Putrajaya denies sidelining poorest states

 Economy minister Akmal Nasir says SG4 states were given RM7.7 billion in development expenditure in 2025, while RM31 billion worth of projects have been earmarked for Kelantan.

Economy minister Akmal Nasir said comments suggesting the federal government was trying to sideline some states were baseless. (Bernama pic)

KUALA LUMPUR:

The economy ministry says Putrajaya has never sidelined least developed states when it comes to federal development expenditure, adding that it has allocated more funds to complement similar funds given by the respective state governments.

Economy minister Akmal Nasir said the four opposition-led states (also known as SG4) – Kedah, Kelantan, Terengganu and Perlis – have received RM7.7 billion in federal development expenditure for 2025 to complement the RM1.13 billion allocated by the state governments.

“We see the need to close the development gaps (among states). Therefore, comments which say that the federal government is trying to sideline (some states) are baseless,” said Akmal while winding up the debate on the 2027 budget for his ministry in the Dewan Rakyat.

“The federal government does not see that any state needs to be sidelined when we talk about boosting the states’ economies. Therefore, I hope that the (MPs) on the other side will be fairer in making statements.”

Akmal was responding to Syahir Sulaiman (PN-Bachok), who said the development expenditure allocated to the six least developed states – which include the four opposition-led states – for next year is RM21 billion. He said that amount comprises only 37% instead of 50% of the basic development expenditure that should be earmarked for these states.

Syahir said SG4 states only received a total of RM7.7 billion in development expenditure, compared with Penang which received 280 federal development projects worth RM33.22 billion under the Rolling Plan 2 of the 13th Malaysia Plan for 2027.

“Least developed states need more attention. The 50% basic development expenditure needs to be maintained for the six states – SG4 plus Sabah and Sarawak – in the coming Rolling Plans,” said the PAS MP.

Akmal clarified that the value of projects received by Penang is actually the total cost of the 280 allocated projects. Kelantan, meanwhile, will receive 509 projects next year, valued at RM31.2 billion, he said.

The minister also said Putrajaya allocated a similar sum for infrastructural development for both developed and least developed states.

Akmal also noted that developed states usually have the financial means to create new industrial areas.

However, when it comes to industrial areas in least developed states such as the Tok Bali Industrial Park in Pasir Puteh, Kelantan, and Kulim Hi-Tech Park (KHTP) in Kedah, Putrajaya allocates funds for land acquisition.

Additionally, the federal government has also allocated RM922 million for the Jeniang Water Transfer Scheme, RM613.8 million for the Kedah Rubber City project in Padang Terap and RM1.1 billion for KHTP – all in Kedah. - FMT