Zahid rejects RM2.1b overspending claims, says ministry underspent revised allocation

Rural and Regional Development Minister Datuk Seri Ahmad Zahid Hamidi today dismissed claims that his ministry overspent by RM2.1 billion. — Bernama pic

By Malay Mail

First Published: Monday, 26 Oct 2026 5:31 PM MYT

KUALA LUMPUR, Oct 26 — Rural and Regional Development Minister Datuk Seri Ahmad Zahid Hamidi today dismissed claims that his ministry overspent by RM2.1 billion, saying the figure reflected the difference between its original allocation and revised spending ceiling over three years.

Winding up the 2027 Budget debate in the Dewan Rakyat, Zahid said the ministry spent RM6.108 billion between 2023 and 2025, against a revised allocation of RM6.143 billion after additional funding was approved, Free Malaysia Today reported.

“When we compare the amended allocations, the ministry has in fact underspent,” he was quoted as saying.

The explanation follows calls by DAP Bagan MP Lim Guan Eng last month for the Malaysian Anti-Corruption Commission to investigate what he described as excess spending by the ministry.

The issue drew attention after Zahid voiced concern over delays in payments to contractors involved in ministry projects, saying some had been forced to cease operations because of cash flow problems despite completing their work.

Treasury secretary-general Johan Mahmood Merican later attributed the delays to the ministry's spending commitments, noting that most of this year's allocation for rural road projects had already been utilised.

According to Johan, spending on rural road projects reached RM1.8 billion in 2023 against an approved allocation of RM1.1 billion, RM2 billion in 2024 compared with RM1.3 billion allocated, and RM2.3 billion in 2025 against RM1.6 billion approved.