KUALA LUMPUR: Budget 2027 reinforces Malaysia’s sustainability policy direction across decarbonisation, climate resilience and social inclusion, says Kenanga Investment Bank Bhd
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In a research note, the investment bank said it is particularly encouraged to see conservation funding increases that strengthen the backdrop for nature-positive activities.
It highlighted measures announced under Budget 2027, which include increasing the Ecological Fiscal Transfer allocation to RM270mil (2026: RM250mil) for state-level conservation, while RM65mil would support community biodiversity rangers.
Almost RM320mil would fund nationwide slope, drainage and ditch upgrades, while RM260mil is allocated to the National Disaster Management Agency. The RM2.5bil Non-Revenue Water programme targets the replacement of 1,900 km of ageing pipes, while RM100mil would fund retention ponds and river maintenance to reduce flood risks in the Klang Valley.
Another RM15mil from palm oil industry cess collections would support conservation, particularly in habitats of endangered species.
“On the other hand, we observe that policy sequencing remains a key consideration. The absence of a new carbon-tax announcement in Budget 2027 may reflect ongoing implementation complexities, including the interaction with fossil-fuel subsidy rationalisation,” it said. — Bernama
