20. Dezember 2020
Shortly after taking office last May, Mahathir called the price of raw water „manifestly ridiculous“ in light of Singapore`s economic developments and called for an immediate review of the agreement. Singapore rejected Mahathir`s claims and stated that Malaysia had waived its right to price check in 1987. Several countries have overlapping maritime requirements in the South China Sea, and the waterway is a strategic advantage in navigation and fishing. China claims almost all of the territory under the so-called Nine-Dash line, but its claim has not been recognized internationally. Other countries claiming a share of the South China Sea are the Philippines, Vietnam, Malaysia and Singapore. Under the 99-year agreement signed in September 1962, Singapore has the right to purchase 250 million gallons of raw water per day from the Johor River at 3 Malaysian cents (0.7 cents) per 1,000 gallons. In exchange, the state of Johor, South Malaysia, is allowed to purchase up to 5 million gallons of treated water per day, or 2% of the water delivered to Singapore at 50 cents per 1,000 gallons. In 1994, the Linggiu Dam was built upstream of the Johor River and collects and releases rainwater. This allows seawater to be pushed back to the sea, which ensures that the river water is not too salty to be treated. It is operated by the Public Utilities Board (PUB) in Singapore.
 While we were keen to negotiate on terms acceptable to both parties, Malaysia has constantly changed its negotiating positions on the points package. On the water, Malaysia`s price continued to rise during the negotiations. It increased from 45 sen per thousand gallons in August 2000 to 60 in February 2001 to RM6.25 in September 2002. In short, in 1998, Singapore and Malaysia began negotiations for a „framework for broader cooperation.“ During the 1998 financial crisis, Malaysia sought financial loans to support its currency; Singapore offered Malaysia to give its assurance of ensuring Singapore`s long-term water supply. In the end, Malaysia did not need the loans. The negotiations focused on other issues of common interest. In particular, Malaysia wanted to jointly develop other plots in Singapore in exchange for the transfer of its station away from Tanjong Pagar. PUTRAJAYA — Malaysia will present a revised price for raw water sales in Singapore, while prime minister Mahathir Mohamad`s government is advancing efforts to change the terms of a semi-annual agreement between neighbors. On August 31, 2011, the 2011 water contract expired and the hydropower plants and facilities were handed over to the Johor State Government. The shed included the skudai and Gunung Pulai water treatment facilities, built by the Public Utilities Board and managed by them for 50 years, as well as two pump houses in Pontian and Tebrau.  In early November, Malaysia renewed Singapore`s call to participate in the revision of a 1962 water agreement. According to Malaysian Natural Resources Minister Xavier Jayakumar, the water reserve margin in Johor state has fallen to 4% and could reach zero by 2020.