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MALAYSIA'S 13th Malaysia Plan (RMK13) will serve as a pivotal roadmap for accelerating the nation’s transformation into a more sustainable, resilient, and progressive economy, with energy transition and water sector reform forming the strategic backbone of national development for the next five years.
In a media statement, Deputy Prime Minister and Minister of Energy Transition and Water Transformation, Dato’ Sri Haji Fadillah Yusof, reaffirmed the Government’s commitment to “ensuring that the policies under RMK13 deliver tangible benefits for the people and the sustainability of the nation.”
In alignment with Malaysia’s pledge to achieve carbon neutrality by 2050, the plan outlines a comprehensive energy reform strategy, including:
"Improving electricity supply through smart grid development, and the deployment of battery energy storage systems (BESS) of 400 MW for four hours, attracting RM2.5 billion in investments and enabling a more flexible market mechanism."
He noted that legislative support for energy reforms is already underway with the passage of the Electricity Supply and Energy Commission (Amendment) Bill 2025 in the Dewan Rakyat, paving the way for the establishment of a Market Operator to facilitate cross-border power trade and realise the ASEAN Power Grid (APG).
He added, "Strengthening renewable energy (RE) through solar and hydro projects and exploring advanced green technologies. Broader access to green energy will be provided via community-scale photovoltaic solar systems and third-party access frameworks."
Malaysia will also explore nuclear energy as a clean and secure energy source, governed by the Nuclear Energy Programme Implementing Organisation (NEPIO) development framework.
In tandem with the energy agenda, RMK13 also sets ambitious targets for comprehensive water sector transformation to ensure long-term resilience and sustainability. Key initiatives include:
"Flood mitigation projects in high-risk zones such as Kuching (Sarawak), the Johor and Muar River Basins (Johor), the Pahang River Basin (Pahang), Baling (Kedah), Sungai Likas (Sabah), and Sungai Trolak (Perak), aimed at reducing natural disaster impacts."
The plan will harness artificial intelligence (AI) for faster, more accurate flood early warning systems, while a holistic water transformation agenda will focus on reducing non-revenue water (NRW), increasing recycled water use, and enhancing local innovation through research, development, commercialisation and innovation (RDCI).
Partnerships between federal and state governments, alongside the private sector, will be vital to maintaining stable water supply systems in step with Malaysia’s rapid housing and industrial expansion.
As Minister responsible for Sabah and Sarawak affairs, Fadillah welcomed the socio-economic development initiatives under RMK13 for both states, including:
"The grid interconnection project linking Sarawak to Peninsular Malaysia, in line with Sarawak’s ambition to become a renewable energy hub powered by hydroelectricity."
The DPM II said: "The expansion of port capacities in Sabah and Sarawak to support economic growth; the development of blue economy hubs, especially in Sabah; and transforming eastern coastal regions of Peninsular Malaysia, Sabah, and Sarawak into national food production centres."
Further initiatives include expediting flood mitigation works in Kuching and Likas, advancing the socio-economic status of Anak Negeri Sabah and Bumiputera Sarawak through infrastructure upgrades and talent development, and the continuation of major connectivity projects such as the Sarawak–Sabah Link Road, Trans Borneo Highway, and Pan Borneo Highway.
Fadillah added: "The application of the Town and Country Planning Act 1976 \[Act 172] will be extended to Sabah and Sarawak to strengthen national spatial planning through the National Physical Plan."
Border security enhancements are also planned, particularly in northern Peninsular Malaysia, Sabah and Sarawak, with improved security outposts.
“RMK13 will be the primary driver of Malaysia MADANI, emphasising inclusive, sustainable, and resilient development,” said Fadillah. “This bold transformation in energy and water lays a strong foundation for Malaysia to emerge as a regional leader in the green economy and future technologies.” - July 31, 2025
