Malaysia

Sabah to take over RM4.06 billion rural water projects in bid to speed up delivery

Federal transfer of 83 projects expected to cut bureaucracy, but experts warn execution, governance and contractor quality remain critical to resolving long-standing water woes

Updated 5 months ago · Published on 19 Apr 2026 11:35AM

Sabah to take over RM4.06 billion rural water projects in bid to speed up delivery
The handover was announced by Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi as part of efforts to accelerate completion of the projects - April 19, 2026

THE transfer of authority for 83 Rural Water Supply (BALB) projects worth RM4.06 billion from the federal government to the Sabah state administration is expected to reduce bureaucratic delays, particularly in technical and financial approvals.

Universiti Malaysia Sabah’s Geopolitics and Electoral Studies Centre (GeoPES) associate professor Dr Syahruddin Awang Ahmad said the move would allow state agencies, including the Sabah State Water Department, to manage tenders and monitor project implementation more efficiently.

He said the decentralisation places greater responsibility and accountability on the state government, particularly following the recent state election.

“Any implementation failure will thus be seen as a weakness of state-level domestic management, while the federal government will be held less accountable in the public eye.

“Still, some parties will likely blame both governments if coordination isn’t as smooth as promised,” he told Bernama.

The handover was announced on 16 April by Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi, who is also Minister of Rural and Regional Development, as part of efforts to accelerate completion of the projects.

Syahruddin cautioned, however, that faster administrative processes alone would not resolve Sabah’s long-standing water supply challenges, including high non-revenue water (NRW) rates.

“Absolute resolution still depends on governance efficiency, contractor quality and the agency’s ability to tackle complex technical issues like Sabah’s current Non-Revenue Water (NRW) rates,” he said.

He urged the state government to implement strict monitoring mechanisms to prevent cronyism in contract awards.

“This handover is a major test for state leadership to prove its capability. If successful, I believe it will set a new benchmark for federal-state relations, in line with MA63,” he added, referring to the Malaysia Agreement 1963.

UMS political analyst Dr Romzi Ationg said the decision reflects public expectations for quicker and more efficient resolution of Sabah’s chronic water issues.

“This initiative brings great hope to Sabahans, who want the long-standing water crisis resolved quickly through more efficient state-level action,” he said.

However, he noted that responsibility now rests primarily with the state government, and outcomes will be closely scrutinised by the public.

Separately, Umno Sabah liaison secretary Samasuddin Yusop described the transfer of authority as a strategic move that could accelerate efforts to resolve water supply problems, particularly in rural areas.

“This power transfer aligns with MA63 and enables faster, more targeted state decisions based on local geography, without waiting for central processes,” he said.

He added that the party welcomed the federal government’s trust in the state, stressing that implementation must be efficient and transparent.

Samasuddin said Umno would support the initiative to ensure that delivery is not hampered by delays or leakages, and that benefits reach the people as intended. - April 19, 2026

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