KKDW’s rural road overspending triggers RM300m MOF bailout
THE Rural and Regional Development Ministry (KKDW) has consistently spent beyond its approved allocations for rural road projects, with the excess reaching hundreds of millions of ringgit annually and prompting the Finance Ministry (MOF) to step in t...
The Finance Ministry has approved an additional RM300 million and is seeking savings from other agencies to settle unpaid bills to contractors for rural road projects. The Rural and Regional Development Ministry (KKDW) has consistently overspent its approved budget for these projects, with excesses exceeding RM700 million annually since 2022.
Treasury Secretary-General Tan Sri Johan Mahmood Merican explained that KKDW's spending exceeded its annual allocations for rural roads because much of its allocation had already been committed and spent. The ministry spent RM1.8 billion in 2023 against a RM1.1 billion allocation, RM2 billion in 2024 against a RM1.3 billion allocation, and RM2.3 billion in 2025 against a RM1.6 billion allocation.
For 2026, KKDW has spent RM1.9 billion against a RM2.1 billion allocation. The Finance Ministry is working with KKDW to address the payment issue and is also identifying savings from other ministries to help cover KKDW's excess commitments.
Written by urgent.news from The Vibes's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- MoF denies blocking rural road funds nst.com.my
