MCA president Wee Ka Siong is demanding the federal government provide a detailed list of rural road allocations and actual expenditures to explain project delays and unpaid contractors. The request follows conflicting reports within the government regarding whether rural development projects in Sabah and Sarawak were cancelled or merely deferred.
Wee stated that the government must disclose the percentage of completion for these projects and the amount of outstanding payments. He argued that citing large allocation sums does not explain why contractors remain unpaid or why villagers are still waiting for road construction to begin.
Conflicting claims over project cancellations
The dispute centers on whether the Rural and Regional Development Ministry halted projects entirely or paused new contracts. Deputy Prime Minister Ahmad Zahid Hamidi told the Dewan Rakyat that projects in Sabah and Sarawak were cancelled by the ministry’s secretary-general, despite funds being available.
Conversely, Tengku Zafrul Aziz, a senior political advisor to the prime minister, told Bernama that the Finance Ministry never ordered cancellations. He stated that only the issuance of new contracts was deferred to prevent outstanding payments to contractors from accumulating further.
Sabah and Sarawak affairs minister Mustapha Sakmud supported this view, stating projects were put on hold rather than cancelled to avoid increasing arrears.
Billions in deferred and cancelled tenders
The scale of the affected works is a point of significant contention. Fadzmel claimed that tender processes for 40 rural road projects worth RM5.14 billion were cancelled. He further alleged that 87 other projects, valued at RM8.10 billion, faced delays in receiving acceptance letters.
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This total of 127 affected projects, worth RM13.24 billion, includes critical infrastructure in East Malaysia. Fadzmel argued that a September 10 directive putting funding on hold without a release date effectively constitutes a cancellation.
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Tengku Zafrul reported that actual rural road expenditure in Sabah and Sarawak this year reached RM1.41 billion, the highest in the past 10 years.
Government diverts funds to cover rural road costs
The government has acknowledged a gap between commitments and available funds. Finance Minister II Amir Hamzah Azizan told the Dewan Rakyat that the ministry diverted funds from other agencies and programs to cover rural road costs because commitments exceeded approved amounts since 2023.
Tengku Zafrul provided the following allocation comparisons for rural road projects:
| Period | Allocated Amount |
|---|---|
| 2018 – 2022 | RM3.7 billion |
| 2023 – 2027 | RM11 billion |
To address the backlog, Tengku Zafrul stated that Prime Minister Anwar Ibrahim approved an additional RM500 million this year from other ministries’ savings to settle contractor debts. Budget 2027 has also allocated RM2.27 billion for rural roads.
Political reactions in Sabah and Melaka
In Sabah, Upko Kimanis division chief Rowindy Lawrence Odong called for clarity on who ordered the cancellations and whether projects will be reinstated or retendered. She noted that rural communities rely on these roads for access to healthcare and schools. She backed a proposal by Penampang MP Datuk Ewon Benedick to establish a Special Budget Implementation Monitoring Committee in each state.
In Melaka, the dispute has triggered party friction. PKR deputy secretary-general Saifuddin Shafi Muhammad urged Umno not to mislead the public, stating that deferring a Letter of Acceptance is not the same as a wholesale cancellation. Saifuddin Shafi also noted the Ministry of Finance suspended approvals for the Selected Pre-Qualified Open Tender (TTPKT) method following Auditor-General’s Report findings on procurement governance.
Rural road project status FAQ
Why are some rural road contractors not being paid?
Finance Minister II Amir Hamzah Azizan stated that the government made spending commitments for rural roads that exceeded the approved amounts since 2023, leading to a shortage of funds for payments.
What is the difference between “deferred” and “cancelled” in this context?
The Finance Ministry argues that deferring new contracts prevents arrears from piling up while existing projects continue. However, critics like Fadzmel argue that postponing a project without a specific date is effectively a cancellation.
How much has been spent on roads in Sabah and Sarawak recently?
Tengku Zafrul stated that RM4.6 billion has been spent since 2023, with this year’s expenditure reaching RM1.41 billion.
“Postponed until when?” Fadzmel asked in a Facebook post regarding the funding hold. “’Postponed without a date’ effectively means ‘cancelled’.”
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