Budget 2026 marks Malaysia’s first national budget under the 13th Malaysia Plan (RMK13) which identifies planetary health as a key development priority. This approach recognises the interconnection between human well-being, environmental sustainability, and economic resilience, ensuring that progress for people goes hand in hand with care for the planet.

The recently announced Budget 2026 presents various initiatives that promote social well-being with the largest allocations directed towards health, education and governance, displaying a welcome focus on these important sectors. The Budget also acknowledges the importance of the contributions of civil society organisations, the Third Sector.

WWF-Malaysia is also reassured by the government’s continued commitment to ethical budgeting and sustainability, marking another step toward building a more resilient and inclusive Malaysia. Several initiatives continue from previous years, including RM250 million allocation for the Ecological Fiscal Transfer (EFT), and RM80 million to support Indigenous Peoples (IP) and veterans serving as rangers, adding much-needed “boots on the ground” for patrolling our forests and deterring poaching activities.

Allocations that benefit Indigenous Peoples and Local Communities (IPLCs) groups are welcome, especially as they play the role of being stewards of nature, fundamental to our nation’s environmental resilience. The Budget also encourages participation by the rakyat in promoting sustainability through consumption choices.

While all this is encouraging and in keeping with the notion of “raising the floor” of the Madani economy, WWF-Malaysia posits that more can and needs to be done to protect nature, which is the very foundation upon which our society and economy are built. Achieving both facets of the Madani Economy to “raise the floor” and “raise the ceiling” will only be possible if nature continues to provide all the immense goods and services, we all rely on.

Budget 2026 unfortunately gives limited attention to nature. In fact, the mapping of our budget allocations to Sustainable Development Goals (SDGs) shows a drastic reduction in allocations for SDG 14 (Life Below Water) and SDG 15 (Life on Land) of 49.9% and 62.5%, respectively, compared to Budget 2025. Apart from enforcement, attention must be given to habitat protection, restoration, and connectivity, all of which are essential to sustain biodiversity, water security, food security, and climate resilience.

An integrated approach that mainstreams nature into our development agenda is essential. While rare earth mineral mining (REE), flood mitigation, road improvements, and tourism in UNESCO sites can bring economic and social benefits, these initiatives must be pursued in harmony with nature to ensure lasting impact. Activities like REE mining should avoid ecologically sensitive areas, and tourism activities in nature, such as jungle trekking, island hopping, must adhere to carrying capacity of the site. This is because protecting forests and ecosystems means safeguarding our best natural defences against extreme weather, as they regulate water and climate cycles, and the best shield against the risks of floods and droughts.

WWF-Malaysia, however, remains hopeful despite the huge reductions in allocations for nature in Budget 2026. An integrated approach can be taken to incorporate nature needs within current allocations. We explore how this could play out further with some examples below.  
  

The government is committed to completing various road projects, especially in Sabah and Sarawak. The budget also addresses a critical concern by prioritising road safety through infrastructure upgrades across selected roads nationwide and the enforcement of stricter speed limits for heavy vehicles to reduce road accidents. However, as several of these roads pass through wildlife habitats, there has unfortunately been an increase in roadkill incidents in recent years. The tragic case of a mother elephant losing her calf to a road accident on Mother’s Day upset both Malaysians and foreigners alike. It served as a stark reminder that infrastructure and wildlife can coexist only with careful planning, enforcement, and collaboration.

Following the incident, WWF-Malaysia, together with the Ministry of Natural Resources and Environmental Sustainability (NRES) and PERHILITAN, convened a multistakeholder Roundtable for Safer Roads for Humans and Wildlife in July 2025. Some initiatives are already underway, such as promoting safer driving along the Gerik-Jeli Highway through a partnership with the Selangor and Federal Territory Engineering and Motor Parts Traders Association (EMPTA). 

Moving forward, efforts involving innovative technology, road designs, and influencing human and animal behaviour require strong coordination, multi-ministry and stakeholder collaboration, and sufficient funding. With proper planning, allocations in this budget for safety and infrastructure development, as well as technology development, can be deployed for the benefit of both humans and wildlife. Moreover, these roads could be transformed into scenic routes that are an attraction with branding like “A Nature Route” or “Gateway to Wildlife Kingdom,” similar to such routes in the United States and Switzerland, thereby generating sustainable economic spinoffs for the local communities.  

