KUALA LUMPUR: Prime Minister Datuk Seri Anwar Ibrahim rejected claims that the government is overspending on major infrastructure projects, saying critics ignore the wider benefits of federal investments reaching multiple states, including Terengganu.
He was responding in the Dewan Rakyat to Datuk Rosol Wahid (PN-Hulu Terengganu), who questioned the rising cost of the Penang Light Rail Transit (LRT) from RM10bil in 2023 to RM13bil and later RM17bil.
Rosol argued that the funds could have been used for more pressing needs.
"With RM17bil, we could build around 340 schools nationwide," he said on Tuesday (Dec 2), asking why the government continued to allocate large sums to projects he considered "non-essential" instead of prioritising initiatives such as the proposed LRT extension from Terengganu to Kelantan.
Anwar said the criticism overlooked the scale and significance of other national infrastructure projects.
"The facts are being distorted. Why not mention that the ECRL costs RM45bil and benefits many states, including Terengganu?
"We (the unity government) never questioned it because the project was already underway.
"What we did was reduce the cost and ensure more subcontracting went to local firms," Anwar, who is also Finance Minister, said during Minister’s Question Time.
He added that Penang had not received any large-scale federal development project in the past five years, and that the LRT’s financing had been misrepresented.
"This is not entirely development expenditure. Part of it is development, and part is funded through bonds, which must be repaid," he said.
On the increased cost, Anwar explained that the project was intended to serve more than just the island.
"From the start, I said that if the LRT proceeds, it should not be limited to the island.
"Look at Seberang Prai – the majority there are Malays. Development must be broader, benefiting Seberang Prai, Kedah, Perlis and Perak.
"That cross-channel extension is why the cost went up, and I take responsibility for that," he added.
He also addressed criticism of the Kota Madani development.
"Kota Madani is a Perbadanan Putrajaya project, not funded by the Federal Government," he said.
"And why be angry with civil servants? Kota Madani is meant to provide 10,000 homes and offices for public officers. This is not a mega city or twin-tower project, it’s a township," he added.
Anwar said the project was necessary because Putrajaya lacked adequate housing for government staff.
"It has to be a smart, comfortable and well-planned community. What’s wrong with that?" he asked.
"I’d like to see the Hulu Terengganu MP go to Putrajaya and tell civil servants he does not support proper housing for them," he added.
Rosol later clarified that his concern was not with civil servants but with government spending.
Anwar responded briefly: "I’ve answered this. Hulu Terengganu doesn’t listen. Kota Madani provides quarters for 10,000 civil servants – that is its purpose, to address their housing needs."
