Budget 2027: Kelantan, Terengganu, Perlis, Kedah, Sabah, Sarawak get RM21.26b development allocation

Economy Minister Akmal Nasrullah Mohd Nasir said development spending is not only aimed at driving economic growth but also at bridging the development gap between states, including those that are lagging behind. — Bernama pic

First Published: Wednesday, 14 Oct 2026 9:32 AM MYT

Last Modified: Wednesday, 14 Oct 2026 9:35 AM MYT

KUALA LUMPUR, Oct 14 — The government has allocated RM21.26 billion in development expenditure to six underdeveloped states under Budget 2027, with the distribution taking into account the different needs of each state, said Economy Minister Akmal Nasrullah Mohd Nasir.

He said the six states are Kelantan, Terengganu, Perlis, Kedah, Sabah and Sarawak, with the allocation also reflecting the commitment to infrastructure development and the implementation of previously announced projects.

“There are states that, in terms of infrastructure development for the period we announced, may require a significant commitment. At the same time, this also involves projects that, although not announced this year, will commence implementation this year,” he told Bernama.

He said this after appearing as a guest on Bernama TV’s Ruang Bicara programme, titled “Budget 2027: Quality Economic Growth, Prosperous People,” last night.

Akmal Nasrullah said development spending is not only aimed at driving economic growth but also at bridging the development gap between states, including those that are lagging behind.

He said the commitment and allocation for the six states, as stated in the 13th Malaysia Plan (13MP), would continue regardless of political differences, in line with the responsibilities of the federal government.

Regarding development spending priorities, Akmal Nasrullah said that, of the total RM83 billion allocated for development under Budget 2027, the focus includes infrastructure development, the creation of economic opportunities and the enhancement of social mobility.

He noted that the development of schools and healthcare facilities, as well as efforts to address the impacts of climate change, are also priorities to ensure that spending delivers high-impact outcomes.

Among the examples given was the commitment to develop a dam in Kelantan to address flooding, as well as steps towards constructing a water treatment plant in Machang.

Earlier in the Ruang Bicara programme, he said the Ministry of Economy evaluates development expenditure based on the desired outcomes to ensure that project implementation achieves the intended objectives.

“Sometimes, for example, when implementing a programme or project, even if the project is completed, it can become a white elephant because the planning may have been driven by certain urgent needs. The project is then carried out, but in terms of achieving the objectives we had intended, it does not get very far,” he said.

He said the risks of delays, such as those involving land acquisition and utility relocation, need to be managed more carefully and comprehensively, but these issues should not be used as excuses.

Akmal Nasrullah said the ministry is now evaluating the implementation of preliminary studies before allowing full project applications to proceed, to avoid situations in which issues such as site incompatibility are identified only after a project has been announced.

“If the construction process takes around three years, but the initial phase of identifying the site and so on takes two years, in my opinion, this means the public have to wait an unreasonable length of time for the infrastructure to become available for their use,” he added. — Bernama