Malaysia’s Deputy Energy Transition and Water Transformation Minister Akmal Nasrullah Mohd Nasir confirmed on 2 December 2024 that there will be no immediate renegotiation of raw water rates with Singapore, a decision influenced by the state’s increasing industrial needs.
Dependence on Treated Water
Despite ambitious plans for self-sufficiency, Johor remains reliant on treated water from Singapore. Mr Akmal described the current supply situation, stating, “At present, it has been decided that the rate for raw water… need not be reviewed,” while stressing the critical importance of maintaining treated water imports.
Key Agreement Details
- Under the 1962 Johor River Water Agreement, Singapore can draw up to 250 million gallons of raw water per day.
- Singapore pays 3 Malaysian sen per 1,000 gallons and sells treated water back to Johor at 50 sen per 1,000 gallons.
- Johor is entitled to only 5 million gallons of treated water daily but receives 16 million gallons from Singapore.
Economic Implications
Johor incurs an additional cost of around RM180,000 annually due to this arrangement. Critics argue that the terms of the 1962 agreement disproportionately benefit Singapore and consider them a financial burden on Malaysia.
Plans for Zero Dependency
To address its water needs sustainably, Malaysia is implementing the Zero Dependency project. This initiative includes:
- Constructing riverside reservoirs along the Johor River.
- Building new water treatment plants.
- Enhancing water conservation and management.
However, Mr Akmal noted that achieving this goal by 2030 will be challenging, given the burgeoning demand from industries such as data centres and semiconductor plants.
Future Discussions
The ongoing dialogue between Malaysia and Singapore regarding the water agreements aims to review raw and treated water prices while acknowledging each nation’s established positions. As both countries work towards resolving these issues, the need for a balanced approach to resource management remains critical.