Malaysia has been selling raw water to Singapore at what some consider a subsidy. Since 1962, the fee has been maintained at 3 sen (SGD 1 cent) per 1,000 liters. Tun Dr. Mahathir Mohamad, the previous Prime Minister, highlighted this aspect, as reported by Sinar Daily.
Dr. Mahathir stated that over 61 years (1962-2023), this deal amounted to a large sum intended as a subsidy to Singapore. He assessed the sum at RM2.379 billion.
"Malaysia is a subsidized country. We pay subsidies not only to our citizens but also to foreign countries.
"Until today, we sold raw water for 3 sen per 1,000 gallons. Calculations reveal that Singapore receives an annual subsidy of RM39 million 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 state of Johor loses out since the water is collected from Sungai Johor. "My advice is to sell raw Johor water for 3 sen per 1,000 gallons until the end of time," said Dr. Mahathir.
Singapore originally promised to pay 45 sen per 1,000 liters until 2011, then 60 sen from 2011 to 2061, with a 100-year extension after that.
However, the republic eventually rejected this when the Malaysian government allegedly imposed a stipulation for Singapore to pay 60 sen from 2001 to 2007 and RM 3 until 2011.
During his tenure as Prime Minister, Dr. Mahathir highlighted the matter in mid-2019, claiming that the price of raw water sold to Singapore was exorbitant and suggesting a renegotiation of the deal.
The arrangement, which expires in 2061, allows Singapore to take 250 million gallons of raw water per day (mgd) from Sungai Johor at a fee of 3 sen per 1,000 gallons.
Johor then buys purified water from the Republic for 50 sen per 1,000 liters.
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