KUALA LUMPUR: Rural basic infrastructure, including roads, water and electricity supply, as well as bridges, received a RM3.3bil allocation nationwide as the government seeks to narrow regional development gaps and ensure equitable access to essential utilities.
According to the Economic Outlook 2027 released by the Finance Ministry on Friday (Oct 9), RM22.8mil of the total allocation was set aside for water supply projects, while RM70mil was allocated for electricity supply projects in Sabah and Sarawak.
To enhance the resilience of the water sector, RM2.5bil was allocated under Budget 2026 for the non-revenue water (NRW) reduction programme.
"Of this amount, RM824mil was earmarked for management, prevention, detection and rectification works in Kelantan, Labuan, Pahang, Perlis, Sabah and Sarawak. Additionally, RM1.7bil was provided for the replacement of critical pipes nationwide," the report said.
During the same period, Pengurusan Aset Air Bhd (PAAB) allocated RM13bil to upgrade water infrastructure, benefiting 1.5 million consumers across Selangor, Kuala Lumpur and Putrajaya.
A RM5mil hybrid seawater desalination initiative was also introduced for security posts in the Eastern Sabah Security Zone (Esszone) and remote islands in Sabah, including Pulau Banggi, Pulau Mabul and Pulau Berhala.
In expanding digital infrastructure, Phase 2 of the Point of Presence project, which aims to extend fibre-optic connectivity to areas near industrial parks and rural schools, achieved 95% progress as of July 2026, with expenditure exceeding RM497mil.
Meanwhile, the bumiputra economic empowerment agenda continues to be bolstered through a RM6bil allocation via Majlis Amanah Rakyat (Mara), Yayasan Peneraju and Universiti Teknologi Mara (UiTM), alongside RM10bil in financing guarantees under Syarikat Jaminan Pembiayaan Perniagaan Bhd and RM2.4bil for G1 to G4 bumiputra contractors.
Nine high-performing bumiputra companies have also been shortlisted under the Bumiputra 10 Champions Programme as they prepare for initial public offerings, each with a target market value of RM500mil.
To empower young entrepreneurs, SME Corp Malaysia's Tunas Usahawan Belia Bumiputera Skala (Tube-S) programme benefited 486 youth entrepreneurs with matching grants totalling RM7.3mil as of August 2026, while the Tunas-i scheme approved RM2.7mil in soft loans to 50 micro, small and medium enterprises.
On social mobility for vulnerable groups, RM5mil was disbursed between January and August 2026 under the Mekar Dinamik Programme, assisting more than 1,680 women, including former prison inmates and clients of the Narcotics Addiction Rehabilitation Centre (Puspen).
Meanwhile, RM155mil was allocated for the Orang Asli community through the Orang Asli Development Department (Jakoa), while more than RM1.2bil in direct aid was provided for the welfare of persons with disabilities (OKU).
Of the allocation, RM9.6mil was set aside for Autism Service Centres (PPA) in Labuan, Sabah and Sarawak, which provided access to therapy and support services for 5,500 children as of August 2026.
The implementation of Budget 2026 also continues to strengthen governance and institutional capacity through measures focusing on fiscal responsibility, public financial management and improvements in public service delivery.
On the digitalisation of tax administration, the e-Invoicing initiative recorded more than 265,000 taxpayers with over 1.8bil e-Invoices issued as of August 2026.
Public sector digital transformation was also accelerated through the MyGOV Malaysia platform, which now has more than threemil users and provides access to 63 services across 25 government agencies and 91 local authorities.
To strengthen institutional effectiveness and participatory governance, RM20mil was allocated to reinforce Parliamentary Special Select Committees and support community development programmes under the All-Party Parliamentary Group Malaysia (APPGM). – Bernama
