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THE Sarawak government has allocated RM988 million for the continued development of the Kuching Urban Transportation System (KUTS) next year, alongside RM124 million to support Sarawak Metro’s operations.
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said the development allocation would be provided under the Alternative Funding initiative, while the operating allocation would support the pilot phase and preparations for commercial service.
He said the pilot route would run from the Rembus Depot in Samarahan to Northbank in Stutong, supported by hydrogen feeder buses and the hydrogen production plant at the depot.

“Sarawak is advancing its clean-energy future through the KUTS, with the pilot deployment of hydrogen-powered Autonomous Rapid Transit (ART) in 2026, followed by full rollout from 2027.
“In addition, this budget provides RM124 million to Sarawak Metro to support operations, including the pilot phase, and to ensure full operational readiness for commercial service,” he said when tabling the Supply (2027) Bill, 2026 on Monday (Oct 12).
Abang Johari said the state government would also initiate a study to formulate a more comprehensive regulatory framework and laws for hydrogen development in Sarawak.
He explained that the framework would cover hydrogen production, distribution, utilisation, standards, safety and commercial export.
“By providing legislative clarity and regulatory certainty, this landmark framework will enhance investors’ confidence, facilitate industry development and accelerate the growth of Sarawak’s hydrogen economy, in line with our net-zero aspirations,” he said.
Abang Johari pointed out that the initiatives formed part of efforts to operationalise Sarawak’s Green Energy and Strategic Technology Hub, positioning the state as a leader in the global energy transition.
The budget would lay the foundation for the hub by mobilising resources to accelerate renewable energy development, advance research and development, and forge partnerships to drive high-value industries.
“In charting Sarawak’s future, we recognise that economic strength must be matched by sustainable development,” he added.

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