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THE Ministry of Energy Transition and Water Transformation (PETRA) has outlined a wide-ranging programme of spending and reforms under Budget 2026, committing billions of ringgit to flood mitigation, water infrastructure, electricity supply and the shift towards cleaner energy, as debate in the Dewan Negara drew to a close.
In winding up the debate on the Supply Bill 2026, Deputy Energy Transition and Water Transformation Minister Akmal Nasrullah Mohd Nasir said the budget reflected the government’s effort to balance economic growth with the long-term sustainability of energy and water resources, in line with its aim of ensuring clean, safe and affordable access for all Malaysians.
A total of RM5.19 billion has been allocated to the energy and water sector, including RM392.74 million in operating expenditure and RM4.8 billion for development spending.
The development allocation covers 544 projects nationwide, comprising 417 continuing projects and 127 new ones, signalling what the ministry described as a sustained commitment to economic resilience and public wellbeing.
Flood mitigation dominated the concerns raised by senators, with repeated flooding, economic losses and weaknesses in urban drainage systems highlighted across several states. The ministry said 141 flood mitigation projects had been approved under the first rolling plan of the 13th Malaysia Plan, while major river basin projects in Kelantan, including those covering the Golok and Kelantan rivers, were being implemented in phases as integrated long-term solutions.
A feasibility study for the proposed Lebir Dam has been approved as part of long-term flood control efforts, while upgrades to the Timah Tasoh Dam are under way, with the final phase expected to be completed by June 2027 following the resolution of land issues.
Officials acknowledged delays in some projects, citing land acquisition, utility relocation and detailed technical studies as key challenges affecting delivery timelines.
Coastal erosion, particularly during the northeast monsoon, was also flagged as a growing threat.
The ministry said mitigation efforts were being guided by the National Coastal Erosion Study and Integrated Shoreline Management Plans, with 57 projects approved nationwide.
In critical areas, emergency funding has been deployed as a temporary measure while longer-term solutions are pursued.
To improve preparedness for extreme weather, RM124.95 million has been channelled towards river dredging, slope stabilisation, drainage repairs and flood control maintenance.
Early warning systems have also been strengthened through the second phase of the Flood Forecasting and Warning Programme, which now operates around the clock and provides flood forecasts up to seven days in advance.
On water supply and sanitation, senators raised concerns over ageing treatment plants, non-revenue water and pipe replacement.
The ministry reiterated that water management remains under state jurisdiction, with infrastructure financing for restructured states channelled through Pengurusan Aset Air Berhad, while new water source development is funded through federal grants.
In Sabah, the federal government has approved RM2.9 billion in grants and loans for 16 water supply projects, including a special RM300 million allocation to address persistent shortages.
Under the 13th Malaysia Plan, a nationwide pipe replacement programme worth RM2.525 billion will also cover Sabah, targeting deteriorated asbestos cement pipes.
Sarawak has received RM1.4 billion in loans under the 12th Malaysia Plan for eight water projects, alongside additional allocations approved under the first rolling plan of the 13th Malaysia Plan.
The ministry noted that certain local projects fall outside its remit and are overseen by other federal ministries or the state government.
Johor’s water security strategy was also outlined, with the government pursuing a Zero Dependency Project aimed at reducing reliance on treated water from Singapore through new river off-stream storage reservoirs and barrages.
Several new water treatment plants are in various stages of design and construction, with major facilities expected to be completed by 2027.
Electricity supply, particularly in Sabah, was another focal point. Although regulatory authority over electricity has been devolved to the Sabah state government, the federal government said it remains committed to supporting critical infrastructure.
A sum of RM765 million has been provided for transmission projects, including the Southern Link, to stabilise supply in eastern Sabah.
Power interruption indicators in Sandakan have shown improvement this year, with further gains expected as grid upgrades continue.
On sustainable energy, the ministry said Malaysia remains on track towards its goal of net zero carbon emissions by 2050, guided by the National Energy Transition Roadmap, which targets 70 percent renewable generation capacity by mid-century.
Programmes to encourage rooftop solar, community-based renewable generation and corporate access to green electricity are being expanded, with new schemes set to replace the recently concluded Net Energy Metering 3.0 programme from 2026 onwards.
The government also confirmed that renewable energy development in Sarawak falls under state regulatory authority and is financed through private and business-to-business arrangements, rather than federal grants.
The National Hydrogen Roadmap, meanwhile, is being led by the Ministry of Science, Technology and Innovation, with Sarawak encouraged to engage directly on research funding and incentives.
A major emphasis was placed on Sabah and Sarawak more broadly, with the MADANI government describing current allocations of RM6.9 billion for Sabah and RM6 billion for Sarawak as the highest in history.
Special grants for both states have been increased to RM600 million, reflecting commitments under the Malaysia Agreement 1963.
In closing the debate, Akmal thanked senators for their input and said continued cooperation would be essential to addressing the challenges facing the country, pledging to keep working with federal, state and local stakeholders to deliver practical solutions for communities across Malaysia. - December 15, 2025
