Zahid denies sabotaging Madani government over Sabah, Sarawak projects

The Malaysian government anticipates recovering approximately RM5 billion from the cancellation of two pipeline projects in Sabah, as revealed in the Dewan Rakyat today. Prime Minister Anwar Ibrahim disclosed that this amount constitutes part of an initial RM8 billion loan allocated to the Trans Sabah Gas Pipeline and Multi-Product Pipeline projects.

The funds are now slated to be repurposed for water supply schemes in Perak and Penang, as per an agreement signed between Suria Strategic Energy Resources Sdn Bhd (a wholly-owned entity of the Finance Ministry) and China Exim Bank on October 30. This redirection is expected to diminish the national loss to RM3 billion, accounting for the RM1.5 billion already expended.

Prompted by Datuk Jonathan Yasin's inquiry during Minister's Question Time, Anwar elaborated on the recovery process. He elaborated that the RM5 billion would fund water transfer projects from the Perak River to the Bukit Merah Dam, upgrades along the Kurau River and main canal, and water treatment facilities in Kerian and Boga.

The envisioned daily capacity for Perak is 700 million liters, encompassing the Kerian industrial belt, 300 million liters for Penang, and 500 million liters for agricultural irrigation. Contracts for these projects will be issued through open tender, with a stipulation for Malaysian contractors. Additionally, Anwar highlighted Malaysia's pursuit of other energy initiatives in Sabah, such as the RM644 million Lahad Datu Battery Energy Storage System, ongoing since June 2025, the RM765 million Southern Link transmission line, and the RM4 billion Ulu Padas hydroelectric project, slated for completion in 2030.