'Sell raw Johor water at 3 sen until the end of time' - Tun Mahathir

SHAH ALAM - Malaysia has been selling raw water to Singapore at a price some consider a subsidy. The rate is 3 sen (SGD 1 cent) per 1,000 gallons, a fixed price since 1962. This detail was highlighted by former Prime Minister Tun Dr Mahathir Mohamad.

Dr Mahathir pointed out that over 61 years (1962-2023), this agreement translated to a significant sum foreseen as a subsidy to Singapore.

He estimated the total amount at RM2.379 billion.

“Malaysia is a subsidy country. We not only provide subsidies to our own people but also to foreign countries.

"Until now, we still sell raw water at the price of 3 sen per 1,000 gallons.

"Calculations show that Singapore receives a subsidy of RM39 million per year from Malaysia (Johor) compared to if the price was 45 sen for 1,000 gallons per day since the beginning of the sale of 250 million gallons per day.

"The one losing out is the state of Johor because the water is extracted from the Sungai Johor. My advice is to sell raw Johor water at the price of 3 sen per 1,000 gallons until the end of time," Dr Mahathir said in a statement today.

Singapore previously agreed to pay 45 sen per 1,000 gallons until 2011 and 60 sen from 2011 to 2061, which would continue for 100 years thereafter.

However, the republic later rejected this when the Malaysian government reportedly imposed a condition that Singapore must pay 60 sen from 2001 to 2007 and RM 3 until 2011.

Dr Mahathir, during his tenure as Prime Minister, raised the issue in mid-2019, stating that the price of raw water sold to Singapore was unreasonable and proposing to renegotiate the terms of the agreement.

The agreement, which ends in 2061, gives Singapore the right to extract 250 million gallons per day (mgd) of raw water from the Sungai Johor at a rate of 3 sen per 1,000 gallons.

Johor then buys back treated water from the republic at a rate of 50 sen per 1,000 gallons.