KUALA LUMPUR, Oct 12 — The RM95 billion development expenditure allocated under Budget 2023 is not just for contractors or the rich as claimed by some parties, said the Ministry of Finance (MoF).
The MoF reiterated that the allocation is for various infrastructure development projects as well as national connectivity that will benefit millions of people, various small and medium enterprises (SMEs) in the main contractor vendor system, as well as various economic sectors from various layers of “Keluarga Malaysia”.
For example, the ministry explained that in Budget 2023, RM16.5 billion was allocated for the implementation of major infrastructure projects such as the Pan Borneo Highway, the Gemas–Johor Baru Electrified Double-Tracking Project, the East Coast Rail Link (ECRL), the Johor Baru-Singapore Rapid Transit System Link (RTS Link) and Central Spine Road (Transportation Sector).
“RTS will create 1,500 job opportunities and the service is expected to be used by 40,000 passengers a day,” MoF said in a statement today in response to a number of issues raised regarding Budget 2023.
About the ECRL, the MoF said the project is estimated to create more than 88,000 job opportunities, and every RM1 spent will generate an estimated economic impact of RM2.80 or 280 per cent compared to investment.
“It will also benefit almost 39 per cent of Malaysians who live in Kelantan, Terengganu, Pahang, Negri Sembilan and Selangor,” MoF said.
Regarding the allocation of RM11.7 billion for Sabah and Sarawak for the implementation of water, electricity, road, health and education infrastructure projects, the MoF said it was aimed at improving the quality of life of the 5.86 million people of Sabah and Sarawak, especially rural people, and that the allocation would be used for restoring and upgrading dilapidated schools and rural roads.
Regarding the allocation of RM11.4 billion for the repair and maintenance of assets, including federal roads and government buildings, he said the allocation will benefit 32 million Malaysians and in ensuring public facilities are in good and safe condition.
MoF said the allocation of RM3.3 billion for Mass Rapid Transit Line 3 (MRT3) (Kuala Lumpur’s rail network with a length of 50.8 kilometres) is expected to create 600,000 jobs, and MRT3 completes Kuala Lumpur’s rail network for the convenience of citizens using public transport.
The ministry said the allocation of RM2.55 billion for infrastructure facilities for rural and inland people is expected to benefit 110,000 residents, including Orang Asli villagers, provide rural electricity supply for 2,100 houses/6,300 residents, and provide water supply and alternative water supply for 4,800 houses/14,400 residents in rural areas.
The allocation will also be used to install 6,800 new lighting units on village roads and for maintenance costs, as well as build 85 new bridges to replace dilapidated and unsafe bridges, the MoF noted.
As for the allocation of RM1.4 billion for the country’s five main economic corridor regions, the MoF said among the projects that will be implemented include the Dairy Farm Project (Perlis), the Rapid Transit Bus Transport System in Johor, and the Human Capital Development Programme under the East Coast Economic Region Development Council (ECERDC) to improve the academic performance of B40 children.
It said an allocation of RM3.7 billion for small and medium projects is estimated to benefit 5,000 Class G1-G4 contractors (small grade contractors), while the RM700 million allocation for Phase 2 of the National Digital Network Plan (Jendela) will benefit 47 industrial areas and almost 3,700 schools.
“It is clear that the biggest beneficiaries of the above development projects are the people and various sizes of businesses and SMEs,” the ministry said. — Bernama
