Former Prime Minister Tun Dr. Mahathir Mohamad has raised concerns over Malaysia’s water trade agreement with Singapore, outlining how the arrangement heavily benefits Singapore’s economy at Malaysia’s expense. In a recent post on his personal blog, Dr. Mahathir detailed the significant profits Singapore generates from treating and reselling water sourced from Malaysia’s Johor state.
According to Dr. Mahathir, Malaysia supplies 250 million gallons of raw water daily to Singapore at an exceptionally low rate of 3 cents per 1,000 gallons, earning just RM7,500 per day. However, Singapore resells 12% of this water, or 30 million gallons, back to Johor as treated water at 50 cents per 1,000 gallons, costing Malaysia RM15,000 daily for treated water purchases.
Singapore’s earnings from this trade far outweigh Malaysia’s. Dr. Mahathir highlighted that Singapore sells 1,000 gallons of treated water for approximately 11.36 Singapore Dollars (RM36.30). Based on the total volume of water involved, Singapore earns a staggering RM9.075 million daily, translating to an annual revenue of RM3.31 billion.
"Malaysia earns virtually nothing from this arrangement," Dr. Mahathir lamented. He pointed out that Malaysia’s daily revenue from the water supply amounts to RM7,500, while Singapore not only covers its payment for raw water but also makes an additional profit of RM7,500 from selling treated water back to Johor.
The former premier sarcastically commended Malaysia for effectively contributing to Singapore’s GDP, a statement that underscores his dissatisfaction with the current terms of the water agreement.
This longstanding water deal has often been a point of contention between the two nations, with calls from various Malaysian leaders over the years to review or renegotiate the terms. Dr. Mahathir’s latest remarks add renewed urgency to the issue, emphasizing the financial imbalance and potential economic consequences for Malaysia.
As discussions about resource management and bilateral relations continue, Dr. Mahathir’s critique serves as a stark reminder of the need for equitable agreements that benefit both nations fairly.
Information source: thechedet.com
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