The initiative aims to reduce reliance on imported treated water and support the state’s growing population and industries.

Malaysia is allocating over RM5 billion (S$1.5 billion) to construct three reservoirs and three water treatment plants in Johor, with the goal of achieving self-sufficiency in treated water within five years. This investment is part of a broader strategy to support industrial expansion and population growth.

The reservoirs, to be established near the basins of Sungai Johor, Sungai Pontian, and Sungai Sedili, will cost more than RM1.5 billion. Alongside them, new treatment facilities—amounting to RM3.5 billion—will increase Johor’s treated water production capacity by 41 per cent to 3,061 million litres per day (MLD).

Johor’s state executive councillor for works, transportation, and infrastructure, Mr Mohamad Fazli Mohamad Salleh, highlighted that the plan aligns with the state’s vision of eliminating dependence on imported treated water from Singapore beyond 2030. It also aims to accommodate rising industrial demand, particularly in the Johor-Singapore Special Economic Zone (JS-SEZ).

The Malaysian federal government will finance the reservoir projects, while the Johor state government, through water operator Ranhill SAJ, will fund the treatment plants. Additionally, Ranhill SAJ will construct two further treatment plants with a combined capacity of 210 MLD to meet current demand. The operator currently manages 46 water treatment plants, 724 reservoirs, and a vast pipeline network across Johor.

Under a longstanding agreement valid until 2061, Johor supplies raw water to Singapore at a rate of three Malaysian sen per thousand gallons and purchases treated water in return at 50 sen per thousand gallons. While importing treated water from Singapore remains cost-effective—at approximately 11 sen per cubic metre compared to the RM1.80 per cubic metre required for local treatment—Malaysia is prioritising self-sufficiency before reconsidering its future water supply strategy.

With Johor emerging as a data centre hub, the increased demand for water is a key factor in the state’s infrastructure expansion. By 2024, 17 data centres had been approved, requiring a daily supply of 59.06 MLD. The number of data centres in the state is expected to rise significantly by 2030, adding to concerns about the sustainability of local water and energy resources.

In response, the state government is encouraging industries to explore alternative water sources, including reclaimed wastewater, treated river water, and rainwater harvesting. The expansion of Johor’s treated water capacity is seen as crucial for sustaining economic growth, particularly in rapidly developing areas such as Iskandar Puteri, Kulai, and Pasir Gudang.

Johor aims to raise its water reserve margin from the current 10 per cent to 15 per cent, ensuring a stable supply for both industrial and domestic needs.