In keeping with current times, the Johor government will raise the cost of raw water sold to Singapore to a reasonable price.

Johor Menteri Besar Osman Sapian (above) said the new price was likely to be the same as the price of raw water sold to the Malacca government which was at RM0.50 sen for every 1,000 gallons.

“... or slightly less than that price but not what it is today. I think that if we (the Johor government) raise the price to a reasonable and affordable one, we hope the Singapore government will accept it,” he said.

According to the water agreement between Malaysia and Singapore which expires in 2061, Malaysia supplies Singapore with 250 million gallons of raw water daily at 3 cents per 1,000 gallons. Malaysia then re-purchases a portion of the supply that has been treated at 50 cents per 1,000 gallons.

The price increase was discussed with Prime Minister Dr Mahathir Mohamad last week but no consensus was reached, Osman told reporters after attending Kumpulan Prasarana Rakyat Johor’s Aidilfitri do today.

The discussion is still ongoing because it is necessary to examine the existing agreement and after that, the Malaysian government would want to discuss further with Singapore, he said.

On June 25, Mahathir criticised the price of raw water sold to Singapore as “ridiculous” because it was not in keeping with the current times.

As such, he said the country had to renegotiate the terms of the water supply agreement with Singapore. - Bernama