Stalemate in Malaysian water dispute

Kuala Lumpur

A WATER restructuring agreement between Malaysia's federal government and the Selangor state has come to naught after both sides disputed whether the land on which the water pipes are laid are included in the deal.

Analysts caution that water shortages cannot be discounted if a new agreement is not reached now that the master agreement has been allowed to lapse. They also point to the uncertainties by water concessionaires that had inked an agreement to sell their assets to the state, as well as the firms awarded construction work on a new water treatment plant in Selangor.