Fate of deferred rural projects rests with finance ministry, says Rubiah

Finance minister II Amir Hamzah Azizan informed the Dewan Rakyat that the deferral of letters of acceptance for rural development projects was contingent upon the finance ministry's determination. Deputy rural and regional development minister Rubiah Wang clarified that her ministry complied with the finance ministry's decision to halt all yet-to-issued SSTs, encompassing pending issuance and projects ready for tender.

She emphasized that the finance ministry's decision lacks a specific timeline, as an SST remains valid for two to three months. Should no further approval be obtained within six months, the ministry would be compelled to cancel the project and commence the process anew.

Chong Zhemin from PH-Kampar sought confirmation that no Sabah rural development projects had been cancelled but only deferred owing to the SST issuance suspension. Rubiah elaborated that the finance ministry's motivation for deferring SSTs was to stabilize the ministry's finances, specifically its allocations. She cautioned that this predicament might endure for another two to three years if prompt action is not undertaken.

Additionally, under the 13th Malaysia Plan guideline, projects unable to be tendered or implemented within two years face a high risk of cancellation.

Earlier this month, deputy prime minister Ahmad Zahid Hamidi disclosed to the Dewan Rakyat that certain projects in Sabah and Sarawak approved for 2026 were halted on the orders of the rural and regional development ministry's secretary-general, despite funds being allocated. However, finance minister II Amir Hamzah Azizan asserted that the government had merely postponed issuing new letters of acceptance until outstanding payments to contractors were settled, maintaining that no issued letters had been cancelled.

Zahid later defended his assertions, asserting that the postponement or cancellation of project letters of acceptance was accurate and that he was prepared to present documentary evidence of the official directive. RSN Rayer (PH-Jelutong) subsequently demanded that Zahid furnish the letter substantiating the cancellation of rural development projects in Sabah and Sarawak.