RMK13: Rural Development Ministry seeks RM14.39 billion, receives RM8.3 billion indicative ceiling, Ahmad Zahid says

Malaysia’s Rural and Regional Development Ministry faces a funding gap of about RM6 billion for its 2027 development plans, after seeking RM14.39 billion but receiving an indicative ceiling of roughly RM8.3 billion.

Deputy Prime Minister Ahmad Zahid Hamidi said the ministry had recently held a coordination session with the Finance Ministry to explain its priorities and submit proposals for consideration. He described the difference between the requested allocation and the indicative ceiling as a reflection of the government’s challenge in meeting development needs with limited financial resources.

Ahmad Zahid said the ministry must ensure that every ringgit it receives produces the greatest possible value and impact for the public. He said budgeting should not simply divide available funds, but convert limited resources into the highest possible public value because every economic decision carries an opportunity cost.

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However, I hope I am wrong. Whatever amount we eventually receive, we must see the budget as more than a process of dividing allocations.

He added that responsibility for improving spending efficiency belonged to every division, department and agency under the ministry, not only its finance and procurement units. Long-running programs should not continue merely because they have become routine, he said, while large-scale programs should not automatically be treated as the most effective.

Officials should ask whether the problems a program aims to solve still exist, whether its approach remains relevant, whether it overlaps with other programs or agencies, and whether its results justify the resources spent. Ahmad Zahid said efficiency meant directing funding more precisely, shifting resources away from low-value activities and toward measures that directly address public needs.

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A budget is a process of converting limited resources into the greatest public value because, in an economy, every decision has an opportunity cost.