Malaysian Government reassessing all water agreements with Singapore

SINGAPORE: The Malaysian government is currently reassessing all existing agreements concerning the sale of raw water from the Johor River to Singapore at a fixed rate of 3 sen (SGD 0.01) per 1,000 gallons, a rate that has been in place since 1962, according to Deputy Prime Minister Datuk Seri Fadillah Yusof.

Fadillah, who also serves as the Minister of Energy Transition and Water Transformation, announced this in response to former Prime Minister Tun Dr Mahathir Mohamad’s remarks.

Dr Mahathir highlighted that over the past 61 years (1962-2023), this water agreement has resulted in a substantial financial benefit to Singapore, which he referred to as a subsidy.

The Deputy Prime Minister acknowledged that this issue has been ongoing for many years, including during previous administrations.

“Whether Malaysia has been providing a subsidy (to Singapore) or not, we are reviewing all the existing agreements,” Fadillah said at the Water Malaysia Specialised Conference and Exhibition 2024.

Last Friday, Tun Dr Mahathir stated that Malaysia has effectively subsidised Singapore for the past 61 years by selling 250 million gallons of raw water daily at the low rate of 3 sen (SGD 0.01) per 1,000 gallons since 1962.

Under the 1962 Johor-Singapore Water Agreement, Singapore receives 250 million gallons of raw water daily at this rate, and in exchange, Malaysia can purchase treated water at 50 sen per 1,000 gallons. This agreement is set to expire in 2061.

/TISG