PRIME MINISTER Datuk Seri Anwar Ibrahim has unveiled a sweeping RM3 billion package under Budget 2026 to bolster Malaysia’s disaster preparedness and environmental protection, citing the “critical need for readiness in the face of escalating climate risks and natural calamities.”
In Parliament today, Anwar, who also serves as Finance Minister praised the swift response of the National Disaster Management Agency (NADMA), particularly during the deadly floods and landslides in Sabah, which he described as “a harrowing test.”
Among the immediate responses is the RM220 million rebuilding of the flood-damaged IPG Kampus Gaya, as well as RM39 million for Phase Two of flood mitigation in Inanam.
“Next year, NADMA will be equipped with RM460 million to enhance disaster response, including building 10 new sanitation complexes with access to clean water in evacuation centres, which will also serve schoolchildren,” said Anwar.
The government is also permitting state governments to use MARRIS funds to purchase modular Bailey Bridges and expand inadequate state road drainage systems. Meanwhile, the Malaysian Communications and Multimedia Commission (MCMC) will invest RM210 million to develop a nationwide Early Warning System (EWS) to reduce disaster risks.
A RM20 million matching grant under the GLC Disaster Response Network (GDRN) will continue to support victims of natural disasters.
In terms of long-term flood mitigation, RM2.2 billion is allocated to continue 43 high-priority flood mitigation projects nationwide. These include 12 new projects beginning in 2026 across Johor, Kedah, Negeri Sembilan, Penang, Perak, Selangor and Terengganu.
Anwar added that RM260 million will go toward nationwide slope repair and maintenance, including along federal roads, and RM55 million is earmarked to clean and upgrade drainage systems under all local authorities.
As part of a forward-looking risk strategy, Anwar also announced the introduction of the MADANI Captive Insurance Programme via Labuan IBFC. “This will reduce reliance on public funds by financing risk through more efficient and cost-effective insurance and takaful platforms,” he said.
Environmental Conservation
On environmental conservation, Budget 2026 allocates RM250 million to the Ecological Fiscal Transfer (EFT) fund to support state-level biodiversity preservation, with RM50 million disbursed directly as revenue to state governments.
In an effort to combat poaching and deforestation, RM80 million is set aside for 2,500 community rangers, drawing from the expertise of over 1,000 Orang Asli and nearly 700 military veterans. Rangers will receive upgraded patrol equipment to better protect endangered species such as the Malayan tiger, orangutan and banteng.
RM300 million is also allocated to rehabilitate, maintain and clean rivers nationwide. Anwar said RM10 million will go towards the development of the Denai Sungai Kebangsaan, or National River Trails, to promote recreational spaces and encourage community engagement in river sustainability. - October 10, 2025
