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Water Pricing War
The unresolved matter continues between Singapore and Malaysia
By Low Sock Ken - 2nd December 2002 - Back to News
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Singapore is heavily depending on Johor (a southern state of Peninsula Malaysia) for water supply, Water pricing, is one of the issues in the billateral package talk of the two countries. Both countries began the pricing war in the media after the meeting of the package of bilateral issues in July.
Johor pays RM 4 million for treated water annually, the revenue for selling raw water to Singapore is RM 2 million annually. The Chief Minister of Johor State Abdul Ghani said it is a deficit deal.
He said, for a long time, Singapore buys cheap raw water and sells high. They sell S$20 per 1,000 gallons treated water to shipliners. Singapore buys the same amount of raw water with three cents in Malaysian currency.
He agreed with Malaysian Prime Minister Mahathir Mohamad that Singapore could terminate the existing agreement anytime because Malaysia too needs a lot of water.
Price war has become more tense since Singapore declared the production of Newater (which recycled from household used water) and its plans to buy water from Indonesia as strategies to diversify its water resources. .
Two water agreements between Malaysia and Singapore, which signed in 1961 and 1962 will be expired 2010 and 2061 resoectively. Water pricing, is one of throny issues in the outstanding bilaterial packages issues, other issues include the use of Malaysian airspace by Singapore airforce, withdrawal of Central Provident Fund by West Malaysian.
The next talk on the outstanding bilateral issues will be held in Malaysia but the date is not fixed yet.
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