Kota Kinabalu: Allocations for certain projects in Sabah and Sarawak have not been cancelled but deferred due to insufficient funds, said Minister in the Prime Minister’s Department (Sabah and Sarawak) Datuk Mustapha Sakmud.
He said the postponement was necessary to ensure government spending remained within the approved budget.
“The projects have not been cancelled, only postponed. Some may be able to proceed, but additional allocations would have to be sought from the Finance Ministry if the costs exceed the approved budget,” he told reporters after chairing the Special Coordination Meeting of the Kota Kinabalu District Disaster Committee with City Hall (DBKK), here, Wednesday.
Mustapha, who is also Sabah PKR Chief, said the Federal Government’s original allocation for the Rural Road (JALB) programme had increased from RM2.11 billion in 2026 to RM2.27 billion in 2027.
He said the allocation had not reached RM1 billion before the Madani Government, with RM1.09 billion first provided in 2023.
He also said the Finance Ministry approved an additional RM500 million in 2026 to help settle outstanding payments to JALB contractors.
Mustapha said the postponement of new Letters of Acceptance (SST) on Sept 10 was a financial control measure to prevent further accumulation of outstanding payments, rather than a blanket cancellation of development projects.
He said the Government had also instructed the Rural and Regional Development Ministry to prepare funding projections up to 2027 based on contracts already awarded, to ensure existing projects could continue with more orderly financial management.
Mustapha said Sabah’s total allocation for 2027 had increased to RM18.69 billion from RM17.59 billion this year, representing a 6.2 per cent rise.
The allocation comprised grants, operating expenditure and development expenditure.
Grants, including those for road maintenance and the Malaysian Road Records Information System (Marris), would increase from RM1.90 billion this year to RM2.82 billion next year.
Operating expenditure would rise from RM8.8 billion to RM8.9 billion, while development expenditure would increase from RM6.89 billion to RM6.97 billion.
He stressed that the RM18.69 billion allocation covered Sabah’s administration and development and did not include the RM1.5 billion interim payment.
Mustapha said the 2027 Budget also increased the Federal allocation for Sarawak from RM15.1 billion to RM16.2 billion, with RM3.3 billion provided for road projects in both states.
He said claims that Sabah and Sarawak had been victims of project cuts or cancellations should be supported by evidence, including the list of projects involved, allocation amounts and their cancellation status.
“Development in Sabah and Sarawak remains a long-term investment and a priority of the Madani Government,” he said.
