Budget: RM1.2 Bln Federal Commitment To Stabilise Sabah's Electricity Supply

PAPAR, Oct 11 (Bernama) -- The RM1.2 billion subsidy to stabilise power supply in Sabah reflects the federal government’s commitment, concern and continuous efforts to resolve the state’s longstanding electricity supply issues, said Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali.

He said the allocation announced by Prime Minister Datuk Seri Anwar Ibrahim when tabling Budget 2026 yesterday is crucial in addressing the legacy issue in collaboration with the Sabah government.

He said the amount includes RM880 million for tariff support, fuel and large-scale solar subsidies — an increase from the RM700 million allocated for 2025.

“A total of RM189.8 million is allocated under the Rural Electricity Supply (BELB) projects by the Ministry of Rural and Regional Development.

“Another RM128 million is set aside for electricity connection projects implemented by the Sabah Special Project Team for Electricity Supply (PPKBES) under the Ministry of Energy Transition and Water Transformation (PETRA),” he said.

The Papar MP told reporters this after witnessing the signing of a Memorandum of Understanding (MoU) for the development of 10Star Cinemas community theatres with WSG Properties and WK Consortium here today.

Armizan said the commitment demonstrates the federal government’s determination to resolve Sabah’s legacy issue of unstable electricity supply, even though regulatory power has been handed over to the state government since 2024.

The handover involved transferring regulatory authority from the federal statutory body Energy Commission (EC) to the state-established Energy Commission of Sabah (ECoS).

“Meanwhile, the majority shareholding in Sabah Electricity (SE) remains under Tenaga Nasional Berhad (TNB). SE is an integrated utility company providing electricity generation, transmission and distribution services throughout Sabah and the Federal Territory of Labuan,” he said.

In addition, allocations have also been channelled to support the federal government’s commitment to resolving water supply issues through a total provision of RM1 billion from 2024 to 2026.

“This includes Sabah water projects such as pipe installation works in Tawau and upgrading of old pipelines in Kota Kinabalu, Penampang and Putatan. These projects are in the implementation phase and expected to be completed next year,” he said.

Meanwhile, Armizan welcomed the RM100 million 10Star Cinemas investment initiative in Sabah, which includes the opening of six cinemas in rural areas that are already operational.

“As highlighted at today’s MoU ceremony, two more cinemas — in Kinarut and Kundasang — will be built, targeted for completion and operation in 2026 and 2027, respectively,” he added.

-- BERNAMA