KUALA LUMPUR (Dec 2): The government has decided to maintain the current price of raw water supplied to Singapore, as Malaysia may fall short of achieving the target of "zero dependency" on treated water from the city state by 2030.

Citing growing demand for water driven by rapid expansion of data centres and semiconductor industries in Johor, Deputy Energy Transition and Water Transformation Minister Akmal Nasrullah Mohd Nasir stated that this necessitates continued reliance on Singapore.

"After discussions between the ministry and the menteri besar of Johor in October, it was decided that the revision of raw water rates does not need to be negotiated at this time," Akmal said during an oral question-and-answer session in the lower house of Parliament on Monday.

However, Akmal emphasised that the government will continue to prioritise negotiations and consider the views of stakeholders.

Currently, under the 1962 Water Agreement, Singapore is entitled to draw up to 250 million gallons per day (mgd) of raw water from the Johor River at a rate of three sen per 1,000 gallons. In return, Johor is entitled to 5 mgd of treated water from Singapore at a rate of 50 sen per 1,000 gallons.

In 2018, then prime minister Tun Dr Mahathir Mohamad called the price of three sen per 1,000 gallons "ridiculous", and expressed an intention to renegotiate the terms of the agreement with Singapore.

On Monday, Akmal said that Johor currently relies on Singapore for an average of 16 mgd of treated water daily — exceeding the stipulated 5 mgd — costing the state government approximately RM180,000 annually.

"As a comparison, Malaysia’s treated water rate stands at RM1.80 per cubic metre, while the treated water we purchase from Singapore is priced at 11 sen per cubic metre. There is a form of reciprocity," Akmal said.

Thus, he further stated that addressing water dependency on Singapore is essential before Malaysia can revisit the water supply agreement with the city state.

To achieve this, the government has introduced several projects under the "zero dependency" initiative, aiming to enhance the storage capacity of raw and treated water and ensure Johor can meet its water needs independently in the long term.

Key initiatives include the construction of a riverside water reservoir at Sungai Johor (Sungai Lebak), a barrage at Sungai Sedili Besar, and water treatment plants such as Layang 2 and Semangar 3.

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