.png)
THE government will invest RM5.33 billion in water and energy infrastructure under Budget 2027 to strengthen essential services, reduce flood risks and improve electricity supply resilience, Deputy Prime Minister II Datuk Seri Fadillah Yusof said.
Fadillah, who is also Energy Transition and Water Transformation Minister, said the allocation would support infrastructure upgrades and energy-efficiency initiatives while ensuring the benefits of development reached the public.
“Budget 2027 focuses on matters close to the people’s daily lives: more secure water supplies, lower flood risks, and more efficient and cleaner energy use,” the ministry said in a statement issued under his name on Friday.
Six flood mitigation projects worth RM336 million have been completed, while 82 others are being implemented according to schedule. New projects are also planned for 2027, including flood mitigation works in Kuching and integrated river basin development projects along Sungai Golok in Kelantan and Sungai Kemaman in Terengganu.
In Kelantan, the proposed Lebir Dam could reduce flood risks for 320,000 people and provide 337 million litres of raw water daily to 353,222 residents. Supporting measures include the construction of the Machang Water Treatment Plant and the replacement of ageing water pipes.
To improve water supply reliability, the RM2.5 billion second phase of the Non-Revenue Water reduction programme will replace 1,900km of critical ageing pipes. A 40-year bulk water supply agreement between Perak and Penang has also been signed.
The government will also upgrade ageing public sewerage systems on Pulau Tuba, Langkawi, Pulau Redang and Pulau Tioman, and develop a regional sewage treatment plant and sewerage pipeline network in Kuala Terengganu.
On electricity costs, the government has raised the monthly bill-protection threshold from 600 kilowatt-hours to 800kWh, a measure expected to benefit more than eight million domestic consumers, or up to 90 per cent of households.
In Sabah, RM204 million will be spent on STATCOM systems at the Dam Road and Segaliud main intake substations, while the Southern Link transmission project will continue to strengthen the state's electricity supply over the longer term.
The government will also allocate RM1.5 billion for solar parks at government buildings, with 150 megawatts under the Large Scale Solar 6 programme reserved for Bumiputera companies.
Tenaga Nasional Bhd will invest RM15 billion to strengthen the national grid, while UEM Lestra will receive RM1 billion for projects including energy storage at Kuala Lumpur International Airport and a 1-gigawatt hybrid energy project in Johor.
Other initiatives include a RM1 billion KWAP Climate Fund for green projects and rebates of up to RM200 under the NUR MADANI programme for energy-efficient air conditioners and refrigerators.
Fadillah said collaboration between Petronas and TNB in the ASEAN Power Grid would strengthen regional energy security and connectivity. TNB and telecommunications companies would also work with the government to accelerate rural electricity access and internet connectivity through combined government and corporate social responsibility funding. - October 9, 2026
