Malaysia doubles down on push to renegotiate water prices with Singapore

Photo: mrjn Photography / Unsplash
Photo: mrjn Photography / Unsplash

If you remember from the time when a Singaporean undergraduate traded verbal blows with the Malaysian prime minister at Oxford Union, the world’s oldest leader is still very miffed about the issue of water.

Prime Minister Mahathir Mohamad announced yesterday that his foreign minister, Saifuddin Abdullah, will be leading the charge in renegotiating prices of raw water sold to Singapore. Minister Saifuddin and a team of Malaysian officials will be planning to speak to their Singaporean counterparts about making adjustments to the water agreement signed between the countries in 1962.

The source of Malaysia’s unease is the set price of raw water being sold to Singapore, which will only expire in 2061. The water deal in question allows Singapore to draw 250 million gallons of raw water daily from the Johor River at 3 sen per 1,000 gallons. Once it is filtered in Singapore, Malaysia then buys back a portion of that at 50 sen per 1,000 gallons.

The agreements allowed for a price review 25 years after signing the contract — but the Johor government chose not to revise the prices.

Dr. Mahathir has made it clear since he was re-elected that he wants to renegotiate the terms with Singapore. In an interview with Channel NewsAsia last year, the prime minister believes that it is “manifestly ridiculous” for Malaysia to sell water at that 3 sen per thousand gallons. “That was okay way back in the 1990s or 1930s. But now what can you buy with 3 sen? Nothing.”

He repeated the same sentiments to reporters yesterday, according to Bernama.

“By right, price of goods should be current. Today we are not talking about millionaires, but billionaires because income has increased tremendously,” Bernama quoted Dr. Mahathir at the sidelines of an event in Puchong yesterday.

“So, if you think that the price set in 1926 still remains until the year 3000? Is it reasonable? I feel it is unreasonable.”

Singapore has been steadfast in refusing to budge on the issue, with the Ministry of Foreign Affairs (MFA) affirming that all the provisions of the 1962 Water Agreement must be complied with fully. MFA reminded Malaysia that it had the chance to review the prices back in 1987, but it didn’t. Nonetheless, Singapore has been supplying Johor with treated water in excess of Johor’s entitlement under the agreement “out of goodwill”.

The price of water would yet be another source of contention brewing between the two countries on top of the ongoing conflict about their maritime borders.



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