KUALA LUMPUR, MALAYSIA: Malaysia has decided against revisiting the raw water rate outlined in its 1962 Johor River Water Agreement with Singapore.
The decision was attributed to Johor’s continued reliance on treated water from Singapore, a critical resource for the state’s growing industrial demands.
Deputy Energy Transition and Water Transformation Minister, Mr Akmal Nasrullah Mohd Nasir, addressed the issue in Parliament on 2 December while responding to Pasir Gudang MP Hassan Abdul Karim’s question about the fairness of the water agreement.
He stated, “Based on discussions in October 2024 with the Menteri Besar of Johor (Onn Hafiz Ghazi) and the ministry, it was decided that the raw water rate need not be reviewed for the time being.”
Hassan had asked whether the government intended to negotiate with Singapore on a revision of the 1962 Johor River Water Agreement.
Mr Akmal explained that any change to the rate could impact the cost of purchasing treated water from Singapore, adding that the government is proceeding cautiously to avoid burdening the public.
Johor currently imports an average of 16 million gallons of treated water per day (mgd) from Singapore, far exceeding the 5 mgd stipulated under the 1962 agreement.
This incurs an additional annual cost of RM180,000 (S$54,300).
The agreement allows Singapore to draw up to 250 mgd of raw water from the Johor River at three sen per 1,000 gallons, while selling treated water back to Johor at 50 sen per 1,000 gallons.
Akmal emphasises cost advantages of current water arrangement
Deputy Minister Akmal highlighted the cost-efficiency of this arrangement, noting that treating the same quantity of water in Malaysia would cost RM1.80 per 1,000 gallons.
Despite efforts to achieve self-sufficiency through the Zero Dependency project—which includes constructing reservoirs, dams, and new water treatment plants—progress is hindered by rising industrial demands from sectors like data centres and semiconductor plants.
These industries are critical to Johor’s transformation into Malaysia’s technology hub but pose challenges to resource sustainability.
Mr Akmal reiterated that Johor’s dependency on Singapore’s treated water remains essential, particularly as industrial expansion intensifies.
“The supply of treated water from Singapore is still needed to fulfil the water needs for Johor,” he said.
During the session, Rompin MP Abdul Khalib Abdullah raised concerns about the sustainability of Johor’s water resources and potential economic implications.
Mr Akmal affirmed that Malaysia benefits economically under the current terms of the 1962 agreement and emphasised the importance of achieving self-sufficiency before considering new directions.
Past calls for renegotiation and ongoing discussions on water pricing
In 2018, former Prime Minister Dr Mahathir Mohamad described the water pricing as “unreasonable” and called for a renegotiation of the agreement.
Last year, the former Minister for Natural Resources, Environment, and Climate Change, Nik Nazmi Nik Ahmad, stated that the government intended to review the agreement due to “certain concerns.”
Both nations agreed to resume discussions on water pricing during the 2023 Leaders’ Retreat, while affirming their respective positions on the right to review the 1962 agreement.
Malaysian Prime Minister Anwar Ibrahim recognised the long-standing water supply issue between Johor and Singapore, underscoring the importance of honouring commitments and seeking a collaborative resolution to enhance Johor’s water capacity.
