Rural Roads Programme Financing Prioritised, Allocation For 2026 Rises To RM3.1 Bln – Amir Hamzah

KUALA LUMPUR, Oct 29 (Bernama) – The government is prioritising the Rural Roads Programme (JALB) project financing with the total allocation for 2026 rising to RM3.1 billion from the original allocation of RM2.11 billion, according to the Finance Ministry (MoF).

Finance Minister II Datuk Seri Amir Hamzah Azizan said the nearly RM1 billion in additional allocation comprises the additional RM500 million for the Rural and Regional Development Ministry (KKDW) and the earlier Notice of Change (NOC) worth RM491 million made by KKDW.

In his winding-up speech on the policy stage of the Supply Bill 2027 (Budget 2027), he said the additional allocation was approved to ensure that the JALB projects could continue and contractors are paid.

Amir Hamzah said the approval, granted through the Expenditure Exceeding Allocation Authorisation Letter (SKB), was issued in stages, with RM300 million approved on Sept 1, 2026, and RM200 million on Sept 21, 2026.

“This allocation was still insufficient to settle existing commitments,” he noted.

Amir Hamzah said the actual expenditure for JALB projects from 2018 to 2022 amounted to RM3.72 billion, while actual expenditure and allocations for the 2023–2027 period reached RM11 billion.

Meanwhile, Amir Hamzah said applications for and approvals of NOCs must be completed before any new expenditure or commitments are undertaken, while any issuance of a new letter of acceptance (SST) should also be supported by sufficient allocations.

“On this basis, MoF requested KKDW on Sept 10, 2026, to defer the issuance of a new SST for JALB.

“Therefore, any claim that MoF cancelled the projects is untrue. MoF only requested that KKDW defer the issuance of a new SST until the existing arrears have been settled,” Amir Hamzah said.

He added that every additional allocation for JALB through reallocation reduces the fiscal space available to fund other priorities.

He said Budget 2027 brings together the strengths of the government, investment institutions, companies, banks, employers and the public based on their respective roles, whereby the collaboration expands the country's capability to provide jobs, facilities and economic opportunities.

He said the RM50.2 billion in additional investments detailed in Budget 2027 comprises RM25 billion from government-linked investment companies (GLICs), RM11 billion from public-private partnerships, and RM14.2 billion from federal statutory bodies and Minister of Finance Incorporated companies.

“Each component has its own funding sources, mandate and approval process,” he added.

-- BERNAMA