Accra:The Ecological Fiscal Transfer (EFT) fund has been increased to RM270 million as part of a strategic initiative to enhance environmental sustainability and economic resilience amid the challenges posed by climate change.
According to BERNAMA News Agency, Professor Dr. Mohd Fadhil Md Din, an expert in sustainability and the environment, emphasized that conservation efforts now extend beyond traditional activities to include flood management, water security, and the restoration of coastal ecosystems. He suggests that the fund will enable state governments to enhance habitat protection and develop sustainable economic activities based on natural resources.
Professor Mohd Fadhil advocates for the EFT fund to focus on specific outcome indicators such as genuine habitat protection, reduced deforestation, improved biodiversity, and the safeguarding of water catchment areas. He believes that the fund can effectively link environmental conservation with state economic development, reducing reliance on the exploitation of natural resources. Additionally, he proposes strengthening Natural Capital Accounting and the Natural Ecological Balance Sheet to transform the value of natural assets into measurable economic benefits.
Meanwhile, Associate Professor Dr. Siti Suriawati Isa from Universiti Putra Malaysia views the EFT fund increase as a progressive step by the federal government, providing direct incentives to states preserving protected areas. However, she warns that the fund should be considered seed funding and monitored closely to prevent implementation issues. Dr. Siti Suriawati suggests that EFT should be provided through statutory grants to ensure sustained conservation efforts.
Associate Professor Dr. Mohamad Faiz Mohd Amin from Universiti Malaysia Kelantan highlights the crucial role of conserving forests, mangroves, and peatlands in carbon storage and ecosystem resilience. He also welcomes the RM100 million allocation for retention ponds and river maintenance in the Klang Valley to mitigate flash flood risks. Additionally, he supports the Lebir Dam project in Kelantan as a long-term strategy for flood management and water resource security.
Prime Minister Datuk Seri Anwar Ibrahim announced the EFT fund increase during the Budget 2027 presentation on October 9, aiming to support state governments in conserving the nation's natural heritage while promoting community-based economic activities and ecotourism.