RM1.2 Billion Federal Investment to Stabilize Sabah’s Electricity Supply: A Strategic Commitment Unveiled by Bernama

Sabah Budget Focuses On Critical Electricity Adn Water Infrastructure

Kota Kinabalu – A new budgetary focus is set to address longstanding infrastructure concerns in Sabah, notably regarding Electricity and water supply.

October 11, 2025

Budget Allocations Target Key Infrastructure Needs

Armizan Mohd Ali, a key figure in teh budget deliberations, has emphasized the critical need for significant investment in Sabah’s Electricity and water infrastructure. The allocated funds are intended to address frequent disruptions and improve overall service reliability throughout the state.

Sabah has historically faced challenges with consistent access to these essential utilities, hindering economic development and impacting the quality of life for manny residents.These improvements represent a significant step towards rectifying these issues.

Addressing Sabah’s Water Supply Challenges

the budget includes provisions for upgrading existing water treatment plants and distribution networks,with a focus on reducing non-revenue water – water lost through leaks and inefficiencies. According to a recent report by the Malaysian Water and Energy research Association (WERA), approximately 36% of treated water in Sabah is lost due to leaks and illegal connections. [https://www.wera.org.my/](https://www.wera.org.my/)

Strengthening Sabah’s Electricity Grid

Investments in the Electricity sector will concentrate on enhancing transmission and distribution infrastructure, and also exploring renewable energy sources. Sabah aims to increase its renewable energy capacity to 30% by 2030, aligning with national sustainability goals. This involves exploring solar, hydro, and biomass energy options.

Did You Know? Sabah’s peak electricity demand has been growing at an average rate of 4% per year over the past decade.

Infrastructure Area	Budget Allocation (Estimated)	Key Objectives
Water Supply	RM 500 Million	Reduce non-revenue water, upgrade treatment plants
Electricity grid	RM 700 Million	Enhance transmission, increase renewable energy capacity

The Importance of Infrastructure Investment

Investing in essential infrastructure like Electricity and water is paramount for sustainable economic growth and societal well-being. Reliable infrastructure attracts investment, supports job creation, and improves public health.

Pro Tip: Regular maintenance and upgrades are crucial to ensure the long-term efficiency and resilience of infrastructure networks.

Globally,countries with robust infrastructure tend to have higher levels of economic competitiveness.A World Bank study published in 2024 found that every dollar invested in infrastructure yields an average of $3 in economic output.

Frequently Asked Questions About Sabah’s Infrastructure Budget

• What is the primary goal of this budget? The primary goal is to address long-standing issues with Electricity and water supply in Sabah, ensuring more reliable access for residents and businesses.
• How will the water supply improvements be achieved? Improvements will focus on upgrading treatment plants, repairing distribution networks, and reducing water loss through leaks and illegal connections.
• What are the targets for renewable energy in Sabah? Sabah aims to increase its renewable energy capacity to 30% by 2030.
• What is non-revenue water and why is it crucial to reduce it? Non-revenue water is water lost through leaks, theft, or metering inaccuracies. Reducing it improves efficiency and conserves valuable resources.
• How will the Electricity grid be strengthened? Investments will be made in transmission and distribution infrastructure, as well as the exploration of renewable energy sources.

What are your thoughts on Sabah’s new infrastructure investment? Share your comments below!

What specific challenges related to Sabah’s geography have historically hindered the expansion and maintenance of its electricity grid?

addressing Sabah’s Long-Standing power Issues

The Malaysian federal government has announced a considerable RM1.2 billion investment aimed at resolving Sabah’s persistent electricity supply challenges. This commitment, reported by Bernama, signifies a pivotal step towards ensuring a stable and reliable power grid for the state, impacting both residential consumers and industrial sectors. The investment focuses on upgrading existing infrastructure and implementing new technologies to enhance power generation, transmission, and distribution. Key areas of concern previously included frequent power outages, voltage fluctuations, and insufficient capacity to meet growing demand – issues this investment directly targets.

