Malayan Railway land swap – A win win solution

When the Point of Agreement(POA) was signed, despite no agreement on the land development charges, it was touted as a win win agreement for both Malaysia and Singapore. Yesterday, when the issue of development charges was settled by an International Arbitration Court, despite the ruling in favour of Malaysia for not having to pay the development charges, it was again touted as another win win solution. All in all there were 4 wins to be shared by both parties.
 
In the first instance the 2 wins were equally shared in the sense that both parties have reached an agreement to break a 20 year impasse on the use of the Railway land. In the second instance, it was again a win win but it looks more like Malaysia getting the 2 wins. And the best part, Singapore is so happy with this win win settlement when it lost the right to collect $1.4b of development charges on 3 plots of the land swap. It could be a case of Singapore’s generosity and magnanimity. It could be a case that Singapore did not think it could win and the judgment was what it had expected all along. It could gain more goodwill and save some legal fees if it just waived it earlier without going through the motion.
 
Why is Singapore in cloud nine, a kind of happy like ‘fxxk’ feeling when losing a legal dispute or disagreement? I can only make a few guesses. The joint company MS with a 60:40 ownership between Malaysia and Singapore would be making the payment for the development charges. So with this ruling, Singapore only gives up 40% of the estimated $1.4b. No big deal really. And according to another MP’s comment, the accrued profits from the joint venture would benefit Singapore more? I am still trying to figure out how when Singapore’s share is 40%. Is there something that the public do not know? This statement could send the Malaysians wondering and many sleepless nights.
 
Of course there is tremendous goodwill to gain from this process. Both parties would now be more comfortable going for international arbitration with Malaysia feeling that it is not necessarily a one sided affair, that Singapore with all the top legal minds would always win. So Singapore would have more chances to take the Malaysian govt to court in the future with international arbitration an acceptable option. This could be a case of a very long term view, losing a case now is worth paying for winning more cases in the future, provided there are future cases to be won.
 
No matter what, this is one of those rare instances where the losers in an arbitration were laughing themselves crazy and probably popping champagne in celebration for a ‘win win’ situation that it gets none of the 2 wins. For goodwill and good long term relationship, it is always good to let the other party win and feel good about it when one can afford to lose in monetary terms. What is a few hundred million?
 
A cautionary note, maybe Singapore should play down on this good news and cut down on the celebration. It may trigger the overly paranoid Malaysians to start wondering whether they did win this case or losing something big that they did not know. Historically they have been losing to Singapore in many tussles and knowing that Singapore always want to win, so how can they be losing in this case. And how can Singapore be celebrating when ‘losing’?
 
Fishy right? Just kidding. I say just kidding ok, can take a joke or not?

Kopi Level - Green