General 09/10/2026 10:59 PM

Budget 2027: PETRA Allocated RM5.33 Bln To Strengthen Water And Energy Infrastructure

BERNAMA Malaysian National News Agency
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Budget 2027: PETRA Allocated RM5.33 Bln To Strengthen Water And Energy Infrastructure
Kredit: FB - Fadillah Yusof

KUALA LUMPUR, Oct 9 (Bernama) -- The Ministry of Energy Transition and Water Transformation (PETRA) has been allocated RM5.33 billion under Budget 2027 to strengthen water and energy infrastructure, reduce flood risks and improve energy efficiency.

Deputy Prime Minister Datuk Seri Fadillah Yusof said the allocation would also focus on ensuring clean water supply, enhancing the resilience of basic infrastructure and expanding the use of clean energy.

He said six Flood Mitigation Plan (RTB) projects worth RM336 million had been completed, while another 82 projects were being implemented according to schedule, including the Kuching City RTB Phase 2, the Sungai Golok Integrated River Basin Development Project (PLSB) Phase 2 in Kelantan and the Sungai Kemaman PLSB in Terengganu.

“In Kelantan, the Lebir Dam Project has the potential to reduce flood risks for 320,000 residents and supply 337 million litres of raw water a day to 353,222 residents. Efforts to increase water supply in the state also include the construction of the Machang Water Treatment Plant and the replacement of ageing pipes,” he said in a statement today.

Fadillah, who is also Energy Transition and Water Transformation Minister, also said Phase 2 of the Non-Revenue Water Reduction Programme, worth RM2.5 billion, would be implemented to replace 1,900 kilometres of critical ageing pipes, while public sewerage systems on Tuba Island, Langkawi, Redang Island and Tioman Island would be upgraded immediately.

In efforts to strengthen inter-state water supply, Fadillah said a 40-year Bulk Water Supply Agreement between Perak and Penang had also been signed, in addition to plans to construct a Regional Sewage Treatment Plant and Sewerage Pipeline Network in Kuala Terengganu.

For the energy sector, he said the government had raised the electricity bill protection threshold from 600 kilowatt-hours (kWh) to 800 kWh per month, which is expected to benefit more than eight million, or up to 90 per cent, of domestic consumers.

“In Sabah, the installation of STATCOM systems at the Dam Road and Segaliud Main Intake Substations will be carried out at a cost of RM204 million, in addition to continuing the Southern Link Transmission Line project to ensure the continuity of electricity supply in the state,” he said.

Fadillah said Budget 2027 also provided RM1.5 billion in investment for the development of solar parks on government buildings, while a capacity of 150 megawatts (MW) under the Large Scale Solar (LSS) 6 project had been set aside for Bumiputera companies.

In terms of grid strengthening and energy efficiency, Tenaga Nasional Bhd (TNB) will invest RM15 billion to strengthen the national grid, while UEM Lestra has been allocated RM1 billion to implement an energy storage project at Kuala Lumpur International Airport and a one-gigawatt hybrid energy project in Johor.

“In addition, the Retirement Fund Incorporated (KWAP) Climate Fund worth RM1 billion will be provided to support green projects, while the NUR MADANI programme offers rebates of up to RM200 for the purchase of energy-efficient air conditioners and refrigerators,” he said.

He said the involvement of PETRONAS and TNB in the ASEAN Power Grid was also part of efforts to strengthen energy security as well as regional energy cooperation and connectivity.

Therefore, to expand access to basic amenities, TNB and telecommunications companies will work with the government through the pooling of government funds and corporate social responsibility contributions to expedite the provision of electricity supply in rural areas and expand Internet coverage.

Meanwhile, Fadillah said Sabah and Sarawak would continue to receive attention from the MADANI Government under Budget 2027, with Sabah receiving RM18.7 billion and Sarawak RM16.2 billion to strengthen basic amenities, education, healthcare and infrastructure.

He said key initiatives included the RM1.5 billion interim Special Grant under the Malaysia Agreement 1963 (MA63), nearly RM1.3 billion to upgrade 682 dilapidated schools, and RM600 million for electricity supply in Sabah.

Fadillah also congratulated and thanked Prime Minister Datuk Seri Anwar Ibrahim for tabling Budget 2027, themed “Reaching for the Skies, While Anchored on Our Values”, today, which emphasises that development must be balanced with human values and the needs of the people.

“For the MADANI Government, development is not merely about figures and allocations. More importantly, the people should enjoy better amenities, a more comfortable life and brighter opportunities for the future,” he said in a post on X.

-- BERNAMA