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http://microeconomicsites.blogspot.sg/2012/10/water-shortage-in-england.html

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https://www.pub.gov.sg/watersupply/watertariff

Water for general usage is made a Monopoly by the government of Singapore
As seen there is multiple barriers to entry to restrict entry of new firms to the water industry.
Legal restrictions - Government awarded PUB as the sole firm the right to supply water for general usage in Singapore.

http://www.straitstimes.com/singapore/spore-supplying-more-treated-water-to-malaysia

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Demand and Supply
(Equilibrium)
Elasticity / scarcity
Substitutes consumers - buy bottled water bottled from other countries, NEW water.......

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Singapore's Prime Minister has warned citizens of the urgent need to conserve water, a timely reminder of the crisis brewing on the country's border. By Tan Zhi Xin
Linggiu Reservoir sits in Johor, Malaysia but is built and run by the Singaporean authorities. This quiet man-made pool has a direct impact on the amount of water Singapore can get from the Johor River, a vital waterway for the county's fresh supply. But due to climate change, Malaysia has been experiencing frequent dry spells, and the level at the reservoir has dropped to an unprecedented level. The consequence is clear - Singapore's water supply is at stake.

Just recently, Prime Minister Lee Hsien Loong posted an image of Linggiu Reservoir at 25% capacity on his Facebook, along with a comment urging people to conserve water. The supply is " still at the mercy of the weather," he warned. But one resident explained acceptance of this enormous issue was a problem saying " I know there is a possibility of a water shortage but because we have not come close to water rationing for several decades, it just does not seem real." But ignoring this pending crisis could bring ASEAN's most developed nation to its knees.

The Prime Minister clearly recognises the danger ahead and during his time in power has worked hard on moving Singapore towards attaining water sufficiency. Sadly he has not done enough, mostly because there is not enough that can be done.
Exploring alternative sources
Singapore was already toying with the idea of recycling water as early as the 1970s. However, the first experiment failed and the pilot treatment plant closed down after only a year due to high costs and technology issues. It was not until much later, in 1998, that the Singapore Water Reclamation Study successfully determined the suitability of reclaimed supplies as a source of raw water.

When NEWater, the brand name of reclaimed water, was officially launched in 2003 it was described by the former United Nations Secretary-General Ban Ki-Moon as the "elixir of life". However many people, especially the older generation, scoff at NEWater for being "shit water" and avoid using it. But even with its low consumption rates, NEWater continues to be a major source of raw water for Singapore, providing up to 30% of its needs.

Today, Singapore has four "national taps." These are water from the local catchment area, imported water, NEWater, and desalinated water. And diversifying to four options has been important for promoting resource security but the country, and its residents have grown callous as a result. In 2011, Singapore decided it could afford to let its water agreement with Malaysia expire because it had achieved self-sufficiency. However, disappointing as it may be, the truth is that this sense of security is false. And something must be done.

Although the four taps have helped mitigate water scarcity, Singapore remains vulnerable. Today, the island nation still relies heavily on imported water to meet almost 60% of is needs. And this is problematic. The reliance on NEWater and desalinated water, in turn, creates another problem - the need for energy. While these two sources alone are expected to make up 80% of Singapore's water needs in 2060, both are highly energy-intensive. And as well as being short on water, the natural resource-poor country is short on power too.
Preparing for the future
Singapore is actively making preparations to avoid a scenario whereby it has to choose between water and energy. Currently, the Public Utilities Board (PUB) is trying to reduce reliance on fossil fuel; producing energy through biogas at water reclamation plants. Initiatives are also increasing solar energy production, and investing in research and development to lower the energy consumption of desalination plants.

Nonetheless, it is an undeniable fact that Singapore is a small country without natural resources. As water becomes an increasing issue in politics around the world, relations between Singapore and its neighbour Malaysia could become strained on the issue of water collection. " Malaysia has made veiled threats that it might cut off the supply of water or repudiate the water agreements when relations became strained along other fronts," says Jackson Ewing, Director of Asian Sustainability at the Asia Society.

So no matter which direction Singaporean authorities turn, they are constrained. The country could invest heavily in technology to reduce reliance on energy but at the end of the day, the desalination process is very expensive. Meanwhile, NEWater is stigmatised regardless of the government's effort to commercialise it; and Singapore does not have sufficient land to rely on rainfall as a water source. Relying on its neighbour Malaysia is also a difficult proposition.

