KKDW reallocates RM200mil from rural housing to settle road project arrears
KUALA LUMPUR: Constraints in implementing the Sejahtera People’s Housing Programme (PPRS) have prompted the Rural and Regional Development Ministry to reallocate RM200 million from its 2026 allocation to settle outstanding payments for rural road projects.
The Rural and Regional Development Ministry in Malaysia has shifted RM200 million from its 2026 Rural Housing Programme allocation to address outstanding payments for rural road projects. Deputy Minister Datuk Rubiah Wang explained that this adjustment came due to constraints such as land ownership disputes, unsuitable sites, and overlapping applicants.
She emphasized that the reallocation was made through a Notice of Change to ensure the annual allocation wasn't left unspent. Rubiah stressed that the reallocation doesn't mean the ministry is ignoring its welfare agenda, and the provision of housing remains a priority. The move was necessary as many project delays had occurred, causing some projects to be postponed.
The 2027 budget for PPRS has been allocated at RM416.2 million, with 12,457 recipients set to benefit from new housing and home repair projects nationwide. However, the Finance Ministry's directive on September 10 last year to defer Letters of Acceptance for spending control purposes has also impacted rural road project implementation.
The absence of a fixed timeline from the Ministry of Finance risks cancelling new project tenders if approval isn't obtained within six months. An example of this was seen in Sabah, where 20 rural road projects at the pre-implementation stage had their SSTs frozen, while 62 projects in the construction phase would proceed.
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