Budget 2027: KKR Seeks Higher Allocation To Meet Development Needs

PUTRAJAYA,  Aug 13 (Bernama) -- The Ministry of Works (KKR) hopes to secure a higher allocation under Budget 2027 compared with the previous year to meet development needs and ensure better services for the people, said its minister, Datuk Seri Alexander Nanta Linggi.

He said the request for additional funding is based on the ministry's actual requirements, while acknowledging the current economic environment and the government's prudent spending approach.

"We are requesting more than what was allocated for 2026 because there is a genuine need. This is not an arbitrary request. Although we understand the economic situation and related factors, the people's needs must remain a priority, which necessitates a higher allocation than in 2026," he said.

He told reporters this after the KKR Industry and 2027 Budget Dialogue Session held here today. Also present were Deputy Works Minister Datuk Seri Dr Ahmad Maslan and KKR Secretary-General Datuk Seri Azman Ibrahim.

Nanta said, however, that the final allocation would be determined by the Ministry of Finance, adding that the ministry is prepared to operate within any funding constraints imposed.

He stressed that the ministry could not rely solely on additional funding, but must also improve implementation efficiency to ensure every allocation generated the maximum benefit for the people.

"We are exploring ways to improve our efficiency and effectiveness. Even if the allocation is not entirely sufficient, greater efficiency will enable us to deliver the best possible results," he said.

Regarding the proposed allocation for the ministry’s six construction sector transformation agendas, Nanta said the funds would not be distributed equally, as each agenda has different requirements.

The six agendas proposed by KKR for the 2027 Budget are strengthening road networks and high-impact projects; empowering sustainable development in line with the National Energy Transition Roadmap (NETR); strengthening digitalisation and Industry 4.0; developing local capacity, enhancing road safety through the MYJalan initiative; and improving regulations and strengthening human capital.

Meanwhile, Nanta said construction material prices remain generally stable based on data from the Department of Statistics Malaysia (DOSM), despite concerns raised by industry players over rising costs.

He said although the data showed some increases, the rate was below one per cent, significantly lower than the increases perceived by some industry players.

He added that the ministry and the Construction Industry Development Board (CIDB) are gathering information from suppliers to obtain a clearer picture of the actual movement in construction material prices.

Earlier, Nanta said the dialogue session, attended by about 150 representatives from industry stakeholders and relevant agencies, provided an avenue for the ministry to gather feedback from construction industry players as input for the ministry's 2027 Budget proposal.

Among the key issues raised were construction material and operating costs, labour, and taxation.

-- BERNAMA