As such, it is critical to conserve water; both for the good of the people and the country's regional relations. Reducing consumption is the first step in ensuring sufficiency and security, and this is an important message for the government to convey to the public. They must listen. There is no other choice for Singapore to survive.

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Singapore's biggest threat? The water crisis at its door

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Singapore's Prime Minister has warned citizens of the urgent need to conserve water, a timely reminder of the crisis brewing on the country's border. By Tan Zhi Xin Linggiu Reservoir sits in Johor, Malaysia but is built and run by the Singaporean authorities.

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"Linggiu Reservoir sits in Johor, Malaysia but is built and run by the Singaporean authorities. This quiet man-made pool has a direct impact on the amount of water Singapore can get from the Johor River, a vital waterway for the county’s fresh supply. But due to climate change, Malaysia has been experiencing frequent dry spells, and the level at the reservoir has dropped to an unprecedented level. The consequence is clear – Singapore’s water supply is at stake."

-According to Malaysia, they have been facing a shortage of water due to climate changes such as frequent dry spells. Our water supply would be vulnerable, threatening Singapore's water security and economic advancement. Due to the fact that demand exceeds supply, water is scarce. We would have to make choices and come up with an alternate solution.

-NEWater is one of Singapore's water sustainability strategy. It is high grade reclaimed water. It treat used water that is further purified using advanced membrane technologies and ultra-violet disinfection. It is clean and safe to consume.

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Article 2 - Demand and supply of bottled water in Singapore - Perfect competition. 

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Article 2 - Demand and supply of bottled water in Singapore - Perfect competition. 

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"Consumers splashed out about S$134 million on still bottled water in 2015, up 24 per cent from five years ago, based on data from research firm Euromonitor International."

- There is a statement saying "A situation where people are willing to pay as much as a thousand times more for bottled water when clean, drinkable tap water is readily available at a nominal charge" shows that there is a demand in bottled water since there is an entire range of quantities consumers that are willing and able to buy at different prices, in a given time period, ceteris paribus.

- The reason for the demand is because of the convenience of bottled water and that it is safe to drink. "A 600ml bottle of drinking water usually retails for about S$0.50 to S$1. According to PUB, the same amount of tap water only costs 0.1 cent, making it 500 to 1,000 times cheaper than bottled water." the difference in the cost can show us that bottled water in demand is high, as the price range between water and bottled water has a huge gap.

- To respond to the demand of the market, supplement of bottled water increased from year to year, resulting in the increase of sales value throughout the years, from $98.3 million in 2007 to $133.8 million in 2015.

Agreeing to the analysis from Article 1, water is a necessity, so buyers would still need to consume water whether the price increase or decrease, however the use of bottled water may add on to the carbon footprint.

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How did bottled water grow into a multimillion-dollar industry in a country with perfectly safe drinking water from the tap?

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SINGAPORE: In a country where tap water quality far exceeds minimum World Health Organization (WHO) and US Environmental Protection Agency standards, it may come as a surprise to some that bottled water is a booming, multimillion-dollar business.

Consumers splashed out about S$134 million on still bottled water in 2015, up 24 per cent from five years ago, based on data from research firm Euromonitor International.

While some of these bottled water products are derived from mineral-rich springs, a significant number - including market leaders like F&N's Ice Mountain and Coca-Cola's Dasani - are sourced from public water supplies. These two brands made up more than half of the bottled water sales volume in Singapore last year, according to Euromonitor data.

When contacted, F&N confirmed that Ice Mountain sold in Singapore "is sourced and packed in Malaysia from tap water", while Coca-Cola said that Dasani produced for the Singapore market comes from "the local water supply at (its) facility in Malaysia". Both companies also said they have multiple purification processes in place, which distinguishes their "pure drinking water" from tap water.
ADDICTED TO CONVENIENCE: IS BOTTLED WATER A NECESSARY EVIL?
A situation where people are willing to pay as much as a thousand times more for bottled water when clean, drinkable tap water is readily available at a nominal charge has left some environmental advocates and experts scratching their heads.

Some, like Ambassador-at-Large Professor Tommy Koh and the Lee Kuan Yew School of Public Policy's (LKYSPP) Assistant Professor Leong Ching said that people may not be sufficiently aware of the tap water origins of some bottled water products. Others, like Nanyang Technological University's (NTU) Ng Wun Jern and National University of Singapore's (NUS) Professor Ong Choon Nam believe that people consume bottled water primarily out of convenience.

