Zahid's ministry to get RM500m from other ministries' savings to cover overspending

Published: Oct 20, 2026 11:36 AM

The Finance Ministry said it had given the Rural and Regional Ministry an additional RM500 million to top up its RM2.1 billion budget allocation and cover this year's overspending.

It said the money came from savings other ministries achieved in their development budget.

On top of that, it is also giving...

The Finance Ministry said it had given the Rural and Regional Ministry an additional RM500 million to top up its RM2.1 billion budget allocation and cover this year's overspending.

It said the money came from savings other ministries achieved in their development budget.

On top of that, it is also giving the ministry - which is overseen by Deputy Prime Minister Ahmad Zahid Hamidi - a bigger 2027 budget allocation of RM2.27 billion.

This was revealed in response to a query by Lim Guan Eng (Harapan-Bagan) on what action is being taken to hold the Rural and Regional Ministry accountable for bursting its budget.

In a written reply yesterday, the Finance Ministry indicated that it didn't just throw money at the problem, which stemmed from rural road projects.

View of Ministry of Finance building MoF Building #MOF #FINANCE #ECONOMY #BUDGET2021 #BELANJAWAN 041120 Kementerian Kewangan Malaysia hq office generic

Instead, it instructed the ministry on Sept 10 to postpone issuing new letters of acceptance for rural roads so it won't add to the payment backlogs that the ministry is suffering.

Additionally, it tasked the ministry with preparing projections for rural roads for the rest of 2026 and 2027 based on awarded contracts to determine the required allocation.

Last month, Zahid complained that many contractors are left without payments after completing projects and achieving milestones. Some have been forced out of business by the resultant cash flow issues. He urged the Finance Ministry to expedite payments.

In response, Treasury secretary-general Johan Mahmood Merican said no sanctions were imposed on the Rural and Regional Development Ministry’s allocation for rural roads, which has already been fully disbursed.

He also painted the Rural and Regional Development Ministry as consistently going over budget, and said the Finance Ministry is working to identify cost savings in other ministries to support the Rural and Regional Development Ministry’s excesses.

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To cover for overspending ie leakages. The defacto Oomno presiden.

Truly Malaysian12:22 PM, 20 Oct 2026

Question: What action is being taken to hold the Rural and Regional Ministry accountable for bursting its budget? Excellent answers: 1) The Finance Ministry has given the Rural and Regional Ministry an additional RM500 million to top up its RM2.1 billion budget allocation and cover this year's overspending. 2) On top of that, the Finance Ministry is also giving the ministry - which is overseen by Deputy Prime Minister Ahmad Zahid Hamidi - a bigger 2027 budget allocation of RM2.27 billion. If Zahid's ministry EXCEEDS the 2027 budget allocation, the Finance Ministry will repeat the two actions above because Malaysian taxpayers are generous and helpless. This is called the MADani Administration way of 'punishing' Zahid Hamidi. Manyak Cantik! Terus berusaha to the Finance Minister!

apanama is back12:22 PM, 20 Oct 2026

This also can ah.

Wong Fei Hoong12:06 PM, 20 Oct 2026

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To cover for overspending ie leakages. The defacto Oomno presiden.

Truly Malaysian12:22 PM, 20 Oct 2026

apanama is back12:22 PM, 20 Oct 2026

This also can ah.

Wong Fei Hoong12:06 PM, 20 Oct 2026

DAP shouted at the top of its voice and call for MACC investigation but still the pm gave more to ZH. Thats why it is made to look like Umno is calling the shots.

CareOneCareAll11:54 AM, 20 Oct 2026

We are witnessing the return of the good old UMNO political patronage system, now ring fenced within the Madani government. Unknown contractors get projects, don't care about budget allocation, and taxpayers are expected to pick up the bill. How does one overspend by a staggering RM2.1 billion, attract an MACC report from within the ruling coalition, and still get rewarded with another RM500 million taken from ministries that managed their finances responsibly? Anwar spent decades preaching reform. Today, he appears to be feeding the very beast he promised to slay. The faces may have changed, but the machinery remains. Reformasi has become Reformati, for sure.

OceanMasterII11:53 AM, 20 Oct 2026

Kudos to MADANI for putting the needs of the people first. Contractors who have completed their work deserve to be paid, and rural communities should not suffer because a ministry failed to manage its budget. But the RM500 million comes from savings by other ministries. The ministry must explain why it repeatedly exceeds its allocation and what it will do to prevent this happening again. MOF is right to pause new road awards while existing commitments are sorted out. Helping people and demanding accountability must go together.

Kopi Kurang Manis11:51 AM, 20 Oct 2026

That's not only rewarding bad behaviour, but also penalising good behaviour. So take it out from budget for work planned for the rural folks. Not to penalize them but why should urban folks fork out for them from their own allocation?

Coward11:46 AM, 20 Oct 2026

So the rule breaker get incentive

Logic Ah11:41 AM, 20 Oct 2026