Peruntukan ada tapi projek Sabah dan Sarawak tersekat isu tanah, logistik

Economists argue the most important factor is ensuring projects are completed on schedule, of good quality and truly benefiting the people of Sabah and Sarawak. Two economists note that low spending rates do not necessarily indicate the federal government failed to provide funds or lack commitment to development in the two states.

The head of Bank Muamalat Malaysia Bhd, Afzanizam Abdul Rashid, explains that the budget does not equal execution as the money may have been allocated, but several processes must be completed before it translates into physical infrastructure like roads, bridges, schools or water supply. The bottleneck lies in the execution phase, involving practical matters rather than just the amount of allocation.

In November 2024, the Deputy Prime Minister (Federal Territory) Dr Zaliha Mustafa stated that Sabah and Sarawak each record 1,244 and 1,124 development projects respectively, the highest in the country. However, the spending rates were only 46.7% and 54.43% at that time. The performance of Sabah improved in 2025 when the Finance Ministry (MoF) announced that RM5.9 billion or 89% of the RM6.7 billion allocated for state projects had been saved.

MoF previously explained that project expenditures are managed by execution agencies based on progress and project status. Afzanizam points out that Sabah and Sarawak's expansiveness, scattered locations, topography and remote project sites increase complexity. He adds that logistically and land acquisition issues can also delay projects.

For instance, in the Sarawak-Sabah Link Road Phase 2, land acquisition and site clearance began in January 2025, but the land acquisition for some sections is still ongoing. He emphasizes that if any link in the chain such as land, approval, contractor or logistics fails, the entire project schedule can be jeopardized. Meanwhile, Tan Peck Leong from Universiti Teknologi Mara (UiTM) says that the budget allocation does not mean the entire money is paid upfront; rather, payments are made incrementally based on completed work and certification.

For example, if a contractor completes half the work, the government should not pay the full value of the project to only demonstrate a high spending rate. Afzanizam stresses that what matters most is ensuring projects are completed on time, of good quality and truly benefitting the people of Sabah and Sarawak.