SINGAPORE – An arbitral tribunal appointed by Malaysia and Singapore has decided that a joint investment company of the two countries will not be conditionally liable to pay development charges on the former Malayan Railway parcels of land in Keppel, Kranji and Woodlands.
The tribunal decided that the company, M+S Pte Ltd, would not have been liable to pay the charges if the parcels had been vested in M+S Pte Ltd and if it had actually developed the land in accordance with the proposed land uses set out in the annexes to the Points of Agreement (POA).
The two countries, in a statement issued by their foreign ministries, said they were satisfied with the arbitral process and had agreed to abide by and fully implement the decision of the tribunal.
“By resolving this matter through third party arbitration, both countries have demonstrated our common commitment to settling disputes in an amicable manner, in accordance with international law,” the statement said.
It said the full and successful implementation of the POA had paved the way for joint development projects and closer collaboration between Singapore and Malaysia.
The prime ministers of Singapore and Malaysia announced in September 2010 that both countries had different views relating to the development charges on the three parcels of POA land.
The two leaders agreed to settle the issue amicably through arbitration and agreed to accept the arbitration award as final and binding.
In January 2012, Singapore and Malaysia entered into an agreement, submitting the issue to final and binding arbitration. The Permanent Court of Arbitration acted as registry in this arbitration.
The arbitration proceedings were conducted in accordance with the procedural rules agreed to by Malaysia and Singapore, and before a three-person arbitral tribunal appointed by the countries.
M+S Pte Ltd is a joint investment company co-owned by Malaysia’s Khazanah Nasional and Singapore’s Temasek Holdings. – Bernama