On November 4 2023, Singapore and Malaysia signed a updated water pact that revises the 1962 Johor River Water Agreement. The arrangement continues to allow Singapore to draw up to 250 million gallons of raw water each day from the Johor River, while preserving the original 99‑year lease that runs until 2061.
The agreement was announced jointly by Singapore’s Ministry of Sustainability and the Environment and Malaysia’s Ministry of Energy and Natural Resources.
Pricing and Financial Terms
The renewed deal raises the price Singapore pays for raw water from Johor. Under the 1962 terms the charge was 3 sen per 1,000 gallons.
The new rate has not been disclosed in full, but officials said it reflects current operational and infrastructure costs. Malaysian Minister of Energy and Natural Resources Nik Zmi Nik Ahmad described the adjustment as a fairer arrangement that better reflects the value of the water resource and the cost of maintaining the supply system. Singapore’s Minister for Sustainability and the Environment Grace Fu said the revised terms acknowledge the long‑standing partnership between the two countries and the need for sustainable water management.
Infrastructure Cooperation
The pact includes provisions for joint investment in water treatment facilities and pipeline upgrades. Both governments will share the cost of a new water treatment plant in Johor, slated to become operational by 2028.
This plant is expected to increase raw water capacity by 20 percent, helping meet growing demand in both Johor and Singapore.
Historical Context
The original 1962 Johor River Water Agreement was signed between the Federation of Malaya and the state of Singapore, two years before Singapore gained independence. It granted Singapore the right to extract up to 250 million gallons of raw water daily from the Johor River. In exchange, Singapore supplies treated water back to Johor at a rate of 50 sen per 1,000 gallons.
The agreement runs for 99 years, expiring in 2061. Water has long been a sensitive issue in bilateral relations; Malaysia has periodically sought to renegotiate the original price, which it viewed as too low.
In 2018 then‑Prime Minister Mahathir Mohamad labelled the 3 sen rate “ridiculous” and threatened to raise it. Singapore has consistently maintained that the 1962 accord is a binding international treaty. The 2023 renewal avoids a prolonged dispute by introducing mutual concessions.
Environmental Safeguards
Beyond pricing, the renewed agreement contains environmental commitments. Both countries will monitor water quality in the Johor River catchment area.
Singapore will provide technical assistance for pollution control and watershed management in Johor, while Malaysia will enforce stricter regulations on industrial discharge and agricultural runoff upstream. Grace Fu said these measures protect the long‑term viability of the water source for both communities. Nik Zmi added that sustainable management of the Johor River basin is a shared responsibility that benefits Malaysians and Singaporeans alike.
The pact also creates a joint committee to review water quality data and address emerging issues.
