NGO criticises 'business as usual' flood mitigation efforts

BUDGET 2025 | Sahabat Alam Malaysia (SAM) has expressed disappointment over the government’s continued focus on infrastructure and engineering-based flood mitigation efforts in the recently unveiled Budget 2025.

While the environmental group acknowledged that flood control remains a priority, it stressed the need for ecosystem-based approaches that prioritise natural adaptation methods rather than just structural solutions.

"We see the business-as-usual approach for more flood mitigation efforts. While this is welcome, we would have liked to see high prioritisation given to adaptation through ecosystem-based approaches," SAM said in a statement.

The group has long advocated for flood prevention strategies that work with natural systems, such as restoring wetlands and protecting forest areas, to help absorb excess water and reduce flood risks.

Among the positive highlights of the budget, SAM praised the increase in the Ecological Fiscal Transfer from RM200 million to RM250 million to support state-level conservation efforts.

However, SAM noted that the amount is still insufficient to incentivise states to fully protect forests and biodiversity, calling for a higher allocation to drive more significant environmental protection efforts.

Carbon tax

The group also welcomed the introduction of a carbon tax on high-emitting sectors, starting with iron and steel, but expressed concerns about the delayed implementation, which is slated for 2026.

"We would have liked to see it introduced next year," SAM added.

SAM was pleased with the promotion of renewable energy uptake and the push for energy-efficient appliances, noting that the long-awaited Energy Efficiency and Conservation Act should introduce essential measures to support this transition.

However, the group voiced strong opposition to certain aspects of the budget. SAM criticised the promotion of Carbon Capture Utilisation and Storage, describing it as a controversial and unproven technology that could lead to "carbon lock-in" and delay the transition from fossil fuels.

SAM was also concerned about government support for the rare-earth industry, warning that rare-earth element mining could take place in environmentally sensitive areas, counteracting forest conservation efforts.

Furthermore, SAM expressed disappointment over the lack of tax exemptions for environmental NGOs, which the group said play a crucial role in protecting Malaysia's natural resources.

Builders warn higher cost over subsidy cut

Master Builders Association Malaysia (MBAM) has raised concerns that the construction industry may face rising costs next year, following policy shifts and subsidy removals in the recently announced federal budget.

MBAM president Oliver Wee highlighted that measures such as the introduction of a multi-tier levy system for hiring foreign workers, the RM1,700 minimum wage, and targeted RON95 petrol subsidies are expected to impact the sector.

"Construction contracts are fixed-price agreements. Any changes in policy or subsidy reductions will affect contractors. We anticipate contractors to adopt a more cautious approach as costs rise," Wee said in a statement.

He also urged the government to refrain from implementing a carbon tax at this stage, suggesting instead that more incentives be provided to encourage the use of greener technologies within the industry.

Despite these concerns, Wee welcomed the overall budget, commending its focus on critical infrastructure projects, such as road construction, healthcare facilities, and schools.

He noted that these initiatives would benefit G1 to G4 contractors and contribute to the country's socio-economic growth.

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