PAPAR: The Federal Government is urged to consider increasing Sabah’s annual electricity subsidy following the current rising global fuel costs, as well as extending the subsidy period, which is scheduled to end in 2030.
Papar Member of Parliament Datuk Armizan Mohd Ali said continued support from the Federal government is important to enable the transformation and stabilisation of Sabah’s electricity supply system to be implemented until it reached maturity.
He said an official appeal for additional subsidies had been submitted by the state government agencies to the Federal Government following an increase in fuel costs due to geopolitical conflicts in West Asia.
“As the Papar Member of Parliament, I would like to appeal to the Federal Government to consider providing additional electricity subsidies to Sabah this year due to the increase in fuel costs.
“The need for these subsidies also involves financial implications that are expected to reach hundreds of millions of ringgit,” Armizan said.
He said this in a press conference held in conjunction with the commissioning ceremony of the Main Distribution Substation (PPU) Benoni 33/11kV, here, on Thursday.
Although regulatory powers over electricity and renewable energy had been transferred to the state government in 2024, Armizan said the Federal Government continued to provide annual electricity subsidies to Sabah, a commitment he greatly appreciated.
Armizan, who is also Domestic Trade and Cost of Living Minister, said the subsidy should not only be increased this year but also continued beyond 2030, taking into account the time required to resolve legacy issues and stabilise the region’s electricity supply system.
“The regulatory powers over electricity and energy in Sabah were only transferred to the state two years ago, after being under the Federal Government from 1984 to 2024.
“Therefore, consideration of the subsidy must take into account the progress achieved and the legacy issues involving electricity stability inherited by the State government after regulatory powers and responsibility for electricity supply had been under the Federal Government for such a long period,” he said.
According to him, apart from the duration of the regulatory power transition, Sabah’s contribution to environmental conservation should also be considered in determining the continuation of electricity subsidies.
He said Sabah had maintained its commitment to zero coal-fired power generation, unlike other regions, including Peninsular Malaysia, which had significant reliance on the resource.
“Sabah does not have coal-fired power plants due to its commitment to environmental protection. However, it continues to face issues involving the stability and sustainability of its electricity supply.
“At the same time, Sabah is also an important contributor to carbon buffering through the preservation of forest cover, which accounted for 63 per cent of the State’s total area,” he said.
He said the commitment is in line with the national agenda of maintaining 50 per cent forest cover, which was agreed upon internationally at the 1992 Rio de Janeiro Earth Summit.
