By Danial Dzulkifly
SHAH ALAM, Nov 19 — Selangor expects to generate RM72 million in additional revenue through new environmental policies next year, Menteri Besar Dato' Seri Amirudin Shari told the State Legislative Assembly today.
The projected revenue boost will come from new rates and tariffs implemented under the Zero Discharge Policy (ZDP) and Polluter Pays Principle (PPP), via the Selangor Water Management Authority (Luas).
“Luas has provided new revenue streams, and in 2024, the estimated contribution is between RM17.5 million and RM18 million.
“With the introduction of new rates and tariffs, contributions from Luas are projected to reach RM72 million by 2025, following the ZDP and PPP implementation based on the Luas Enactment 1995,’’ he said during the oral question session.
Amirudin was responding to Batu Tiga state assemblyman Danial Al-Rashid Haron, who inquired about the current state of Selangor’s financial performance.
Similarly, the state is looking towards higher contributions from state owned companies for the coming year.
The Menteri Besar noted that for 2024, Menteri Besar Selangor (Incorporated) or MBI contributed approximately RM30.3 million, while the Selangor State Development Corporation (PKNS) is projected to provide an additional RM10 million, meeting the target of RM40 million.
The Selangor Agricultural Development Corporation (PKPS) and Worldwide Holdings Bhd have pledged RM2.15 million and RM2.03 million, respectively, with some funds already utilised for community initiatives like the Jelajah Ehsan Rahmah programme and Hari Raya Aidiladha sacrificial animal contributions.
He added that the state government is counting on Federal grants including the Malaysian Road Records Information System (Marris) and the Ecological Fiscal Transfer for Biodiversity Conservation (EFT), as well as tourism allocations, to boost Selangor’s financial capacity to effectively service the people.
However, Amirudin acknowledged that the state requires greater financial support from the Federal government to assist small and medium enterprises (SMEs).
While current state initiatives, such as Hijrah Selangor, effectively cater to micro-businesses, they fall short in addressing the broader and more significant needs of larger SMEs.
"SMEs require funding between RM200,000 and more than RM1 million to stay competitive. We have proposed allocating five percent of Federal funds (from the tax revenues) to all states to address this gap, which could transform both SME development and the growth of all states," he said.
