Sabah, Sarawak get RM11b rural road funding

Prime Minister's senior political adviser, Tengku Zafrul Aziz, has clarified that Sabah and Sarawak have not been neglected in rural road development projects. He explained that the government's allocation for these two states is set to nearly triple between 2023 and 2027, compared to the previous five years. Rural road spending is expected to reach RM11 billion for the 2023-2027 period, a significant increase from RM3.7 billion between 2018 and 2022.

This rise in funding underscores the government's commitment to improving rural infrastructure, especially in Sabah and Sarawak, which account for about half of the country's total rural road expenditure each year.

Tengku Zafrul highlighted that the actual expenditure on rural road development in these states reached RM1.41 billion this year, the highest in a decade. Over the past four years, a total of RM4.6 billion has been spent. He emphasized that Sabah and Sarawak have been prioritized and not sidelined. The deferment of several rural road projects should be understood in the context of national fiscal management and the rising contractual commitments that have exceeded the original allocations approved by Parliament.

The finance ministry has had to balance funding requirements across all ministries, including those responsible for health, education, and rural development. When a ministry exceeds its approved parliamentary allocation, the finance ministry seeks ways to cover the shortfall. In this case, the prime minister, serving as the finance minister, approved an additional RM500 million in expenditure for 2026.

This additional funding was sourced from savings in other development allocations to settle outstanding payments to contractors. Tengku Zafrul clarified that the deferment of new contracts does not mean existing projects have been cancelled. The finance ministry has not issued any directive to terminate these projects. Instead, the deferment aims to prevent mounting outstanding payments and maintain control over the government's financial commitments.