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Monday, 1 July, 2002, 11:32 GMT 12:32 UK
Singapore, Malaysia tackle water row
The Singaporean and Malaysian foreign ministers have begun two days of talks to try to thrash out a deal on the tricky issue of water supply.

Singapore currently buys half of its daily water from Malaysia's Johor state for less than one cent for every 1,000 gallons.

Malaysia has proposed a new formula for fixing the water prices, which has not yet been made public.

But correspondents say the gulf between the two sides is wide, with further disagreements over a proposed bridge linking the two countries and the use of Malaysian airspace by Singapore's airforce.

It is the first time that the issue of water supply has been discussed by Singapore's foreign minister S Jayakumar and his Malaysian counterpart, Syed Hamid Albar.

From the newsroom of the BBC World Service

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