WATER CONCESSION AND HYDRO HEGEMONYIN MALAYSIA-SINGAPORE RELATIONS:THE QUESTION OF SOVEREIGN RIGHTS, ASYMMETRIC INTERDEPENDENCE AND POWER STRATEGIES

Abstract

The 1962 Water Agreement between the State of Johor and the Government of Singapore, then a British Crown Colony, has long been a source of tension in Malaysia-Singapore relations. It reflects deeper contestations over sovereign rights, asymmetric interdependence, and divergent strategic priorities. Under this agreement, Johor granted Singapore the right to extract up to 250 million gallons of raw water per day at a fixed rate of RM0.03 (SG$0.01) per 1,000 gallons. While initially justified as a developmental concession during the decolonisation period, this rate is now widely regarded by Malaysian policymakers as economically inequitable and as undermining resource sovereignty. The issue is further complicated by Singapore’s resale of treated water to Johor at RM0.50 per 1,000 gallons, significantly higher than the original rate, thereby exacerbating public dissatisfaction and highlighting the uneven terms of exchange. This study examines the political economy of water pricing concessions in Malaysia-Singapore relations through the analytical lens of hydro hegemony and cost-benefit analysis, employing a qualitative methodology based on document analysis and international case comparison. The research situates the 1962 agreement within broader discourses on transboundary water diplomacy, drawing insights from other geopolitical cases such as the Jordan River (Israel and Palestine), the Indus Waters Treaty (India and Pakistan), the Mekong River Commission, and the Great Lakes Agreement (United States and Canada). The findings indicate that Malaysia bears disproportionate economic costs due to outdated pricing structures, while Singapore retains strategic advantages through legal and infrastructural leverage. The study concludes by recommending a revision of the bilateral framework toward a more flexible, cost-reflective, and ecologically balanced model aligned with international norms in transboundary water governance.