Kota Kinabalu: Certain development projects in Sabah and Sarawak have not been cancelled but deferred due to insufficient funds to ensure government spending stays within the approved budget, says Minister in the Prime Minister’s Department (Sabah and Sarawak Affairs) Datuk Mustapha Sakmud.
He said the postponement of new Letters of Acceptance (SST) on Sept 10 served as a financial control measure to prevent the accumulation of outstanding contractor payments rather than a blanket cancellation of works.
According to him, projects exceeding initial costs may still proceed subject to additional allocations sought from the Finance Ministry, which previously approved RM500 million this year to settle outstanding Rural Road (JALB) contractor dues.
Mustapha noted that Sabah’s total federal allocation will rise by 6.2 per cent to RM18.69 billion in 2027 from RM17.59 billion in 2026, comprising grants, operating expenditure, and development expenditure, excluding the RM1.5 billion interim payment.
He added that claims alleging project cancellations in the Borneo states should be substantiated with specific project lists and figures, maintaining that development across Sabah and Sarawak remains a federal priority.
