Malaysia’s Budget 2027, tabled by Prime Minister Anwar Ibrahim in the Dewan Rakyat on October 9, 2026, includes a RM15 billion investment by Tenaga Nasional Berhad to strengthen the national electricity grid, alongside energy storage, green financing and household efficiency measures. The government said the energy transition must be intensified to secure long-term electricity supply, and TNB said on October 10 that the allocation aligns with its existing infrastructure programme.
Key Facts At A Glance
- Budget 2027 was tabled in the Dewan Rakyat on October 9, 2026.
- Tenaga Nasional Berhad will invest RM15 billion to strengthen the national grid.
- UEM Lestra Berhad will invest RM1 billion, including an energy storage project at KLIA and a 1 GW hybrid energy project in Johor.
- The RM1 billion KWAP Climate Fund will be used for green projects such as renewable energy and decarbonisation.
- The Nur Madani scheme offers rebates of up to RM200 for energy-efficient air conditioners and refrigerators.
- TNB said the RM15 billion forms part of its RM43 billion investment plan for 2025 to 2027.
- TNB reaffirmed support for a 70 percent renewable energy share in installed generation capacity by 2050.
Tenaga Nasional Berhad will invest RM15 billion to strengthen Malaysia’s national electricity grid and meet continuing growth in electricity demand, Prime Minister and Finance Minister Anwar Ibrahim said when tabling Budget 2027 on Friday, October 9, 2026.
Anwar said Malaysia had weathered the impact of the Middle East crisis but that the energy transition agenda must be intensified to ensure the long-term sustainability of the country’s energy supply.
Storage, Hybrid Projects And Green Financing
Under the budget, UEM Lestra Berhad will invest RM1 billion, including an energy storage project at Kuala Lumpur International Airport and a one-gigawatt hybrid energy project in Johor. The RM1 billion Retirement Fund (Incorporated) Climate Fund, known as KWAP Dana Iklim+, will be used for green projects including renewable energy development and decarbonisation.
The budget also introduces the Nur Madani scheme, offering rebates of up to RM200 to buyers of energy-efficient air conditioners and refrigerators. Anwar said hot weather had contributed to higher household electricity consumption.
Beyond the peninsular grid, the budget speech said the Southern Link Transmission Line project will continue as a long-term measure to secure electricity supply in Sabah. Electricity supply is also being improved at tahfiz schools, pondok institutions and Orang Asli settlements.
TNB Response
In a statement on Saturday, October 10, Tenaga Nasional Berhad welcomed the budget measures to strengthen the national grid, expand consumer protection and support the energy transition. The utility said the RM15 billion in new grid spending is part of its RM43 billion investment plan covering 2025 to 2027.
TNB also highlighted the extension of electricity bill protection for households using up to 800 kWh per month until the end of 2026, which it said benefits more than eight million domestic users. The company reaffirmed its commitment to expanding renewable energy capacity in support of Malaysia’s target of a 70 percent renewable energy share in installed generation capacity by 2050.
TNB added that its Bumiputera vendor development programme had channelled RM11 billion to more than 1,200 businesses as of June 2026.
Project-level details, including timelines and specific grid components under the RM15 billion allocation, were not disclosed in the budget speech or TNB’s statement.