Road maintenance cuts threatened for Malaysia

Highway managers in Malaysia face having their road maintenance funding slashed if they do not spend their current budgets. In a surprise announcement this week, the Malaysian government warned that states which “fail to manage and utilise funds allocated for road maintenance from the Federal Government risk having their provisions reduced in the future.”
August 6, 2012 Read time: 2 mins

Highway managers in Malaysia face having their road maintenance funding slashed if they do not spend their current budgets. In a surprise announcement this week, the 3491 Malaysian Government warned that states which “fail to manage and utilise funds allocated for road maintenance from the Federal Government risk having their provisions reduced in the future.”

Prime minister Datuk Seri Najib Abdul Razak is worried that a huge surge in road maintenance funding is not being properly invested. Currently, he said, US$ 828.2 million (RM2,591.3 million) is being allocated by the Malaysian government for road maintenance, compared with US$347.6 million (RM1,087.5 million) six years ago.

“This is an increase of 138%” since 2006, says the prime minister. “On average, the allocation has been increased by 27.6% per annum. However, we find that most of the states have not fully spent the allocation given to them so this situation must be addressed.”

Najib has announced that a “lab” review to develop “comprehensive guidelines on highway management procedures and the proper use of the country’s state road maintenance grant” will take place in October 2012.

“The lab sessions will come up with guidelines to address the issues at hand, and after that, any state that fails to manage this provision well enough may face reduction in the grant (in the future),” the prime minister told reporters after chairing the Malaysian National Finance Council Meeting 2012 this week.

He said the lab reviews will also be asked to “identify the reasons why some states have not fully utilised the grants allocated to them.” The review will report before the end of this year. Prime minister Najib also said that the Malaysian National Finance Council also took note of the auditor-general’s report on the State Road Maintenance Trust Account (Kumpulan Wang Amanah Penyelenggaraan Jalan Raya Negeri) and the Malaysian Road Record Information System (Marris). He said that he is concerned about a report from the country’s Ministry of Finance that has identified “matters which need to be addressed concerning the safety and comfort of road users.”

For more information on companies in this article

Related Content

  • Saving lives, funding roads the focus of IRF – RA Regional Conference in Sydney in May
    April 8, 2015
    Road safety, funding and financing will be among the key issues on the table at the inaugural IRF - Roads Australia Regional Conference for Asia and Australasia, to be held in Sydney from May 4th - 6th, 2015. The Conference coincides with UN Global Road Safety Week, with safer roads, worksites and driver behaviour being a central focus of discussions. Speakers from across the Asia Pacific are expected to share learnings and experiences in tackling regional road safety and the challenges and opportunities fo
    Read More
  • Germany to cut red tape for bridge construction up to 2027
    October 5, 2017
    The German federal government has set aside €4.5 billion for refurbishment of 400 bridges in the state of North Rhine-Westphalia up to 2027. Hendrik Wüst, North Rhine-Westphalia transport minister, made the announcement which included around €200 million for road maintenance. The Federal German government also plans to fast-track planning for infrastructure projects. Bonuses to contractors for improved performance to reduce down-time on construction sites as well as the possibily of a six-day working
    Read More
  • Make the case for electronic tolling, ASECAP conference delegates heard
    September 14, 2015
    Mobility pricing and electronic tolling is the future, delegates to a recent ASECAP Study Days conference, reports Geoff Hadwick at the Lisbon event. The international road tolling industry is failing to make its case and the sector is losing out to other social and political lobby groups. As a result, “tolling is still on the sidelines”, according to the head of the Washington-based International Bridge, Tunnel and Turnpike Association. IBTTA chief executive Pat Jones issued his stark warning at the
    Read More
  • Norway agrees funding for road repairs
    June 29, 2023
    Construction and civil engineering association EBA says the allocated €103 million will go a long way to shoring up road maintenance requirements on national roads.
    Read More

Highlighted Content