Therefore, we urge the Ministries to continue working together along with other stakeholders to protect both humans and wildlife, especially on roads which run through wildlife habitats.  

The Budget 2026 allocates RM3.8 billion for flood prevention and warning systems, representing 0.9% of the total RM421 billion budget, a commendable step in strengthening climate resilience. The allocation to address the impacts of recent floods and landslides in Sabah, is also timely, given the devastating impacts on livelihoods, and infrastructure. 

However, it is alarming that the flood mitigation allocations that now run into the billions annually still fail to protect us from the increasing frequency and intensity of these recurring events. We must pause and take a hard look at the root cause of our vulnerabilities and assess how effective our mitigation measures are by taking a proactive, rather than a reactive approach.

We urge the government to prioritise nature-based solutions, which are actions that protect, restore, and manage our natural environment, such as forests, mangroves, coral reefs, and peatlands. These natural systems help reduce flood and landslide risks, protect food and water sources, and strengthen the resilience of the communities against future climate impacts.

For instance, WWF-Malaysia’s work in Ulu Muda, Kedah, shows how conservation of water catchment forest can act as a nature-based solution to mitigate extreme weather events, while ensuring a clean water supply and sustaining downstream agriculture, both vital for Malaysia’s food security.  

Introduced in Budget 2020, the EFT is a laudable mechanism by the Federal Government to incentivise states to maintain and expand both terrestrial and marine Protected Areas. Given that states have varying economic structures and revenue sources; this year’s EFT allocation provides a valuable means for them to generate income while protecting natural ecosystems. Of the RM250 million allocated, RM50 million has been set aside as state revenue.  

This can be seen as an effective strategy, particularly if the set aside is for pursuing actions that meet the environment and development nexus in areas like waste management, river restoration, and coastal protection. States would then benefit from additional Federal financial support for development. With clear sustainability guidelines in place, the EFT impact can be further enhanced, and this would help states balance conservation with their development priorities.

However, as the total amount remains unchanged from last year, WWF-Malaysia calls for the government to progressively increase the EFT allocation each year to reach at least 1% of the annual national budget by 2030. This would support long-term planning by the States and prove to be an invaluable investment in the mid to long term to reduce federal disaster relief payouts that are on the rise. 

Similarly, marine biodiversity and conservation receive minimal focus, though the inclusion of coastal erosion mitigation measures is a positive step forward. Current references to the blue economy focus mainly on technical and vocational training, while maritime national security continues to dominate ocean-related allocations. While safeguarding our national waters is crucial for security, it is equally important to recognise their value for fisheries, biodiversity, sustainable tourism, and the livelihoods of coastal communities that depend on healthy marine ecosystems. 

Community stewardship and co-management remain essential in sustaining both people and nature. For example, allocations for community ranger programmes currently highlight iconic terrestrial species such as tigers, orangutans, and banteng, but could be expanded to include marine species such as sea turtles. There is strong potential for Malaysia to better integrate marine conservation into future planning and investment. 

In conclusion, while Budget 2026 reflects progress toward addressing key social priorities such as health and education, greater effort is still needed to realise the SDGs’ goal of leaving no one behind, a core tenet of the MADANI vision. Investing in nature can unlock multiple benefits, and given limited resources, we must get the biggest bang for every ringgit invested to achieve this vision. WWF-Malaysia, therefore, calls for the integration of nature across all development allocations to ensure more holistic and sustainable outcomes for the nation.

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About WWF-Malaysia
 
Established in 1972, WWF-Malaysia is part of WWF, the international conservation organisation. Working to sustain the natural world for the benefit of people and wildlife, WWF-Malaysia’s efforts to conserve nature focus on six major goals - forests, oceans, wildlife, food, climate and energy, as well as freshwater – and three key drivers of environmental problems – markets, finance and governance. Our mission is to stop the degradation of the earth’s natural environment and to build a future in which humans live in harmony with nature.

Find our latest news here:  https://www.wwf.org.my/media_and_information/media_centre_and_updates/