PUTRAJAYA (Jan 19): The government has started the transition to targeted subsidies by reducing subsidies for non-domestic medium and high voltage electricity users, as the blanket rebate is inefficient and unsustainable, said Minister of Natural Resources, Environment and Climate Change Nik Nazmi Nik Ahmad.

“We get a lot of criticism from the industry, but this transition is no longer an option,” the minister said in his new year address to the ministry staff here on Thursday (Jan 19).

He said the government also needs to ensure high reliability of the national electricity supply system and that it would not have a negative impact on the environment, while at the same time maintaining a tariff rate that all residents in Malaysia could afford.

The government, Nik Nazmi said, had also set a target to increase the generation of electricity from renewable energy (RE).

As such, he called for ministry staff to facilitate industry participation, ensure reasonable cost and reduce bureaucracy for RE to be developed.

Separately, Nik Nazmi said the ministry would develop the National Water Policy by emphasising the role of water in the management framework involving the environment, climate change, energy, biodiversity and natural resources.

He said about 90% of natural disasters happening in the world were water-related, either due to floods or droughts, causing millions of losses every year.

The ministry, he said, needs to strengthen the implementation strategy involving the reduction of disaster risk and the impact of climate change, namely floods.

These include the conservation of water catchment areas as natural treasures that are vital for the country’s water resources, he added.