KUALA LUMPUR: The government is reviewing the existing agreement on raw water from Sungai Johor that has been sold to Singapore at three sen (S$0.01) per 1,000 gallons since 1962, says Deputy Prime Minister Datuk Seri Fadillah Yusof.
Fadillah, who is also Energy Transition and Water Transformation Minister, made this statement in response to former prime minister Tun Dr Mahathir Mohamad’s comment that over 61 years (1962-2023), the water deal had amounted to a significant sum seen as a subsidy to Singapore.
According to Bernama, Fadillah said the issue had persisted for years during the administration of previous prime ministers.
“Whether Malaysia has been providing a subsidy to Singapore or not, we are reviewing the existing agreement,” he said after opening the Water Malaysia Specialised Conference and Exhibition 2024 yesterday.
Dr Mahathir recently said Malaysia had been giving “subsidies” to Singapore by selling 250 million gallons of raw water per day at a rate of only three sen per 1,000 gallons since 1962.
The 1962 Johor-Singapore Water Agreement allows Singapore to receive 250 million gallons of raw water per day at three sen per 1,000 gallons. In return, Malaysia is entitled to buy back treated water at 50 sen per 1,000 gallons.
The agreement will expire in 2061.
Fadillah also announced the government’s aim to introduce private financing for water sector programmes to ensure financial sustainability and reduce dependency on government expenditure.
He said a united effort from both the public and private sectors was needed for sustainable water management, including embracing technology, upgrading infrastructure and promoting responsible consumption.
“It is our collective responsibility to ensure universal access to clean and safe water as water security underpins justice, prosperity and hope for a better future,” he said in his keynote address at the event.
Fadillah reiterated the strategic objectives of increasing clean water and sewerage coverage in rural areas to 98% and reducing non-revenue water to 31% by 2025.
“Embracing Malaysia’s push towards the Fourth Industrial Revolution, I am optimistic about our capacity to adopt advanced technologies in bolstering our water management capabilities,” he said.
To unlock sustainable water management’s full potential, the Energy Transition and Water Transformation Ministry (Petra) will develop a centralised water data and information centre, serving as a reliable source for calculating the national virtual water footprint and establishing a water footprint inventory across economic sectors.
“Data-driven decision-making, research and development, and public-private collaboration will be key in driving our transformation plan to foster innovation and inclusivity,” Fadillah added.
