Sabah, Sarawak rural road funding has not been cancelled, says minister

Kota Kinabalu, Oct 29 — Allegations surrounding the reduction or cancellation of rural road funding in Sabah and Sarawak by the Madani Government must be evaluated with accurate information, stated Sabah PKR Leadership Council Chairman Datuk Mustapha Sakmud. He urged any party to raise the issue to provide detailed information, including an official list of projects, allocation amounts and their progress.

Mustapha, also the Minister in the Prime Minister’s Department (Sabah and Sarawak Affairs), clarified that the postponement of new Letters of Acceptance (SST) on September 10 was an internal control measure to prevent contract commitments from surpassing the annual limit, not the termination of approved projects. He emphasized that the national allocation for JALB has been increasing, from RM2.11 billion in 2026 to RM2.27 billion in 2027, unlike previous years, where it never surpassed RM1 billion.

The Ministry of Finance approved an additional RM500 million in 2026 to address payment backlogs for JALB contractors, ensuring the fulfillment of existing project commitments. Mustapha made these remarks following a special coordination meeting of the Kota Kinabalu Disaster Committee at Kota Kinabalu City Hall. He highlighted the federal government's ongoing commitment to Borneo region development, with the 2027 budget allocating RM18.7 billion to Sabah, up from RM17.6 billion, and RM16.2 billion to Sarawak, up from RM15.1 billion.

Furthermore, RM3.3 billion has been earmarked for road project implementation in Sabah and Sarawak, aimed at continuing the development of strategic road networks. Mustapha stressed that improving basic facilities in Sabah and Sarawak remains a long-term priority for the Madani Government to enhance connectivity and bridge regional disparities.