Malaysia's Rural Ministry to settle RM259.5m in project arrears by year-end

Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi has set an ambitious target to resolve a substantial backlog of unpaid invoices within the Rural and Regional Development Ministry, targeting completion by the end of 2024.

The ministry is working to settle approximately RM259.5 million in arrears owed to project contractors, according to Zahid, who made the announcement in Bagan Datuk. The outstanding payments have accumulated across various development initiatives undertaken to support rural communities across the country.

The clearance of these arrears is expected to provide financial relief to contractors who have completed work but remained unpaid, potentially enabling them to meet their own operational obligations. Project delays caused by payment backlogs have historically affected service delivery and infrastructure development in rural regions.

The initiative underscores the government's focus on improving the efficiency of development spending and ensuring timely compensation for completed works. Officials within the ministry have been tasked with accelerating the payment verification and processing procedures to meet the year-end deadline.

Efforts to clear project arrears are part of broader government measures aimed at strengthening rural infrastructure and supporting economic activities in underserved communities across Malaysia.