By Shikin Louis
KUCHING, Oct 11: The Ministry of Energy Transition and Water Transformation (PETRA) has been allocated RM5.19 billion under Budget 2026, marking a 4.8 per cent increase from this year’s RM4.95 billion, says Deputy Prime Minister Datuk Amar Fadillah Yusof.
He said the allocation includes funding for eight new projects alongside ongoing initiatives worth over RM4 billion.
Fadillah, who also helms PETRA, emphasised that the federal government remains committed to achieving 70 per cent renewable energy capacity by 2050 under the National Energy Transition Roadmap (NETR).
“Among the first initiatives is the Large-Scale Solar (LSS6) programme, to be launched next year with a total capacity of 2 gigawatts (GW), involving RM6 billion in private investment,” he said during a press conference on Budget 2026 held at a local hotel here today.
He further said that government-linked companies (GLCs) and government-linked investment companies (GLICs) are expected to collectively invest RM16.5 billion in green energy and electric vehicle (EV) charging infrastructure.
Additionally, Malaysia will also participate in the ASEAN Power Grid (APG) project, connecting cross-border electricity networks between Vietnam, Malaysia and Singapore.
“Meanwhile, an additional 300 megawatts of quota will be introduced for biogas, biomass and mini-hydro under the Feed-in Tariff (FiT) scheme in Peninsular Malaysia,” he added.
Fadillah further highlighted the strengthening of the Corporate Renewable Energy Supply Scheme (CRESS), which could attract up to RM3.5 billion in private investment once fully operational.
He also announced the expansion of the Solar Accelerated Transition Action Programme (Solar ATAP) programme, aimed at allowing communities to lease rooftops within a 5km radius for solar panel installations—potentially cutting electricity bills by up to 42 per cent.
“This approach allows households to benefit by leasing their rooftops to private companies that will manage the installations and operations,” he explained.
To promote energy efficiency, the government has allocated RM20 million in rebates for energy-efficient appliances, along with tax relief of up to RM2,500 for the purchase of food waste reduction machines.
In the water sector, RM2.2 billion has been earmarked for 43 flood mitigation projects nationwide, RM260 million for slope maintenance and RM55 million for drainage upgrades.
An additional RM13 billion will go towards improving water treatment plant capacity under the Pengurusan Aset Air Berhad (PAAB)—covering projects such as Langat 2, Machang and Sidam Kiri.
Meanwhile, the Non-Revenue Water (NRW) programme will continue with an allocation of RM3 billion to replace 820km of old pipes, including the construction of an underground dam in Langkawi.
Another RM300 million has been set aside for the National River Trail programme, focusing on river rehabilitation and community recreation pathways.
Fadillah expressed optimism that Budget 2026 will promote balanced economic growth across regions while enhancing the wellbeing of the people.
“What matters most now is effective implementation—ensuring that every allocation is fully utilised and every project completed within scope, schedule and budget,” he stressed. – DayakDaily
