He said the money was allocated as part of the Ecological Fiscal Transfer (EFT), which helps states preserve areas that provide essential environmental benefits, such as water catchments and wildlife habitats.

“The EFT is intended as an incentive, not as direct compensation,” he said in a parliamentary reply to Lee Chean Chung (PH-Petaling Jaya).

Nik Nazmi said a total of RM127 million in EFT funds was given to states last year, while another RM190 million was disbursed this year.

He said the funds were distributed based on three factors – an initial amount for states that provided updated data on protected areas, with RM200,000 given to states that did so; followed by the size of land, freshwater and marine protected areas (which determined most of the funds); and a performance-based assessment of each state’s conservation efforts.

He said Sabah received the largest share, with RM16.4 million in 2023 and RM36 million in 2024, totalling about RM52.4 million over two years.

Pahang and Sarawak also received significant amounts, with each state getting roughly RM33 million. Melaka and Penang received the least, with around RM7.3 million and RM8.3 million, respectively.

Other states – Johor, Kedah, Kelantan, Negeri Sembilan, Perak, Perlis, Selangor and Terengganu – saw allocations ranging from RM11 million to RM33 million across 2023 and 2024.