By Karen Bong
KUCHING, Oct 9: Road projects in Sabah and Sarawak will continue to receive funding, with RM3.3 billion allocated under Budget 2027 to sustain highway development and improve connectivity across both states.
Prime Minister Datuk Seri Anwar Ibrahim, who is also Finance Minister, said the allocation would support ongoing road projects, including the Trans-Borneo Highway, Sarawak-Sabah Link Road 1 and Pan Borneo Highway Sabah Phase 1B.
Tabling Budget 2027 in the Dewan Rakyat today, Anwar said the Letter of Acceptance (SST) for the Miri section of the Trans-Borneo Highway had been issued, while those for the Limbang and Lawas sections were expected to be issued by the end of this year.
“Sarawak-Sabah Link Road 1 and Pan Borneo Highway Sabah Phase 1B are targeted for completion by the end of 2027,” he said.
The government has also set aside RM350 million in federal road maintenance funding specifically for G1 to G4 contractors in Sabah and Sarawak.
Meanwhile, Anwar said the government will increase the value of government procurement reserved for Bumiputera contractors in grades G1 to G4 to RM7.5 billion, from RM4 billion this year.
“For maintenance, repair and upgrading works involving government facilities, the procurement ceiling for direct appointments will be raised to RM200,000, while the limit for quotation-based procurement will be increased to RM3 million,” he said.
Anwar said the measures followed engagement sessions with representatives of Bumiputera contractor associations and companies to better understand the challenges facing their businesses.
He also announced that TERAJU would provide financing of up to RM1 billion to support Bumiputera enterprises.
“Its capacity would be strengthened to improve monitoring of Bumiputera projects across government departments, agencies and companies,” he said.
To help construction contractors cope with rising operating costs, the government has agreed to reintroduce the Variation of Price (VOP) clause specifically to cover increases in diesel and bitumen costs.
“The government will also expedite the implementation of public-interest projects, including the construction of government quarters, schools, hostels, clinics and halls.
“Projects valued at up to RM5 million with pre-approved plans from the Public Works Department (JKR) may be offered through the quotation method to speed up implementation,” Anwar added.
Separately, the allocation for rural road projects will be increased to RM2.3 billion, compared with RM1.3 billion in 2022.
A total of RM3.3 billion will also be allocated for basic rural infrastructure, covering initiatives such as village street lighting, community facilities, clean water supply and electricity provision. — DayakDaily