A 600ml bottle of drinking water usually retails for about S$0.50 to S$1. According to PUB, the same amount of tap water only costs 0.1 cent, making it 500 to 1,000 times cheaper than bottled water. This price differential, while significant, is not sufficient to motivate consumers to move more to tap water, said Prof Ng, who is the executive director of the Nanyang Environment & Water Research Institute at NTU.

The relatively low retail cost of bottled water also appears to be a small price to pay for the convenience of not having to carry a bottle around to be refilled, said Prof Ong, director of the NUS Environmental Research Institute. "It's hard to convince people that they don't need to be spending the money they spend on bottled water, because (at) S$1 a bottle, that's cheap to many."

The result is a "use-and-throw" bottled water habit. This is "a price that society pays for being highly mobile and always on the move", said Mr Melvin Leong, associate director of Energy and Environment at Frost and Sullivan, adding that the need for convenient and immediate access to water is a universal one, regardless of a country's tap water quality.

In 2014, San Francisco became the first city in the US to ban the sale and distribution of plastic water bottles. (File photo: AFP/Justin Sullivan)

In addition, this S$1 price, according to Singapore Management University's Seshan Ramaswami, is not usually referenced against what tap water would cost, but what a soft drink or iced tea would cost in a hawker centre or food court, and "bottled water (in these instances) is often the cheapest, and healthiest of all drinks".

The Associate Professor of Marketing Education also noted that apart from factors like convenience and price, bottled water also appeals to short- or long-term foreign residents, who "just do not have knowledge of, or faith in the potability of tap water anywhere else, including Singapore".

Meanwhile, Euromonitor analyst Andrea Lianto said that in spite of awareness of the potability of tap water here, some consumers have become more concerned about health issues surrounding tap water consumption, such as "the hygiene of the water ducts and pipes".

When these concerns were relayed to PUB, it told Channel NewsAsia that Singapore has "a comprehensive and rigorous maintenance, servicing and monitoring programme which covers the entire water system, from reservoirs to waterworks, through the distribution network, to the end consumer's tap". This ensures that the tap water is "clean and wholesome", it said.

PUB also added that the pipes used in Singapore's potable water supply "are primarily cement-lined ductile iron and steel water mains" that comply with international standards.
ECOLOGICAL COSTS OVERLOOKED

Market value of the still bottled water industry in Singapore. (Data source: Euromonitor International)

In 2009, Prof Koh, who was the former chairman of the Governing Council of the Asia Pacific Water Forum, and Asst Prof Leong, who is the deputy director of LKYSPP's Institute of Water Policy, tried to start a campaign "to persuade Singaporeans to drink tap water instead of bottled water".

Their arguments, which were published in PUB's Pure magazine in 2009, ranged from common sense reasoning - "tests (...) have shown that expensive bottled water is no better than tap water" - to appeals based on environmental grounds, highlighting the plastic and energy required to manufacture and transport bottled water.

For example, 1.5 million barrels of oil are used each year to make bottles for the water industry in the US alone. This is enough to power 100,000 cars for a year.

But seven years on, such science-backed appeals have failed to stem the rise of retail and institutional sales of bottled water in Singapore.

In a joint email response to Channel NewsAsia, they said one possible reason has to do with the profit motive of those in the business of promoting bottled water consumption, such as restaurants. Although PUB has said that it "encourage(s) food outlets and restaurants to make tap water available for customers", and that members of the public should feel free to ask for tap water, a considerable number of restaurants here still do not serve it.

POTENTIAL SOLUTIONS Providing more drinking water fountains
With little incentive on the part of businesses to curb lucrative bottled water sales, and consumers remaining either unaware or unmoved, water researchers and environmental advocates said more can be done to dispel myths about tap water and bottled water, and to make it easier for the public to choose tap water.

Imposing clear bottled water labelling requirements

One practical solution, according to Prof Ong and Prof Ramaswami, is to install more drinking water fountains. This will help consumers overcome the "yuck factor" of having to fill water bottles from taps in toilets.

"Encouraging public toilet operators to provide drinking water fountains outside the toilet would help a lot. Even if the water in the toilet taps and water fountain taps were from the same source, the simple physical separation and design as a water fountain rather than a toilet sink tap would help convey the perception that the water was safe to drink," said Prof Ramaswami.

