Budget 2026 draws mixed reaction from environmental group, citing stagnant funds and data centre threat

GEORGETOWN - Sahabat Alam Malaysia (SAM) has expressed its disappointment with Budget 2026, stating that the allocation for the Ecological Fiscal Transfer (EFT) fund remains at RM250 million, unchanged from the previous year.

The environmental group stated that this amount was insufficient to ensure state governments can effectively fulfil their responsibilities to protect and restore forests.

Its president Meenakshi Raman said the organisation had hoped the government would increase the allocation to ensure forests, particularly water catchment areas, were fully protected for the sustainability of the nation's water resources.

“The RM50 million distributed to state governments, while welcome, is too small to ensure the effective protection of natural resources,” she said in a statement on Friday after the budget was tabled.

She also voiced disappointment over the lack of emphasis on protecting the Central Forest Spine (CFS) and establishing wildlife corridors to prevent human-wildlife conflict.

Meenakshi also highlighted the absence of a specific allocation to combat illegal hunting, smuggling and trafficking of flora and fauna in the country.

On a positive note, she said they welcomed the government's move to continue the RM20 million rebate for the purchase of energy-efficient equipment, stating it encourages a more sustainable lifestyle among consumers and businesses.

However, Meenakshi suggested that the allocation for purchasing food waste grinders would have been better channelled to environmental and consumer education programmes.

“We are disappointed that no allocation was given to environmental and consumer groups to implement such educational programmes,” she said.

However, Meenakshi praised the RM10 million allocation for the continuation of rare earth element mapping activities but expressed hope that environmentally sensitive areas and Indigenous Orang Asli territories would be completely exempted from any such mapping.

She also commended the expansion of the Solar Madani initiative nationwide, following the successful installation of 4,000 solar lights in Sabah.

On forest protection, Meenakshi supported the RM80 million allocation to appoint 2,500 community rangers but hoped the effort would also focus on preventing wildlife hunting and trafficking.

While the RM300 million allocation for river treatment, maintenance and cleaning - including RM10 million for the National River Trail project - was also welcomed by the group, she expressed disappointment over the lack of additional allocation for water and air pollution enforcement and monitoring.

Meenakshi also stated that the group supports the government's move to introduce a carbon tax on the iron, steel and energy sectors but wants to see further details to assess its effectiveness in reducing the nation's carbon emissions.

Conversely, she raised concerns over the government's focus on developing data centres and artificial intelligence, noting that the sector was highly energy and water-intensive.

"This could increase the cost of the country's energy transition and has not yet been accounted for in the National Energy Transition Roadmap (NETR),” she said.

The group, she said, also welcomed the RM460 million allocation to the National Disaster Management Agency (NADMA) for disaster management and RM210 million for early warning systems, describing them as crucial in facing more frequent flood threats due to climate change.

The group also supported the government's move to amend the Aboriginal Peoples Act 1954 (Act 134).

“However, meaningful consultations must be held with the Orang Asli communities and other stakeholders to ensure their native customary rights are truly protected,” Meenakshi said.