The first water agreement was signed in 1961 and expired in August 2011. Under this agreement, Singapore had the right to purchase an unlimited amount of raw water from the Tebrau and Scudai rivers. In exchange, the agreement provided that Singapore would provide Johor with treated water for 12% of the water we imported. When the 1961 water agreement expired on 31 August 2011, Singapore handed over to the Johor State Government the Gunong Pulai and Scudai water companies as well as the Pontian and Tebrau pumping houses that we had operated and maintained at our own expense. These facilities were handed over to them free of charge and in good condition. Yes. Under the 1962 water agreement, we continue to buy 250 million gallons of raw water per day in the Johor River. In return, we are required to supply Malaysia with treated water daily up to 2% (or 5 mgd) of the water supplied to Singapore. From 1998 to 2003, Singapore and Malaysia were in a difficult phase of negotiations on a number of issues, including the price of water. A brief presentation of the negotiations can be found in a statement by Professor S. Jayakumar, Minister of Foreign Affairs, to Parliament on 23 January 2003, and in this publication. The 1962 water agreement provided for a review of prices after 25 years. Specifically, in 1987, there was the right to review the price jointly.

However, Malaysia did not exercise this right in 1987. Since the right of verification has disappeared, neither Singapore nor Malaysia can unilaterally change the price of water sold in Singapore. At Malaysia`s request, Singapore has provided Johor with treated water that goes beyond Johor`s claim under the 1962 Water Agreement. . . .