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Review of Raw Water Rate to Singapore Requires Comprehensive Evaluation of Economic Implications.

KUALA LUMPUR: The government has decided to stick with the existing provision in the 1962 Water Agreement, and any change to the raw water rate to Singapore needs to consider the implications to the cost of purchasing treated water from the republic, the Parliament was told today. Deputy Minister of Energy Transition and Water Transformation, Akmal Nasrullah Mohd Nasir, emphasized the economic returns the current rate brings, even though it is set at a low three sen per 1,000 gallons.

According to BERNAMA News Agency, Johor, based on the records of Badan Kawal Selia Air Johor (BAKAJ), currently buys an average of 16 million gallons (MGD) of treated water per day from Singapore at a rate of 50 sen per 1,000 gallons, far exceeding the rate of five MGD provided for in the agreement. The Deputy Minister highlighted the comparative costs, stating that treating the same water locally costs approximately RM1.80 per cubic metre, translating to around 11 sen per gallon when purchased from Singapore.

Akmal Nasrullah
Mohd Nasir further explained, ‘There is reciprocity there. Hence, before we make or proceed with any decision, we need to achieve net zero dependency, which is the ability to produce treated water in Johor.’ He made these remarks during the question and answer session in the Dewan Rakyat, underscoring the importance of balancing economic gains with strategic water resource management.

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