KUALA LUMPUR (July 16): The government is reviewing all existing agreements related to the issue of raw water from the Johor River being sold to Singapore at a fixed price of three sen (about one Singapore cent) per 1,000 gallons since 1962, said Deputy Prime Minister Datuk Seri Fadillah Yusof.

Fadillah, who is also the energy transition and water transformation minister, said this in response to former prime minister Tun Dr Mahathir Mohamad’s statement that over 61 years (1962-2023), the water deal translated into a significant sum foreseen as a subsidy to Singapore.

Fadillah said that the issue had persisted for years, even during the Mahathir administration.

“Whether Malaysia has been providing a subsidy [to Singapore] or not, we are reviewing all the existing agreements,” Fadillah said after opening the Water Malaysia Specialised Conference and Exhibition 2024 here on Tuesday.

In a statement last Friday, Mahathir said that Malaysia had been giving 'subsidies' to Singapore for the past 61 years, by selling 250 million gallons of raw water per day at a rate of only three sen per 1,000 gallons since 1962.

In return, the 1962 Johor-Singapore Water Agreement allows Malaysia to buy back the treated water at 50 sen per 1,000 gallons. The agreement will only expire in 2061.