Minister insists no acceptance letters cancelled for East M'sia rural road projects, MPs pushback

PARLIAMENT | Finance Minister II Amir Hamzah Azizan today doubled down on his assertion that no letters of acceptance issued for rural road projects in Sabah and Sarawak have been cancelled, despite continued objections from Sabah MPs.

Amir (above), who first made the assertion during his policy stage winding-up speech on Oct 30, maintained that the Finance Ministry and Rural and Regional Development Ministry had only deferred tender exercises and the issuance of new letters to address excessive financial commitments and outstanding payments to contractors.

"The fact is that no issued acceptance letters have been cancelled. We have also explained that all projects on the approved list will be implemented.

"The only difference is that the projects have been deferred," he told the Dewan Rakyat during his winding-up speech at the committee stage of Budget 2027 today.

The minister's remarks followed renewed scrutiny of the rural road funding dispute during committee-stage debates yesterday and today.

READ MORE: 'Postponed indefinitely' means cancelled, right? Zahid's aide quizzes MOF over rural road projects

Earlier today, Isnaraissah Munirah Majilis (Warisan-Kota Belud) questioned why no action had been taken against officials in the Finance and Rural and Regional Development Ministries over financial management problems dating back to 2023.

Yesterday, Willie Mongin (GPS-Puncak Borneo) similarly challenged the government's explanation, claiming some contractors in his constituency had received cancellation letters despite assurances that the projects were merely deferred.

Madius takes on Amir

Meanwhile, Madius Tangau (Upko-Tuaran) interrupted Amir to challenge his explanation, pointing out that Deputy Prime Minister Ahmad Zahid Hamidi, who helms the Rural and Regional Development Ministry, had announced the cancellations himself.

"The question people are asking is that it was the deputy prime minister who announced the cancellations.

"I have also personally seen cancellation letters. In my constituency, several projects have been cancelled," he claimed.

On Oct 26, Zahid, during his ministry’s winding-up speech at the policy stage debates, said, “There are projects for 2026 that have been ordered by the ministry’s secretary-general for cancellation, despite allocations set aside, but there was no channelling of the allocations.

“The ones victimised are Sabah and Sarawak. Along with other rural communities in the peninsula. So that should not have happened.

“Including acceptance letters that had been issued, also cancelled. This is the fact. That is the problem,” said Zahid, according to the official Hansard.

Zahid also reportedly repeated his statement today, saying he is willing to produce evidence in the form of an official letter instructing the project cancellations.

‘Verbal assurances not enough’

Citing Zahid’s statement, Madius argued that Amir's verbal assurances were insufficient unless the government formally withdrew the cancellation notices.

"Your explanation cannot resolve this as long as the cancellations are not withdrawn.

"Merely providing a verbal explanation like this is not enough. The administration must follow through to confirm that these projects are still proceeding," he added.

Responding, Amir reiterated that projects approved under the Malaysia Plans remained valid in principle, although their implementation would depend on available funding.

He acknowledged, however, that some tender exercises that had not yet reached the acceptance letter stage might not proceed.

"The projects have not been cancelled. There may be some differences, where certain tenders are already underway but acceptance letters have not been issued. Those tenders may not proceed," he said.

Kurniawan Moktar (BN-Kinabatangan) then pressed Amir to specify how long the affected projects would be deferred.

"Deferred for how many years? Ten years, 15 years? How many years will these projects be deferred?" he asked.

Amir did not provide a specific timeline, instead explaining that ministries must manage their projects within expenditure ceilings approved by Parliament.

He pointed to approximately RM3 billion in allocations for rural roads under Budget 2027.

Manndzri Nasib (BN-Tenggara) further challenged the issue, citing guidelines under the 13th Malaysia Plan that stipulate a two-year validity period for approved projects.

He questioned whether projects deferred beyond that period would effectively be considered cancelled.

Amir replied that projects listed under the 12th and 13th Malaysia Plans remained approved in principle, but their implementation could proceed only when sufficient funding was available.

Financial commitments under scrutiny

Earlier in his speech, Amir rejected claims that the government had abandoned rural road development in Sabah and Sarawak.

He said spending and allocations for rural roads under the Madani administration totalled RM11 billion, compared with RM3.72 billion over the preceding five-year period.

Amir also maintained that funding for rural road projects in both states had increased annually and had never been blocked by the Finance Ministry.

However, he acknowledged that increased commitments for ongoing projects had pushed expenditure requirements beyond the original allocations approved by Parliament, requiring internal reallocations and additional funding.

Chong Zhemin (Harapan-Kampar) subsequently questioned whether commitments made before sufficient allocations were approved complied with government financial procedures.

He also pressed Amir on whether all outstanding payments could be settled this year.

Amir responded by saying Finance and Rural and Regional Development Ministry Ministries were working together to reduce arrears through existing allocations and possible internal reallocations, but ruled out using next year's budget before Parliament approved it.

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