Public sector must spend within its budget, says Malaysia's chief secretary

Malaysia's public agencies must spend only what has been allocated in the budget, Chief Secretary Shamsul Azri Abu Bakar said as a dispute over delayed contractor payments drew attention in Putrajaya.

"In the public service, spending must follow what has been budgeted and allocated," Shamsul told reporters after a public-sector artificial intelligence seminar and awards ceremony. He declined to comment further on statements from the ministries involved and directed questions to the Finance Ministry.

Deputy Prime Minister Ahmad Zahid Hamidi had expressed frustration over delays in paying contractors carrying out development projects under the Ministry of Rural and Regional Development. He said some contractors had completed work and met contractual milestones, including on rural-road projects, but were still waiting for payment.

Treasury Secretary-General Johan Mahmood Merican said the Finance Ministry had not blocked the ministry's allocation for rural-road projects and had released it in full. He said payment problems arose because the ministry had already spent almost all of its current-year allocation.

Finance Ministry records showed the ministry spent RM1.8 billion against an allocation of RM1.1 billion in 2023, RM2 billion against RM1.3 billion in 2024, and RM2.3 billion against RM1.6 billion in 2025. This year, its spending stood at RM1.9 billion against an allocation of RM2.1 billion, according to the records.

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In the public service, spending must follow what has been budgeted and allocated.