[CLSTR]
< Back to situations

Monitor this situation.

[SITUATION] · [ACTIVE] · [BUSINESS]

2 clusters · 5 sources · 5 days · First seen · Last updated

Malaysian rural road budget spending dispute

Overview

The Malaysian Ministry of Finance (MoF) reported that the Ministry of Rural and Regional Development (KKDW) has consistently exceeded its approved annual budgets for rural road projects. Treasury Secretary-General Tan Sri Johan Mahmood Merican noted that while all allocated funds were disbursed, spending surpassed allocations in 2023, 2024, and 2025, leading to payment delays for contractors.

To resolve these arrears, the MoF approved an additional RM300 million for 2026 and is working with KKDW to restructure allocations and identify savings from other ministries.

In response, Deputy Prime Minister and Minister of Rural and Regional Development Ahmad Zahid Hamidi denied allegations of overspending, stating the ministry adheres to announced budget amounts. He clarified that the ministry occasionally covers necessary expenses not specifically earmarked and noted that contractors have faced cash-flow issues due to the aforementioned payment delays.

Entities

Ministry of Rural and Regional Development · Johan Mahmood Merican · Ahmad Zahid Hamidi · Treasury · Ministry of Finance

Timeline

  1. 5 days ago

    [POLITICS] 2 sources
    Ahmad Zahid denies ministry overspent approved budget

    Minister Ahmad Zahid Hamidi denied claims that the Ministry of Rural and Regional Development has exceeded its approved budget, despite Treasury reports showing increased spending on rural road projects.

  2. 10 days ago

    [BUSINESS] 4 sources
    Ministry of Finance clarifies KKDW rural road spending exceeds allocations

    Malaysia's Ministry of Finance clarified that KKDW has exceeded its approved rural road project budgets since 2023, leading to contractor payment issues despite full fund disbursement.

Sources

freemalaysiatoday.com · malay.news · malaysiadateline.com · mgperak.com · utusan.com.my