However, this agreement has become one of the main reasons for the less cordial relations between Malaysia and Singapore. The main issue was the difference in interpretation of the agreement between the two countries, which led to the impasse in which it was implemented for many years. Malaysia`s reluctance to pursue the 1990 agreement was based on the fear that it would eventually be forced to relinquish ownership of some or all of KTM`s land in Singapore. On 22 June 2010, Lee Hsien Loong travelled to Malaysia to discuss the land exchange issue with Najib Razak. Following the same meeting, Lee Hsien Loong sent a revised land exchange offer to Najib Razak on June 28, 2010. Najib Razak accepted the offer on 17 September 2010 and Lee Hsien Loong responded on 19 September 2010 and confirmed his agreement. However, a September 2001 agreement helped to resolve this sensitive issue, which provided sufficient leeway to be used for political purposes in times of economic or political difficulties. The two governments have agreed on the Malaysian immigration checkpoint on the Kuala Lumpur-Singapore railway line, which is to be transferred from Tanjong Pagar to Kranji. The problem of the Malayan Railway country – a very delicate issue for Kuala Lumpur – was then resolved by the Singapore agreement to offer Malaysia twelve more land to Bukit Timah (as mentioned above). The link between a water agreement and an agreement on land concessions must not go unnoticed, hence the need for a package agreement as the most realistic and constructive approach to bilateral relations.  In 1993, the two countries agreed to transfer their above facilities to Tanjong Pagar until 1 August 1998 at Woodlands Train Checkpoint, the northern part of the island.
The agreement was concluded outside the FRAMEWORK of the EP in 1990. KTM had also been working with Singapore to reorient its railways at Woodlands, where Singapore has built a new immigration checkpoint to replace the old checkpoint and new facilities to allow passengers to enter the entry site in Singapore rather than Tanjong Pagar. The Malaysian Railway land agreement, sealed on Monday in Istana, was between two independent governments. Malaysia-Singapore Points of Agreement of 1990 (POA) is an agreement between Southeast Asian countries, Malaysia and Singapore, on the question of the future of Malaysian government-owned railways via the Malayan Railways (Keretapi Tanah Melayu or KTM) in Singapore. Singapore`s Prime Minister Lee Kuan Yew and Then Malaysian Finance Minister Tun Daim Zanuddin signed on behalf of their respective countries. In 1990, Lee Kuan Yew, then Prime Minister of Singapore, and Daim Zainuddin, then Malaysia`s Finance Minister, signed an agreement between the government and the government to return the railway to Singapore, known as the Point of Agreement (POA). However, the implementation of the POA was blocked because both parties had different interpretations of the terms of the agreement. Implementation of the agreement has been stalled for years due to disputes over its interpretation.
However, on 24 May 2010, Malaysian Prime Minister Najib Razak and his Singaporean counterpart, Lee Hsien Loong, after the withdrawal of the heads of state and government in Singapore, announced that the two sides had reached an agreement on outstanding issues concerning the 1990 POA, ending the 20-year-old impasse. At a happy time for both countries, the impasse was broken last year by Prime Minister Lee Hsien Loong and his Malaysian counterpart Najib Razak, who expressed a strong desire to solve the problem and showed strong leadership in his determination to truly advance relations.