In the spirit of bilateral cooperation, but without prejudice to our position that Malaysia has lost the right to be reviewed, we were ready to listen to and discuss Malaysia`s proposals, based on the need for a balance of benefits for both sides. Malaysia then made proposals for a new price for raw water. Finally, in October 2002, Malaysian Prime Minister Dr Mahathir Mohamad told Prime Minister Goh Chok Tong that Malaysia wanted to “separate the water issue” from the other elements of the package. Prime Minister Goh told Prime Minister Mahathir that as Malaysia wants to end the package`s approach, Singapore needs to look at water and other issues because of their distinct advantages. We are therefore negotiating these issues in good faith with Malaysia in order to find a practical, lasting and mutually beneficial solution. This agreement, the 1990 Water Agreement, led to the construction of Lake Linggiu, completed in 1993, to ensure the sustainable withdrawal of our demand for 250 million gallons of raw water per day from the Johor River. On June 25, 2018, Malaysian Prime Minister Mahathir Mohamed declared his intention to renegotiate the agreement with Singapore, believing that the low price at which water is exported to Singapore has led to a significant loss of Malaysia`s turnover. [4] On Tuesday, during a parliamentary debate, Malaysian Foreign Minister Saifuddin Abdullah said that if Singapore does not renegotiate the agreement, Malaysia will seek international arbitration. The Malaysian government said the agreements were signed in another era and the price is expected to rise. He cites the example of water that China has sold to Hong Kong in the past, which was about US$5.8 per 1000 imperial gallons (4500 L). [2] However, this price comparison is not directly applicable, since, while Hong Kong bore the costs of infrastructure construction and China the costs of maintaining Hong Kong`s water supply, Singapore bore all the costs related to the Johor reservoirs, dams, pipelines, facilities, equipment, etc., and in Singapore, all costs related to the operation and maintenance of the infrastructure. Comments by the AMF spokesman in response to media inquiries on the comments of Prime Minister Dr Mahathir Mohamad to Bloomberg on June 25, 2018 about the 1962 water agreement – Link Singapore and Malaysia have a long-standing conflict over water supply. Malaysians have built two large water treatment plants that source water from the Johor River upstream of Singapore`s PUB-Johor River Waterworks….