Funds allocated, but Sabah, S’wak projects held up by local issues
Economists say a low spending rate does not necessarily mean the federal government lacks commitment, as project progress depends on implementation on the ground.
Development projects in Sabah and Sarawak are facing delays due to local factors, according to economists. Land acquisition, logistics, terrain, and coordination between agencies are among the challenges slowing progress, said economist Afzanizam Rashid. While funds may have been allocated, they must first go through multiple approval and implementation stages before becoming roads, bridges, schools, or water supply systems.
The obstacles to implementation may involve practical matters rather than just the size of the allocation, Rashid noted. In November 2024, Sabah and Sarawak recorded the highest number of federal development projects in the country, with 1,244 and 1,124 projects respectively. However, their spending rates for development projects were only 46.7% and 54.43% in the same year.
In 2025, Sabah's spending on development projects reached 89% of its RM6.7 billion allocation, indicating improvement. However, implementing projects remains complex due to Sabah and Sarawak's vast geography, scattered settlements, difficult terrain, and the distance of project sites from economic centers. For example, the Sarawak-Sabah Link Road Phase 2 project has faced delays in land acquisition for parts of its alignment, potentially impacting the entire project schedule.
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- Funds allocated, but Sabah, S’wak projects held up by local issues freemalaysiatoday.com
