On July 29, 1960, the Johor agreement was signed between the British government and the government of the Federation of Malaya, which would later become Malaysia. The agreement was named after the state of Johor, which is located in the southern part of the Malay Peninsula.

Under the Johor agreement, Johor agreed to transfer control of the land and water within a three-mile limit of Singapore to the government of Singapore. In return, Singapore agreed to pay Johor an annual sum of $1 million, which was to be reviewed every ten years.

The agreement was significant for several reasons. First, it allowed Singapore to expand its territory and control over its surrounding waters, which were crucial for its economic development. Second, it provided a stable financial base for Johor, which was then struggling economically.

However, the Johor agreement was not without controversy. Some Malaysians felt that it was unfair for Johor to give up control of its water and land to Singapore. Additionally, the annual payment of $1 million was seen by some as inadequate compensation for the transfer of control.

Despite the controversy, the Johor agreement remained in effect until 2019 when Malaysia decided to terminate it. The decision was made in response to Singapore`s plans to build a port in the waters that were previously under Johor`s control.

In conclusion, the Johor agreement was an important milestone in the history of Singapore and Malaysia. It allowed Singapore to expand its territory and control over its surrounding waters and provided a stable financial base for Johor. However, the agreement was not without controversy, and its termination in 2019 demonstrates the ongoing tensions between the two countries.