Hyflux Price of Water

PRICE OF WATER

Water from Johore cost RM 0.03 per 1,000 gallons. Malaysia wants to increase the price 16 times. If Singapore agrees, it will be RM 0.50.

We have to add the cost of processing the water. PUB said RM2.40 a few years ago. The total cost will be RM2.90 or $0.97 per 1,000 gallon or $0.21 per cu meter.

Hyflux tendered $0.35 to produce the desalinated water. This is probably under-priced. The next higher bidder tendered for $0.52. The international benchmark is $0.50 to $0.80.

Perhaps Hyflux was trying to match the cost of water from Johore. It was a disastrous mistake.

What do household pay for water in Singapore? The answer - $2.74 per cu meter. See here
https://www.pub.gov.sg/watersupply/waterprice

PUB charge a higher price for consumption beyond 40 cu meters a month. Most households do not reach this level.

There was no need for PUB to accept Hyflux tender of $0.35 per cu meter and in the process destroy Hyflux.

Tan Kin Lian

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