Budget 2027: Kelantan, Terengganu, Perlis, Kedah, Sabah, Sarawak get RM21.26b development allocation

In a move aimed at fostering development and bridging the gap between states, the Malaysian government has allocated RM21.26 billion in development expenditure to six underdeveloped states for Budget 2027. Economy Minister Akmal Nasrullah Mohd Nasir revealed that the allocation is tailored to each state's specific needs and reflects the government's commitment to infrastructure development and the implementation of previously announced projects.

The six states receiving the funds are Kelantan, Terengganu, Perlis, Kedah, Sabah, and Sarawak. Akmal emphasized that the allocation is dedicated to driving economic growth and reducing disparities between states, regardless of political differences. The 13th Malaysia Plan (13MP) allocation will persist despite political opposition, maintaining the federal government's responsibilities.

The minister also highlighted that the development spending, out of a total RM83 billion earmarked for development in Budget 2027, will prioritize infrastructure projects, economic opportunities creation, and social mobility enhancement. Key priorities include school and healthcare facility development, tackling climate change impacts, and addressing the impacts of flooding in Kelantan through a dam project and constructing a water treatment plant in Machang.

He stressed that the Ministry of Economy assesses development expenditure based on desired outcomes, ensuring projects deliver intended objectives. Delays caused by factors such as site incompatibility and utility relocation must be managed carefully without being used as excuses. The ministry is now evaluating preliminary studies before approving full project applications to prevent issues being identified only after a project has commenced.

Akmal noted that a construction project with a three-year timeline can lead to unreasonable wait times if site identification and other initial phases take two years.