KUALA LUMPUR: The government is reviewing all existing agreements related to the issue of selling raw water from Johor to Singapore at a fixed price of 3 sen per 1,000 gallons, which has been in place since 1962, says Deputy Prime Minister Datuk Seri Fadillah Yusof.
Fadillah, who is also Energy Transition and Water Transformation Minister, said this in response to former prime minister Tun Dr Mahathir Mohamad's statement that for 61 years (1962-2023), the water deal involved a significant sum which could be seen as a subsidy to Singapore.
Fadillah said the issue has persisted for years, even during Dr Mahathir's administration.
"Whether Malaysia has been providing a subsidy (to Singapore) or not, we are reviewing all existing agreements," he said after opening the Water Malaysia Specialised Conference and Exhibition 2024 here on Tuesday (July 16).
In his statement last Friday, Dr Mahathir claimed that Malaysia had been giving "subsidies" to Singapore for 61 years by selling 250 million gallons of raw water per day at a rate of only 3 sen (SGD 0.01) per 1,000 gallons since 1962.
The 1962 Johor-Singapore Water Agreement gives Singapore 250 million gallons of raw water per day at 3 sen per 1,000 gallons and, in return, Malaysia is entitled to buy back the treated water at 50 sen per 1,000 gallons. The agreement will only expire in 2061. – Bernama