Zahid says RM6.1b rural road spending within revised allocation, denies RM2.1b overspending

Zahid who is also Rural and Regional Development Minister, said allegations that the ministry had overspent by RM2.1 billion arose from comparisons between actual expenditure and the original allocation, without taking into account subsequent approved adjustments. — Bernama pic

First Published: Monday, 26 Oct 2026 6:43 PM MYT

KUALA LUMPUR, Oct 26 — Expenditure under the Rural Roads Programme (JALB) for the 2023–2025 period totalled RM6.108 billion, within the revised allocation of RM6.143 billion, leaving a balance of about RM34.3 million, said Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi.

Ahmad Zahid, who is also Rural and Regional Development Minister, said allegations that the ministry had overspent by RM2.1 billion arose from comparisons between actual expenditure and the original allocation, without taking into account subsequent approved adjustments.

He said the original allocation for JALB during the period was about RM3.982 billion before it was revised to RM6.143 billion.

“We must be clear about what these figures represent. A RM2.1 billion variance from the original allocation is not, in itself, evidence of missing funds, leakages or misappropriation. Such adjustments to allocations also occur in other ministries,” he said.

He was winding up the debate on the Supply Bill 2027 (Budget 2027) at the policy stage for the Ministry of Rural and Regional Development in the Dewan Rakyat today.

Ahmad Zahid said that as of Sept 30, the JALB comprised 415 projects at various stages of implementation, with a total project cost of about RM34.23 billion.

He clarified that the figure represented the total cost of projects implemented over several years, rather than an amount payable in a single year, as payments were made in stages based on work progress and verified claims.

“For 2026, JALB expenditure as of Sept 30 amounted to about RM2.48 billion, against an amended allocation of RM3.02 billion, representing about 82.1 per cent,” he said.

Ahmad Zahid said rural road projects typically took several years to complete, making it important to distinguish the total project cost from the funding required in any given year.

He explained that when work progressed faster than expected or verified claims from previous projects required settlement, annual allocations had to be adjusted to meet payment obligations.

However, he stressed that the need for additional funding did not give the ministry the authority to increase allocations arbitrarily or make payments outside established procedures.

“Any adjustment must go through the ‘Notice of Change’ (NOC) mechanism and involve the reallocation of funds, depending on the nature of the change and the required level of approval,” he said.

He said the process involved the ministry’s Controlling Officer, the Ministry of Economy, the Ministry of Finance and the Accountant General’s Department of Malaysia, each acting within its respective jurisdiction.

All approvals and adjustments were recorded in government systems, including MyProjek and iGFMAS, he added.

Payments, he said, were processed only after funds had been released and made available, based on claims and verification of work by implementing agencies such as the Public Works Department (JKR) and the Department of Irrigation and Drainage (JPS).

“While we may hold differing political views, we must never mislead the public regarding government procurement procedures, nor should we lose sight of the original objective of the JALB programme, which is to provide roads for rural communities.

“I hope today’s clarification allows for a comprehensive assessment of the JALB programme. The original allocation, revised allocation, actual expenditure and contractual commitments must be considered collectively to ensure that any conclusions drawn are based on facts rather than slander,” he said. — Bernama