Budget Revision: RM8.9bil for flood recovery efforts

Students and teachers cleaning up their school in Kuala Krai.

PETALING JAYA: The Government has allocated over RM8.9bil for the east coast’s flood recovery efforts as part of the 2015 Budget revision, according to Prime Minister Datuk Seri Najib Tun Razak.

"The Government has channelled RM500mil as an initial allocation for repair and restoration works, welfare programmes for flood victims as well as an increase to the National Security Council's funds. The total allocation will come up to RM787mil," said Najib in his Budget 2015 revision speech on Tuesday.

He added that the Government has allocated RM800mil to repair and rebuild basic infrastructure damaged by the flood, such as schools, hospitals, roads and bridges.

"The Government has also allocated RM893mil in Budget 2015 for flood abatement efforts, and will also rebuild stilt houses in kampungs that have been destroyed," said Najib.

He also said the Government would provide 1,000 low-cost homes in Gua Musang, Kelantan to victims and give RM500 in assistance funds to every family as well as RM5,000 to every individual who lost a family member in the floods.

"We will give priority to local Class G1 (Class F), G2 (Class E) and G3 (Class D) contractors registered with the Construction Industry Development Board to carry out recovery works in their local areas affected by the east coast flood," said Najib.

The Prime Minister is adjusting Budget 2015, with both proactive and pre-emptive measures, in bid to ensure sustainable development and the resilience of the economy.

His announcement at a special function, Tuesday, focuses on actions and policy interventions to handle the changing economic scenario caused by the oil price slump.

When Najib, who is also Finance Minister, tabled Budget 2015 last year with an expected expenditure of RM273.9bil against an expected revenue of RM235.2bil, oil price averaged around US$90 (RM355) per barrel.

But the price has been falling and is expected to drop to as low as US$40 (RM140) in the first six months of this year.

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