Amir Hamzah: Contrary to rumours, no cut to Sabah’s electricity subsidy, federal support remains strong

KUALA LUMPUR, Nov 14 — A recent allegation that the federal government has withdrawn the allocation of electricity subsidy to Sabah is untrue, said Finance Minister II Datuk Seri Amir Hamzah Azizan.

According to Astro Awani, he said that the federal government remains committed to providing an electricity subsidy of RM3.54 billion over seven years, until 2030, following the transfer of regulatory authority to the state government.

He further explained that this decision was made after an agreement was reached to transfer the regulatory authority of electricity supply to the Sabah state government on January 3, 2024.

“As of September 2024, the federal government has disbursed RM449.4 million in electricity subsidies (out of the total allocation for 2024 of RM507 million), based on claims that have been reviewed and confirmed by ECoS to Sabah Electricity (SESB).

“The remaining allocation of around RM57.6 million will be disbursed once the claims are submitted, and it is expected that this balance will be fully disbursed before the end of this year,” he was quoted as saying during his closing speech at the Supply Bill Committee Stage yesterday.

Meanwhile, Amir Hamzah said that for 2025, the federal government has allocated RM700 million for the electricity subsidy, an increase of RM193 million from the 2024 allocation of RM507 million.

“The federal government is aware of the financial difficulties currently faced by Sabah Electricity.

“The Ministry of Finance, together with the Ministry of Energy Transition and Water Transformation (Petra), is currently reviewing and considering the application for the ICPT payment (June — December 2023) to Sabah Electricity, amounting to RM162 million.

“At the same time, the Ministry of Finance is also considering granting a moratorium on the repayment of Sabah Electricity’s loans to the Federal Government, estimated at around RM65 million,” he added.