There are gross misconceptions about how Singapore is mistreating Malaysia in the buying and selling of water between the two countries.

Singapore does not make any money from buying and selling water from Malaysia. It buys untreated water at 3 sen per 1,000 gallons from Malaysia and sells the treated water at 50 sen per 1,000 gallons back to Malaysia.

The figures however do not include the water treatment costs borne by Singapore which works out to RM2.40 per 1,000 gallons.

This is a surprising charitable and neighbourly act, considering that in Singapore, we have to put up with water rationing every few months and pay RM1.17 compared with the 50 sen charges for Johor.

Singapore is, therefore, absorbing the water treatment cost of RM1.90 per 1,000 gallons. Johor in turn sells the treated water to its consumers at RM3.95 per 1,000 gallons.

The Johor government is making a healthy profit of RM$3.45 per 1,000 gallons. That's why it chose not to review the price of the water sold when the terms were reviewed after 25 years, in 1986 and 1987 respectively.

In fact it's such a good deal that Johor currently buys 37 million gallons per day (mgd) of treated water from Singapore, well above the 17 mgd Singapore is obliged to sell.

However, Singapore contributes to subsidised water to Johor because we are a good neighbour. So please clear the facts because the story of how Singapore is mistreating Malaysia over the water issue has gotten murky.

For a clearer picture, can we ask for an official statement from the Johor state government if it is losing money selling and buying its water from the republic?