Thursday, July 05, 2018

Johore wants to increase price of water by 1600%

The Johore State Government wants to increase the price of water by 1600%. This sounds a very big increase. Actually, it is 16 times.

Under the 1962 water agreement, Singapore draws 250 million gallons of water a day from the rivers in Johore and pays 3 cents (RM) per 1,000 gallons.

The cost is RM 7,500 per day or RM 2,737,500 a year or S$ 925,000 a year. OK, say $1 million a year.

If Johore wants to increase the price by 16 times, we will be paying $16 million a year.

Does this sound like a lot of money? We spend $16 million to host the Trump Kim Summit for 2 days. This is the same amount as the water that we take from Johore for on year.

Did I get the calculation correct?

https://www1.mfa.gov.sg/SINGAPORES-FOREIGN-POLICY/Key-Issues/Water-Agreements

Can someone check my calculation?

Tan Kin Lian

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