Environmental groups in Malaysia have urged the government to allocate increased funding in Budget 2027 to address pressing environmental challenges, particularly plastic pollution and climate resilience in urban areas.

Meena Raman, president of Sahabat Alam Malaysia, emphasized the need for a moratorium on approvals for data centres until a thorough environmental impact assessment is conducted. She highlighted concerns over the energy and water consumption of these facilities and called for regulations requiring public consultation and environmental assessments before allowing their establishment. Raman also advocated for the introduction of a carbon tax targeting the iron and steel sector this year, with an expansion to include other significant carbon emitters such as power generators and petrochemical companies. She suggested that revenue from such taxes be redirected to support renewable energy transitions and to assist vulnerable populations affected by rising energy costs.

In addition, Raman called for a tax on the entire lifecycle of plastics—production, manufacturing, sales, use, and disposal—as a critical step to reduce plastic waste. She urged government authorities to enforce bans on problematic and unnecessary single-use plastics and packaging.

Echoing the call for stronger climate adaptation measures, Saravanan Thambirajah, president of the Water and Energy Consumer Association of Malaysia, recommended increased investments in upgrading drainage systems, river maintenance, flood mitigation infrastructure, early-warning systems, and community preparedness programs. Saravanan stressed the importance of preventative measures over repeated expenditure on disaster recovery and compensation.

He also highlighted the urgency of accelerating the implementation of Extended Producer Responsibility (EPR) policies, focusing particularly on packaging and plastic waste. According to Saravanan, producers should bear greater responsibility for the entire lifecycle of their products, including collection, recycling, and disposal. To combat plastic pollution and illegal dumping, he proposed equipping local authorities and enforcement agencies with sufficient funding, manpower, and technology to monitor violations and enhance enforcement actions.

Both environmental advocates underscored the need for broader investment in urban greening initiatives, such as planting trees, developing green spaces, and promoting “sponge cities” that enhance climate resilience by naturally managing floodwaters. Saravanan also pointed out that extreme heat intensifies electricity demand due to a higher reliance on air conditioning, further stressing the importance of cooling initiatives and climate-resilient infrastructure.

Together, these recommendations reflect a push for Budget 2027 to support a sustainable transition in Malaysia—from reactive waste management and environmental responses toward proactive prevention, responsible production, and long-term climate adaptation strategies.