Singapore and Malaysia agreed to swap six parcels of land under a revised agreement as they seek to boost relations that have been marred in the past by disputes over water supply and territorial claims.

The neighboring countries agreed in May to relocate the operations of a train station owned by the Malaysian government near the city-state’s business district, ending a decades-old dispute over land usage. Singapore made an “improved” land swap offer, the island’s Prime Minister Lee Hsien Loong said in the city-state today.

 

Singapore will swap four land sites in Marina South and two in Ophir Rochor in exchange for three sites in Tanjong Pagar, Kranji, Woodlands and another three in Bukit Timah, the two countries said in a joint statement released in Singapore after Lee met Prime Minister Najib Razak today.

 

The two governments disagree on whether development charges should be levied on the land and will seek arbitration from the Permanent Court of Arbitration, according to the statement.