A deputy minister cited cost savings as a reason, and that Malaysia needs to achieve a “net-zero dependency” by being capable of producing treated water in Johor before reviewing any new changes.
The 1962 agreement allows Singapore to draw water from the Johor River through the Linggiu Reservoir. SINGAPORE: Malaysia and its southern Johor state will not be renegotiating raw water rates with Singapore yet, according to a minister.
Singapore pays 3 Malaysian sen per thousand gallons of raw water and sells treated water back to Johor at 50 sen per thousand gallons, a fraction of the cost of treating the water. "For comparison, treating the same amount of water locally would cost around RM1.80 per cubic metre, while the treated water we buy from Singapore costs about 11 sen per cubic metre”, he added.
“These projects aimed to boost water storage capacity, allowing Johor to meet its long-term water needs independently, but achieving zero dependency by 2030 may be challenging due to the growth of industries such as data centres and semiconductors,” Mr Akmal explained. “Whether Malaysia has been providing a subsidy or not, we are reviewing all the existing agreements,” Mr Fadillah said on Jul 16.The 1962 water agreement, along with an earlier water agreement in 1961 which expired in 2011, has been a constant source of public political wrangling over the years, especially when Malaysia’s longest-serving prime minister Dr Mahathir was in office.
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