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Earth Matters

Malaysia’s EFT Scheme: What’s Working, What’s Not

16 Apr 2025

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Malaysia’s forests and ecosystems are critical to both our natural heritage and climate goals — and yet, managing them often falls to state governments with limited resources and incentives. That’s where the Ecological Fiscal Transfer, or EFT, comes in: a federal funding mechanism designed to reward states for protecting their natural assets. But how well is it working, and what could make it stronger? To explore these questions, we speak to Samantha Ho, a regional correspondent with media company EcoBusiness, who recently co-authored a two-part series on EFTs for Macaranga, exploring how EFTs function on the ground. We also speak to environmental lawyer Preetha Sankar, who joins us to offer a legal perspective on how these funds could be better supported by policy and regulation. Image Credit: ShutterstockSee omnystudio.com/listener for privacy information.

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