THE MADANI 2026 Budget is a people's budget, driven by their voices and aspirations towards ensuring that every level of society experiences the benefits of development, said Deputy Prime Minister Datuk Seri Fadillah Yusof.
"It reflects the spirit of cooperation between the government and the people in building a prosperous and inclusive future.
"Based on sustainability, resilience and growth, this budget affirms that fiscal discipline, transparency and social justice are the foundations of the country's economic strength and the well-being of the people," he said.
He said the Ministry of Energy Transition and Water Transformation (PETRA) welcomes the 2026 Budget which emphasises the balance between economic progress and the sustainability of energy and water resources for the well-being of the people.
"This focus is in line with PETRA's mission to ensure access to clean, safe and affordable energy and water for all Malaysians, while preserving natural resources and the environment.
"Budget 2026 allocates RM5.19 billion for the energy and water sectors, comprising RM392.74 million for operating expenditure and RM4.8 billion for development expenditure, thus reflecting the government's continued commitment to building economic resilience and the long-term well-being of the people," said Fadillah, who is also the Energy Transition and Water Transformation Minister.
Sabah and Sarawak Focus
Fadillah also said that the Government places great emphasis on the development of Sabah and Sarawak through strategic investments in energy, water, roads and digitalisation in line with the spirit of the Malaysia Agreement 1963 (MA63).
Sabah received RM6.9 billion while Sarawak received RM6 billion - both allocations being the highest in history. Special Grants for Sabah and Sarawakhas been increased through this allocation by a total of RM600 million.
"The MADANI 2026 Budget reflects the government's commitment to building a sustainable economy, resilient citizens and a prosperous country.
"It emphasizes prudent and transparent fiscal management, ensuring that national revenues are used for the people through targeted assistance, strategic investments and inclusive green growth.
"PETRA remains committed to strengthening the energy and water sectors in a prudent, sustainable and high-impact manner, in line with the aspirations of a MADANI Malaysia," he added. - October 10, 2025
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