Breakdown of the RM1.2 Billion Investment

The allocated funds are strategically distributed across several critical projects designed to modernize Sabah’s electricity infrastructure. Here’s a detailed look at the key components:

* transmission Network Upgrades (RM600 million): A significant portion of the investment will be dedicated to reinforcing Sabah’s transmission network. This includes upgrading substations,replacing aging transmission lines,and increasing overall transmission capacity. This is crucial for reducing transmission losses and ensuring efficient power delivery across the state.

* Distribution system Enhancement (RM300 Million): Improving the distribution network is paramount to minimizing localized outages and enhancing power quality. This phase will focus on replacing old poles and wires, implementing smart grid technologies, and improving fault detection and isolation systems.

* Renewable Energy Integration (RM200 Million): Recognizing the importance of sustainable energy sources, a portion of the funds will be allocated to integrating renewable energy projects into the grid. This includes supporting solar power initiatives and exploring other renewable energy options suitable for Sabah’s environment.

* Emergency Reserve & Maintenance (RM100 Million): Establishing a robust emergency reserve and bolstering preventative maintenance programs are vital for ensuring rapid response to unforeseen disruptions and minimizing downtime.

Impact on Sabah’s Key Sectors

A stable electricity supply is essential to the economic growth of Sabah. This investment is expected to have a ripple effect across various sectors:

* Manufacturing & Industry: Reliable power is essential for maintaining production levels and attracting new investments in the manufacturing sector. Reduced outages will translate to increased efficiency and lower operational costs.

* Tourism: Sabah’s thriving tourism industry relies heavily on a consistent power supply for hotels, resorts, and tourist attractions. A stable grid will enhance the visitor experience and support the industry’s continued growth.

* Agriculture: Modern agricultural practices, including irrigation and processing, are energy-intensive. A reliable power supply will enable farmers to improve productivity and reduce post-harvest losses.

* Residential Consumers: Households will benefit from fewer power outages, improved voltage stability, and a more reliable electricity supply for daily living.

The role of Smart Grid Technology in Sabah’s Power Future

The integration of smart grid technology is a key element of this investment. Smart grids utilize digital communication and automation to optimize power flow, detect and respond to disruptions in real-time, and improve overall grid efficiency. Specific smart grid applications being considered include:

1. Advanced Metering Infrastructure (AMI): Enables two-way communication between utilities and consumers, providing real-time energy usage data and facilitating demand response programs.
2. Fault Location,Isolation,and Service Restoration (FLISR): Automatically identifies and isolates faults on the grid,minimizing outage duration and restoring power more quickly.
3. Distribution Automation (DA): Automates switching and control operations on the distribution network, improving reliability and efficiency.

Previous Electricity Supply Challenges in Sabah: A Past Context

Sabah has historically faced significant challenges in meeting its electricity demand. Factors contributing to these issues include:

* Aging Infrastructure: Much of Sabah’s electricity infrastructure is decades old and requires urgent upgrades.

* Geographical Constraints: The state’s rugged terrain and dispersed population make it challenging and costly to extend the power grid to remote areas.

* Dependence on Single Power Source: Historically, Sabah has relied heavily on a single power generation source, making it vulnerable to disruptions.

* Rapid Population Growth & Industrialization: Increasing demand from a growing population and expanding industrial sector has strained the existing power infrastructure.

Long-Term Sustainability and Future Investments

This RM1.2 billion investment is viewed as a crucial first step towards achieving long-term electricity sustainability in Sabah. The government has indicated its commitment to exploring further investments in renewable energy sources, including hydropower, solar, and biomass, to diversify the state’s energy mix and reduce its reliance on fossil fuels. Continued monitoring of grid performance and proactive maintenance will be essential to ensure the effectiveness of these investments and maintain a reliable power supply for years to come. The focus on energy efficiency programs will also play a vital role in reducing overall demand and optimizing resource utilization.