The Edge Review reported that a London panel of arbitration will make a decision on the dispute between Malaysia and Singapore on levy usually imposed by Singapore on the JV company between Khazanah 60% and Singapore's Temasek Holdings 40%.
It is the usual practised of Singapore to charge levy on any development on the island. Malaysia contested the levy and claimed the history of the deal should be the basis of exemption.
The levy could be similar to any payment to local authorities for development and property ownership like quit rent, land premium, etc. Does it mean the practise in Malaysia is for Khazanah to be exempted from such payments to local authorities?
Tan Sri Nor Mohamaed Yakcop will testify for Malaysia. Well ... if he fail to win, it should not be a surprise. Losing and pocketing public money is nothing new to him. What is a couple of hundreds of million when he has lost billions.
Malaysian Insider has a report on the Edge Review report, below:
London panel to rule on US$1 billion Malaysia-Singapore dispute, says reportKeep failing and he will continue to stay on. That is a new meritocrasy.
Published: 22 August 2014A dispute between Malaysia and Singapore will come to a close in a few weeks when a London arbitration panel decides on a US$1.12 billion (RM3.54 billion) development charge the island state imposed on a joint-development project in which Malaysia has a 60% stake, The Edge Review reported today.
The weekly regional magazine reported in its Informer column that the closed-door hearings in London concluded earlier this month after leading Queen's Counsels representing both nations had argued their case.
Former second finance minister Nor Mohamed Yackop testified for the Malaysian side, while Singapore's former foreign minister George Yeo was the key witness for the island state in the hearings, sources told The Edge Review.
Both parties have resolved to accept the panel's decision, expected in a few weeks.
"The worst case scenario is that the developer will have to pay the charge or an amount ruled by the (arbitration) panel," a senior financial executive figure familiar with the arbitration told The Edge Review.
"But the Malaysian side strongly believes that there should not be a charge because of the history behind the deal," he said, adding that the figure was seen by the government as being on the "high side".
The levy was slapped by Singapore on the joint-development project shortly after its state-owned Temasek Holdings and Malaysia's sovereign wealth fund Khazanah Nasional finalised the deal three years ago.
Under the deal, four parcels of land in Marina South and two in Ophir Rocher are being developed by M+S, the joint-venture company that is 60%-controlled by Khazanah and 40%-owned by Temasek.
Malaysia reportedly demanded that the charge be waived on the grounds that the development project was the result of a unique political arrangement between the two governments.
But Singapore, which imposes the levy on all projects on its shores, is said to have adopted a strict business approach to the dispute.
Both countries decided to proceed with the project and to resolve the impasse through arbitration.
The projects are reportedly a direct result of a breakthrough deal in 2010 to overcome a decades-old dispute for control over a railway corridor that runs from Malaysia to Singapore's central business district.
But the issue comes at a time when relations between the two neighbouring countries are strained by the recent row over toll charges for vehicles crossing the causeway, as well as several large development projects in Malaysia which could have an environmental impact on Singapore.
Read on here.
