MOF never ordered rural road projects cancelled, only deferred new contracts, says Tengku Zafrul

KUALA LUMPUR, Oct 30 — Prime Minister's senior political adviser Tengku Datuk Seri Zafrul Tengku Abdul Aziz clarified that the Finance Ministry (MOF) never ordered the cancellation of rural road projects. Instead, it only deferred new contracts to prevent debt from rising among contractors, according to Tengku Zafrul. He explained that this deferment was necessary due to rural road development expenditures surpassing the original allocations given by Parliament annually since 2022, which led to higher contractual commitments and outstanding payments.

The deferment of new contracts is not the same as cancelling existing projects, and MOF has never issued any order to do so. Tengku Zafrul emphasized that prudent financial management requires both proper allocation and ensuring sufficient funds for payments, not just approving projects. He pointed out that rural road expenditures for the 2023-2027 period increased to RM11 billion from RM3.7 billion between 2018-2022, a nearly threefold rise.

In Sabah and Sarawak, the yearly expenditure reached RM1.41 billion this year, the highest in the past decade. Out of the total rural road spending, about half goes to Sabah and Sarawak every year. He noted that Sabah and Sarawak have been given priority, not sidelined. The Finance Minister approved extra RM500 million for 2026, using savings from other ministries, to settle outstanding contractor payments.

The government acknowledges that many villages in Sabah and Sarawak still need improved road access. The Budget 2027 allocated RM2.27 billion for rural road development in these states, the highest among all regions. Tengku Zafrul stressed that development matters in Sabah and Sarawak should not be used for political gain. He reiterated that allocations and good governance are crucial, with the priority being the implementation of projects, payment to contractors, and benefit to the people.