There has been "talks" on including water as one of the components of Total Defence. This is due to the water supply problems that we (Singapore) has with Malaysia.
Our first water supply treaty with Malaysia will end somewhere in 2061, and the talks with Malaysia about continuing and increasing our water supply has not got anywhere.
We have to look to other means of getting our water supply such as from desalination plants. The problem is not if there will be supply, but the cost that would have to be paid. We have to find the most economic cost for the water that our nation and its people can afford with ease.
Currently, it costs Singapore RM 2.40 to treat 1,000 gallons of water, which it sells to Johor at RM 0.50 per 1,000 gallons. Johor in turn sells the water at RM 3.95 per 1,000 gallons.
Under the existing pacts, Singapore is required to sell only 15 mgd to Johor at RM 0.50 per 1,000 gallons. Johor is not obliged to buy any treated water from Singapore. But it bought an average of 37 mgd during 1993 to 1997. This is evidence that Johor is benefiting from buying water from Singapore.
It is also reported from Malaysia that everytime Malaysia wants to raise the price of raw water, which is currently 3 sen per 1,000 gallons, Singapore would almost always increase the price of the treated water that it sells to Johor.
Everybody would know this simple principle of that when the price of the raw material increases, the end product, in this case, treated water, would also increase. So, what's the fuss by Malaysia?
more coming soon... for any comments, feel free to e-mail me at lpkor@excite.com