If Malaysia had exercised the right to check the price of water in 1987, as stipulated in the 1962 water agreement, Singapore could have made various investment decisions to develop the Johor River, including the Linggiu Dam. The Linggiu Dam is a regulatory reservoir. In times of drought or flooding, more seawater hangs along the Johor River. Rainwater collected from the Linggiu Dam is released into the Johor River to supplement its river or recede seawater, allowing a reliable collection of raw water from the Johor River. PUB and its counterpart in Johor, Badan Kawalselia Air Johor (BAKAJ), have a close relationship. PUB and BAKAJ meet regularly and conduct useful discussions on current weather trends, water levels at various dams and dams in Johor and plans for the development of water resources. PUB and BAKAJ are also working closely together on the Johor River Dam project. The Johor River Dam, in operation since August 2016, helps prevent the use of saline and improves the reliability of the Johor River water supply, benefiting Singapore and Johor. In 1994, the Linggiu Dam was built upstream of the Johor River and collects and releases rainwater. This allows seawater to be pushed back to the sea, which ensures that the river water is not too salty to be treated. It is operated by the Public Utilities Board (PUB) in Singapore.  In 1990, PUB and the Johor State Government signed an agreement to build the Linggiu Dam to increase the yield of the Johor River to allow a reliable abstraction of the full CLAIM of PUB at 250 million gallons per water.
This agreement completed the 1962 water agreement. The first water agreement was signed in 1961 and expired in August 2011. Under the agreement, Singapore had the right to purchase an unlimited amount of raw water from the Tebrau and Scudai rivers. In return, the agreement provided that Singapore would provide Johor with 12% of the water we import. When the 1961 water agreement expired on August 31, 2011, Singapore handed over to the Johor State Government the Gunong Pulai and Scudaï water station and the Pontian and Tebrau pump houses, which we had operated and maintained at our own expense. These facilities were given to them free of charge and in impeccable order. Malaysians have built two large water treatment facilities that source water from the Johor River upstream of the PUB-Johor River water station in Singapore. The abstraction of Malaysia`s Johor River water treatment facilities, in addition to Singapore`s claim of 250 million gallons per day, has led to the exclusion of the entire abstraction exceeding the sustainable yield of the Johor River. We also thought long and hard about the performance and water quality of the Johor River.
PUTRAJAYA — Malaysia will present a revised price for raw water sales in Singapore, while prime minister Mahathir Mohamad`s government is advancing efforts to change the terms of a semi-annual agreement between neighbors. On August 31, 2011, the 2011 water contract expired and the hydropower plants and facilities were handed over to the Johor State Government. The shed included the skudai and Gunung Pulai water treatment facilities, built by the Public Utilities Board and managed by them for 50 years, as well as two pump houses in Pontian and Tebrau.  If Johor is unable to meet its obligations to provide 250 million gallons of raw water under the water agreement, this will have serious consequences. This would undermine the inviluence of the 1962 water agreement, it would seriously damage our bilateral relations.