Singapore is not in any talks with Malaysia regarding renegotiations on water prices, the country's Deputy Prime Minister Teo Chee Hean was reported as saying today by TodayOnline.

Teo was speaking to the media during a tour of the Changi Water Reclamation Plant.

He was asked whether Malaysia had approached Singapore officially regarding the water issue, and whether the country is in talks with Malaysia.

Teo said "no" but did not elaborate, said the report.

Prime Minister Dr Mahathir Mohamad has on several occasions spoke of Malaysia’s intention to review the 1962 Water Agreement and the possibility of increasing the price of raw water supplied to Singapore by tenfold.

Commenting on the issue for the first time, Singapore Prime Minister Lee Hsien Loong had on Aug 19 said, “The water agreement is sacrosanct. We must proceed strictly in accordance with its terms.”

Lee said that in his speech at the city-state’s National Day Rally.

The 1962 Water Agreement was the second water pact signed by the republic with Johor.

Under the agreement, which will expire in 2061, Singapore is entitled to draw 250 million gallons of raw water from the Johor River daily at 3 sen (S$0.01) per thousand gallons.

In return, Johor is entitled to receive treated water up to five million gallons – or two percent of the water supplied to Singapore – at 50 sen per thousand gallons.

- Bernama