Lol, not directly, the NEWater after being treated is plumbed back into the reservoirs, so it doesn't go right into the watersupply. A desal plant is in the works as well. But the contract with malaysia is still there for another 50 years or so.
Even after treating sewage and desal, there's still a need to import water from malaysia because its still not quite enough. But at least back home, we got to play with waterguns and water balloons, there's no restriction. I used to water my banana plants straight from the tap, the only restriction being cost.
Of course there was that whole stint with government people drinking bottled NEWater infront of the media, the public didn't take to kindly to having to have to drink recycled water either, but being the nanny state singapore was and still is, the citizenry didn't really have much of a choice. I used to have many boxes of those pre-bottle NEWater bottles, and they didn't really taste different from regular tap water. Kudos to the water treatment guys for that.
Personally i have no problems with drinking recycled water, but, it is energy intensive as well. Reverse osmosis membranes aren't cheap to procure and cheap to maintain, and pretty energy hungry as well. Thats just one part of the process used to ensure that poo and pee doesn't get into the end product. Then there's heat sterilisation and a whole lot of other processes that make this water potable.
That trans tasman pipeline thingy does seem like a cheaper alternative. But seriously, if there are so many viable alternatives, why not just adopt all? Use the pipeline, use desal, use rain/reservoir water and use recycled water too.