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

  • Kazakhstan’s London road show woos consortia for Almaty ring road
    March 2, 2015
    Kazak and EBRD officials visited London to highlight the possibility of a public-private partnership under the country’s revised PPP legal framework. David Arminas reports. To build a road, you go on the road, and that is what Kazakhstan did in London in mid-December. Representatives of more than 100 organisations, a mix of construction companies and financial institutions, attended the roadshow-style presentation to attract foreign capital for BAKAD, the Almaty Ring Road Concession. The message was that Ka
    Read More
  • India pushing ahead with infrastructure projects
    July 4, 2012
    Despite the economic downturn, India looks to be pressing ahead with its major infrastructure projects to further boost its incredible growth. Patrick Smith reports India, which like most countries has been affected by the current economic climate, although not to the same extent, is pressing ahead with its ambitious highway construction plans. Each week new projects are completed, started or awarded as the nation seeks to improve its transportation requirements. These are needed to meet the aspirations of
    Read More
  • Tackling the UK's traffic congestion
    February 28, 2012
    The biggest problem on UK roads is congestion, and there is no shortage of ideas as to how it should be tackled. Patrick Smith reports. Congestion (and how to relieve it), along with safety, are among the top priorities facing those responsible for looking after the UK's roads. Road pricing, car-share lanes, greener vehicle initiatives and alternative methods of transport such as buses, trams and rail are all part of the approach, but prior to the current economic climate the nation's love affair with the c
    Read More
  • Brazil’s ANTT launches public consultation for NovaDutra extension
    March 18, 2016
    Brazil's national land transport agency ANTT has launched a public consultation concerning a proposed contract extension of 13 years for the NovaDutra highway concession held by CCR. The deal covers the Rodovia Presidente Dutra highway between Rio de Janeiro and Sao Paulo, according to a report by the Valor Economico newspaper. Consultations will run for 30 days until mid-April and include two sessions in Sao Paulo and Rio de Janeiro.
    Read More

Highlighted Content