From flood mitigation projects to rebates for energy-efficient air conditioners, Budget 2027 is not short on sustainability aspiration.
Here are among the sustainability highlights of Budget 2027, which was tabled by Prime Minister Datuk Seri Anwar Ibrahim on Friday.
Flood mitigation
Flash floods in Klang Valley: The Federal Government and the Selangor government have agreed on five key measures, including assessing the capacity of the Batu Dam and Klang Gate Dam for the next 30 years.
As an immediate step, RM100mil has been allocated to develop retention ponds and carry out river maintenance to reduce floods risks.
Floods in Kelantan: The government will begin planning the Lebir Dam Project as a long-term solution.
Flood mitigation: New flood mitigation projects that will be implemented in 2027 include those in Kuching City, Sungai Golok in Kelantan and Sungai Kemaman in Terengganu.
In addition, slopes, drains and ditches in areas under the jurisdiction of local authorities nationwide will be repaired and upgraded with an allocation of close to RM320mil.
Water supply
Clean water supply in Kelantan: The construction of the Machang Water Treatment Plant and the replacement of aging pipes are currently underway.
Water supply: The government will spend RM2.5bil to improve access to clean water nationwide through the Non-Revenue Water programme.
The initiative will focus on replacing 1,900km of old pipes.
Water supply for Penang: The Madani government has brokered a 40-year bulk water supply agreement between the Perak and Penang state governments.
Power supply
Electricity in rural areas: The government allocated RM3.3bil for basic infrastructure upgrades in rural areas, including installing street lights, community facilities, as well as clean water and electricity supplies.
TNB is installing solar streetlights in villages and rooftop solar panels on welfare homes and places of worship.
Electricity supply will also be improved at tahfiz schools, pondok schools and orang asli villages.
Asean Power Grid: The involvement of PETRONAS and TNB in the Asean Power Grid project will strengthen energy security and open up new economic opportunities, while serving as a foundation for regional diplomacy, cooperation and connectivity.
Energy transition
Centralised solar farm: The government will invest RM1.5bil in a centralised solar farm for government buildings. This creates opportunities for Bumiputera companies in construction, engineering and maintenance.
Under the Large Scale Solar 6 (LSS6) programme, 150 megawatts are allocated to bumiputera companies to support their participation in the clean energy industry.
Energy storage: UEM Lestra is investing RM1bil for the implementation of an energy storage project at KLIA and a 1GW hybrid energy project in Johor.
Green projects: The RM1bil KWAP Climate Fund will be utilised for green projects such as renewable energy and decarbonisation.
Mother nature
Ecological Fiscal Transfer (EFT): To support state efforts in preserving environmental resources, the EFT fund will be increased to RM270mil.
This increase aims to encourage community-based economic and ecotourism activities.
Nature conservation: RM15mil in cess funds collected from the palm oil industry will be utilised for nature conservation. Priority will be given to protecting the habitats of endangered species such as the Malayan tiger, Bornean elephant and orang utan.
Rangers: RM65mil will be allocated to engage around 2,500 community rangers from the orang asli, military veteran and retired police communities to protect the country’s biodiversity treasures.
The allocation will include construction and maintenance of ranger posts used for patrol purposes.
Green technologies
Tax incentives: To encourage more companies to shift towards green and sustainable technologies, tax incentives for the following will be enhanced and extended until Dec 31, 2030:
Companies undertaking green and sustainable technology projects and electric vehicle charging station projects are eligible for an Investment Tax Allowance of up to 100%.
Companies purchasing green technology assets for their own use are eligible for an Investment Tax Allowance of up to 100%.
Electricity consumption
Energy-efficient appliances: Through Nur Madani, rebates of up to RM200 are provided to buyers of energy-efficient air conditioners and refrigerators.
Liveable KL
Walkable city: DBKL will build 22km of covered walkways connecting Masjid Negara, Dataran Merdeka, Central Market, public housing and commercial spaces. Covered walkways will also be built from residential areas to business premises, schools, clinics, and public transport stations.
Parks and green spaces: DBKL to spend RM400mil on creating 120 acres of new green spaces, rehabilitate existing parks and upgrade existing facilities and housing.
Bukit Kiara: A 100-acre leasehold site in Bukit Kiara will be gazetted as a federal park for public use.
Restoration of heritage buildings: The conservation of the Sultan Abdul Samad Building and surrounding heritage sites has attracted half a million local and foreign visitors.
The next focus will be on conserving Dayabumi Tower, Kuala Lumpur Railway Station and the KTMB Headquarters.
