Only new, non-priority projects to be put off under austerity measures, says minister

Minister in the Prime Minister's Department Mustapa Mohamed today clarified which projects would be postponed under the government's cost-saving drive, saying the austerity measures will apply to new projects and those which have yet to undergo the procurement process. 

The measures will also apply to non-priority projects and those with no immediate impact, in addition to new projects facing problems.

"Projects in the midst of implementation, and which have issued tender advertisements, letters of intent and letters of acceptance will continue," he said in the Dewan Rakyat.

"Projects funded by the Infra Fund as well as all important maintenance projects that have already been approved will also continue.

"This is important to support the government's efforts to boost economic recovery post Covid-19," he said in response to Ahmad Fahmi Mohamed Fadzil (PH-Lembah Pantai), who asked the government to explain its plans regarding the postponement and cancellation of projects. 

The government recently announced a series of cost-cutting measures to help tackle economic issues including inflation. 

Mustapa, who is the Jeli MP, said an inter-ministry engagement session had identified 30 projects with a cost of RM100 million for postponement.

Replying to an additional question from Fahmi, Mustapa said the Mass Transit Transit (MRT) 3 project, the East Coast Rail Link (ECRL) project, and the Pan-Borneo Highway would continue.

The MRT 3 tender was opened in April at an estimated cost of RM31 billion. Progress on the ECRL project meanwhile was estimated at 29%.

The Pan-Borneo Highway is about 80% built and is expected to be completed in five years' time.