lot of work, and MTI and the Ministry of Economy from the Malaysian side, I think they will have to scramble, but we would like to see done as soon as we can.

Bernama: [Translation of question which was asked in Malay] This question is directed to PM Anwar Ibrahim. In January this year, you had given your commitment to resolve various bilateral issues that are outstanding between Malaysia and Singapore urgently. Are you satisfied with the progress made so far, and at this moment, confident that the issues will be addressed during your term?

TV3: [Translation of question which was asked in Malay] Dato’ Seri Anwar, of all the issues that are still outstanding, which in your opinion have progressed positively and which have made slower progress?

PM Lee: I think these are all important issues to both countries. Some are very long standing. As Prime Minister Anwar had said, they have not moved as fast as we would like them to. Sometimes there are reasons why things take time. But the PM and I both would like to move as expeditiously as we can to address these problems, and address them from a national point of view, holistically, taking into account the overall relationship and cooperation between our two countries.

It is not easy because first, you have to build trust with each other, and between Dato’ Seri and me, we have known each other now for about 30 years, almost 30 years and so that is not something which happens just any time. It just happens that we have this opportunity. I think we also have the determination on both sides to want to work together and to tackle these problems now, and have the confidence that politically, this is something which we can explain to our populations, to the rakyat, that these are some things which will benefit the population on both sides and it is good to do, win-win. Some of them may be not so conventional in the way we have been thinking about it before, but it is something which if we take a long-term overall point of view, I think we can work out solutions which will address both countries concerns and be beneficial to both countries.

So I would not say what is fast and what is slow. I think each one will go as expeditiously as it can because we are both equally determined, and as they say in Malay sedikit-sedikit, lama lama menjadi bukit. Tetapi tak lama lagi.

Channel NewsAsia: Good afternoon Prime Ministers. Amidst the current situation in the Middle East what specific approaches will Singapore and Malaysia take to ensure that your reaction to the war and the ground sentiments in both countries do not have any spillover effects, especially on mutual investments, bilateral cooperation and our long-standing ties?

PM Lee: I do not think they should affect our bilateral relations. I think we have each expressed our views on what is happening in the Middle East. Singapore has made repeated statements about this and condemned what is happening. The violence, the human tragedy of civilians and innocent victims being killed and massacred and hoping that the two parties can make progress towards a negotiated two state-solution to the Middle East. I think Singaporeans understand where we stand.

Malaysia also has made its position clear. I think Dato’ Seri is here. Their situation is not the same as ours because we have diplomatic relations with Israel but at the same time, we have friendly relations with the Palestine Authority. And Malaysia has very friendly relations with the Palestine Authority, but they do not have diplomatic relations with Israel. So the diplomatic situation is not identical, but there is no reason for that to cause a difficulty between Malaysia and Singapore.