Home Civil Society Voices Ringgit for nature: SAM’s verdict on Malaysia’s green spending

Ringgit for nature: SAM’s verdict on Malaysia’s green spending

Leading environmental NGO scrutinises the ecological impact of Budget 2025

Majestic: Vines dangle from tall trees - LINDA LUMAYAG

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Environmental watchdog Sahabat Alam Malaysia (SAM) has offered a mixed review of Budget 2025’s environmental provisions.

While acknowledging some positive steps, the group highlights several areas of concern.

On the positive side, SAM welcomes the increase in ecological fiscal transfers for protection and conservation efforts to states, from RM200m to RM250m.

However, it notes the amount is “still not significant enough to incentivise states to keep the forests and biodiversity intact. We would have liked to see a much higher amount.”

The introduction of a carbon tax on iron and steel sectors is viewed favourably, with SAM stating: “This is a good move. The carbon tax should cover all high-emitting polluters.” Yet, it expresses disappointment that the implementation may be delayed until 2026.

SAM approves measures promoting renewable energy uptake and encouraging the use of energy-efficient appliances.

The groups also supports flood mitigation efforts but suggests a shift in approach: “While this is welcome, we would have liked to see high prioritisation given to adaptation through ecosystem-based approaches rather than just the stress on infrastructure and engineering-based efforts.”

However, SAM raises concerns about several aspects of the budget.

It criticises the tax exemption for carbon capture, utilisation and storage, arguing that “promoting CCUS use will actually promote carbon lock-in and does not set the direction for transitioning from fossil fuels”.

The green group also expresses dissatisfaction with official support for the rare-earth sector, stating its concern that mining will be undertaken “in environmentally sensitive areas which is counterproductive to our forest conservation efforts”.

Lastly, SAM is disappointed over the absence of tax exemptions for environmental NGOs, emphasising the significant contributions these groups make to environmental causes.

The views expressed in Aliran's media statements and the NGO statements we have endorsed reflect Aliran's official stand. Views and opinions expressed in other pieces published here do not necessarily reflect Aliran's official position.

AGENDA RAKYAT - Lima perkara utama
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  4. Selamatkan demokrasi dan angkatkan keluhuran undang-undang
  5. Lawan rasuah dan kronisme
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