KUALA LUMPUR (Oct 18): The government is prioritising future development efforts on essential infrastructure that benefit the people and support industrial developments, rather than mega projects.

“Now is not the time to implement mega projects,” said Prime Minister Datuk Seri Anwar Ibrahim when tabling Budget 2025. “The country’s development will focus on projects that benefit the people and infrastructure that supports industrial areas based on state priorities,” he added.  

Anwar also said development projects will be implemented with consideration of the 'user pays' principle to alleviate the government's fiscal burden.  

In rolling out the ‘user pays’ principle of infrastructure development, the government has rolled out the Public-Private Partnership (PPP) Master Plan (PIKAS).

PIKAS outlines a robust direction for strengthening the strategic relationship between public and private sectors. The master plan aims to increase private investment by RM78 billion and generate 900,000 job opportunities by 2030.

Projects developed based on the 'user pays' format via the PPP approach include the West Ipoh Span Expressway (WISE) Highway from Gopeng to Kuala Kangsar as well as the West Coast Expressway (WCE) Highway from Banting to Gelang Patah.

Anwar also announced RM5.9 billion development allocation for Sarawak under Budget 2025, while Sabah will get RM6.7 billion.

In total, both Sabah and Sarawak received a combined development budget of RM12.6 billion, representing an increase of RM200 million from the RM12.4 billion allocated to the two states in Budget 2024.

“The Madani government is fulfilling the commitments made by previous leaders regarding the Malaysia Agreement 1963. Therefore, it should not be questioned why Sabah and Sarawak are given special attention.

“The development gap between states needs to be narrowed, particularly concerning basic infrastructure such as roads, electricity, and clean water,” Anwar said.  

The government has finalised four work packages under Phase 2 Sabah-Sarawak Link Road (SSLR) worth RM7.4 billion, with two packages having been awarded, with the remaining packages to be awarded before the end of the year.

An estimated RM253 million is allocated for the expansion of Tawau Airport in Sabah and Miri Airport in Sarawak and RM1 billion for the Sarawak Cancer Centre.

Apart from these, the government has also focused on necessary infrastructure in clean water, electricity, roads and schools.

To bridge the urban-rural development gap, basic infrastructure in villages, rural areas and remote regions will continue to be prioritised with an allocation of RM2.9 billion for the development and upgrading of basic infrastructure.

Of this total, RM1.8 billion is allocated to construct and upgrade village connection roads, including in Kota Belud, Sabah, Pasir Puteh, Kelantan and Kuala Lipis in Pahang.

More than RM350 million is to build and repair bridges, install and maintain village streetlights, while another RM500 million is allocated for the provision of clean water and electricity to 5,150 homes in Sabah and Sarawak.

The federal government allocates more than RM250 million to repair dangerous slopes across the country, RM21 million to curb sinkholes in Perak, Kedah and Perlis, and RM10 million to carry out geotechnical study of the structure of the soil in the main roads around Kuala Lumpur's Golden Triangle.

The government also allocated RM2.8 billion for the maintenance of federal roads and provided Malaysia Road Record Information System (MARRIS) funds of RM5.5 billion for state roads.

Anwar also announced an allocation of RM2 billion to upgrade and maintain schools nationwide.

For healthcare, RM1.35 billion is allocated for the maintenance of health infrastructure, including the repair of dilapidated hospital toilets and outdated patient wards.

The government will also continue to upgrade clinics nationwide, said Anwar. Under the Madani initiative, the allocation for this purpose will increase annually, from RM100 million for 2023, RM150 million for 2024, and RM300 million for 2025.

Nonetheless, the highly anticipated mega infrastructure like Mass Rapid Transit Line 3 (MRT 3) and Kuala Lumpur-Singapore high-speed rail were not mentioned in the Budget 2025 announcement.

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