Bottled water sold in Singapore - whether locally packaged or imported - is subject to the Agri-Food and Veterinary Authority of Singapore's (AVA) routine surveillance and sampling to ensure that food safety standards are met. But a check with AVA revealed that bottled water manufacturers are not obliged to clearly label the water's source. More detailed labelling, said Prof Koh and Asst Prof Leong, "may make a difference" to changing consumer behaviour.

Dispelling myths about tap water and bottled water

At present, bottled water must only be labelled with the product name - usually, "drinking water" or "distilled water", the name of the country of origin, the name and address of the Singapore importer or the Singapore manufacturer, and the net quantity, said AVA.

Brand leaders in Singapore's bottled water market, by sales volume. (Data source: Euromonitor)

Prof Ng acknowledged that there are some people who dislike the taste of tap water. He said that in these instances, a "more intensive programme to educate the public on the 'safeness' of water and why it tastes the way it does and how such tastes can be modified in the home by the consumer - if necessary - can help move consumers to tap water".

Meanwhile, Prof Ramaswami suggested running an online campaign, "comparing bottled water to tap water, with lab certification results to show that tap water is as safe". He also said that "answering public concerns about pipes, tanks, and other ways in which potable water could be tainted before reaching households" in an online campaign or television programme would also help.

Changing corporate, institutional and personal behaviour

Reducing the carbon footprint in bottled water production
Another approach is to accept that bottled water is a fixture in our modern consumerist society and to find ways to reduce its environmental impact. Frost and Sullivan's Mr Leong said that existing technologies already allow for the "efficient production of plastic bottles that require less materials", and even edible "bottles", like the Ooho.

The Ooho is an edible water bottle made out of seaweed. (Photo: Skipping Rocks Lab/LinkedIn)

According to Coca-Cola, it has been working on various fronts, including reducing the weight - and hence plastic content - of its Dasani bottles, recycling water used in the production process and supporting plastic bottle recycling initiatives.

Lastly, experts said the Government can take the lead by imposing a tax on plastic, or changing procurement practices to stop the serving of bottled water in public sector entities and in schools.

"The chairman of PUB, Tan Gee Paw, has a good pre-commitment strategy. We have seen him at public talks. When he is served bottled water, he just doesn't drink it. No fuss, no big statements, it's just a choice," said Prof Koh and Asst Prof Leong.

"All Government ministers can do this. As the culture evolves, we in Singapore serve water in a jug and a glass because our water is good enough to drink straight from the tap."

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nanyang environment & water research institute

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Singapore's S$134m bottled water addiction

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How did bottled water grow into a multimillion-dollar industry in a country with perfectly safe drinking water from the tap? Share on Facebook Share on Twitter Share via E-Mail SINGAPORE: In a country where tap water quality far exceeds minimum World Health Organization (WHO) and US Environmental Protection Agency standards, it may come as a surprise to some that bottled water is a booming, multimillion-dollar business.

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Article 1 -Shows Demand/Quantity equilibrium.

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Article 1 -Shows Demand/Quantity equilibrium.

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"Johor’s population is projected to grow to as much as five million in 2030, doubling water demand. Discharge from sewage treatment plants, agro-based factories, livestock farming, estate agriculture and domestic sewage all affect the waters of Johor."

-As shown is determinants of demand which are increased in a number of buyers in the market. Thus leading to increasing in overall market demand.
-Additionally, with discharge from external sources, cost of filtering the water for household usage would become more costly, thus displaying determinants of supply: Factor prices as increase in cost of production incurred, producers are less willing to sell at all price levels, this would, in turn, lead to decrease in overall market supply
-If ceteris paribus, the quantity demanded is more than quantity supplied, it will lead to a shortage thus upward pressure on price thus equilibrium is formed where at a higher point along the supply curve

Additionally, as water is a necessity, it would be more price inelastic, thus change in buyers would not be heavily affected

Generally, Water supply is a Monopoly due to only one firm(Government selling the supply)
However in Water for consumption its Monopolistic competition

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How Johor's growing water woes could affect Singapore

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Since its founding, Singapore has depended on water imports from neighbouring catchments in Johor, Malaysia, through agreements reached in 1961 and 1962. Over time, Singapore improved its domestic catchment management, created more efficient water-use systems, and brought des