No cuts to rural development funds

> Rumours by some quarters meant to confuse public: Guan Eng

PETALING JAYA: Claims by the Opposition that the government had cut allocations for rural communities are false, said Finance Minister Lim Guan Eng.

He said rural development is a top priority for the government in Budget 2019.

Lim also denied that the government had cut allocations to Majlis Amanah Rakyat (Mara) by RM2 billion.

“It only appeared so because the agency’s scholarship and student loans of RM2 billion were now classified as development spending and Mara’s operating budget remains at RM3.7 billion.”

He said some quarters had attempted to confuse the public by claiming the Rural and Regional Development Ministry will receive more than RM1.1 billion less next year, as agencies such as Risda, Felcra and the Department of Orang Asli Development (Jakoa) were no longer under the ministry’s purview.

“Funds for agencies dealing with rural development had been increased. Yayasan Peneraju Pendidikan Bumiputra had seen its allocation more than double from RM90 million to RM210 million next year.

“Felda will receive an additional RM100 million for development, for a total of RM260 million in 2019,” Lim said in a statement yesterday.

The previous administration had awarded mega projects through direct negotiations, that resulted in high costs and financial irregularities that hurt the country’s finances. he added.

Lim said the Pakatan Harapan government has moved towards implementing an open tender system but maintained the 30% quota for bumiputra firms in terms of annual work value.

Contracts below RM200,000 will be reserved for G1 class bumiputra contractors (previously known as Class F) and implemented using quotations.

The government is also committed to helping the agriculture sector, that contributes to the country’s growth and food security.

Lim said the government will continue to help smallholders, farmers and fishermen but it will be in the form of targeted subsidies to avoid abuse and leakage.