Kuala lumpur: The Federal Government has announced an allocation of RM250 million under the Ecological Fiscal Transfer (EFT) for Biodiversity Conservation mechanism to all state governments for the year 2026. This initiative aims to ensure that local communities receive protection and benefits from the development of natural resources, as stated by Minister of Natural Resources and Environmental Sustainability Datuk Seri Arthur Joseph Kurup.

According to BERNAMA News Agency, Minister Arthur Joseph Kurup highlighted that the incentive is part of the government's proactive measures. As an example, Perlis will receive RM12.1 million to support conservation initiatives, alongside an additional RM1.7 million as state revenue. This was discussed during a question-and-answer session in the Dewan Rakyat, in response to a query from Rushdan Rusmi (PN-Padang Besar) regarding control mechanisms to ensure that natural resource royalties paid to state governments reach communities affected by resource extraction.

The minister emphasized that the EFT Implementation Guidelines stipulate approved funding for programmes involving shared responsibility with communities and local residents, including human resource development training. The Access to Biological Resources and Benefit Sharing Act 2017 is also enforced to ensure fair and equitable benefit sharing with indigenous peoples and local communities, requiring prior community consent and a benefit-sharing agreement before any resource or traditional knowledge is commercially utilized.

Additionally, Thrust 5 under the National Mineral Policy Framework 3 emphasizes Environment, Social and Governance (ESG) principles to promote responsible mineral development, considering the well-being of local communities.