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. In short, in 1998, Singapore and Malaysia began negotiations for a “framework for broader cooperation”. During the 1998 financial crisis, Malaysia sought financial credit to support its currency; Singapore has proposed that Malaysia give its assurance of a long-term water supply to Singapore. After all, Malaysia did not need credits. The negotiations turned to other issues of mutual interest. Malaysia, in particular, has wanted the joint development of more land plots in Singapore in exchange for relocating its station away from Tanjong Pagar. In 1994, the Linggiu Reservoir was built upstream of the Johor River and collects and emits rainwater.
The sea water is thus brought back into the sea to ensure that the river water is not too salty to be treated. It is operated by the Public Utilities Board (PUB) of Singapore.  Malaysia has steadily increased its water price, and the case has become a sore point in relations. Singapore and Malaysia have a long-standing conflict over water supply. PUB and its Counterpart in Johor, Badan Kawalselia Air Johor (BAKAJ), enjoy a strong working relationship. PUB and BAKAJ meet regularly and conduct useful discussions on current weather trends, water levels on different dams and dams in Johor, as well as water resources development plans. PUB and BAKAJ also work closely with the Johor River Barrage project. In operation since August 2016, the Johor River Dam helps prevent salinity falls and improve the reliability of the Johor River`s water supply, benefiting both Singapore and Johor. In this document, the government said it costs Singapore RM2.40 to treat every thousand gallons of water.
By selling 50 ways, Singapore offers a subsidy of RM1.90 per thousand gallons of water. To ensure an adequate water supply in the colonial city of Singapore, which was rapidly modernizing in the 1920s, the Municipality of Singapore and Sultan Ibrahim of the State and Territories of Johor, in neighboring Malaya, signed an agreement in 1927 allowing Singapore to lease land to Johor and use its water free of charge. Singapore`s Municipal Water Department, headed by David J. Murnane, began importing raw water from Gunong Pulai in 1927 and filtered the water on December 31, 1929. Since then, several water agreements have been signed between two countries. In 1990, PUB and the Johor State Government signed an agreement on the construction of Lake Linggiu to increase the yield of the Johor River and allow reliable withdrawal of the entire PUB requirements to 250 million gallons of water per day. This agreement complemented the 1962 water agreement. The ministry`s comments are a response to Johor Menteri Besar Osman Sapian`s statement that the state plans to source treated water instead of relying on Singapore. . . .