2026 Sarawak Budget: Free Water Continues as RM800 Million Poured Into Utilities Upgrade

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The Sarawak government will extend its ‘Free Water’ programme in 2026, continuing to subsidise the first RM5 of monthly domestic water bills for households statewide.

When presenting the 2026 Sarawak Budget at the State Legislative Assembly (DUS) today, Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said the initiative will proceed next year with an allocation of RM21 million.

The State will also maintain the Connection Charges Government Financial Assistance, which helps low-income urban households access essential utilities. This programme will receive RM12 million in 2026.

Abang Johari highlighted that Sarawak currently has 86% water supply coverage, with full coverage in urban areas and 70% in rural districts.

“With this progress, our priority now is to expand water supply access in rural areas. Guided by the Sarawak Water Supply Master Plan, initiatives such as the Water Supply Grid and the Sarawak Alternative Water Supply (SAWAS) are essential to reach remote communities, especially where grid extension isn’t practical,” he said.

To support these efforts, RM409 million has been allocated for water infrastructure projects in 2026, including:

  • Engkilili Regional Water Treatment Plant (Sri Aman)
  • Upgrading of Salim Treatment Plant (Sibu)
  • Serian Regional Water Supply Phase II
  • Upgrading of Treatment Plant No. 4 (Batu Kitang)
  • Mukah Water Treatment Plant
  • Pipelines for the Darul Hana project
  • Lundu/Sematan Regional Water Supply (Kuching)

Additionally, RM402 million under Alternative Funding will be channelled towards the Sarawak Water Supply Grid Programme for Stressed Areas and the Upgrading and Replacement of Water Pipelines Programme.

To boost rural electricity access, RM46 million will be allocated in 2026 for rural electrification initiatives such as the Additional and Late Application Fund (ALAF), connecting Sarawak Alternative Rural Electrification Scheme (SARES) villages to nearby grids, replacing batteries and key components for standalone solar systems, and upgrading electricity supply in the Samarahan Division.

“This effort will be strengthened with an additional RM153 million under Alternative Funding next year to implement the Rural Electrification Scheme,” Abang Johari added.

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