‘RM10.9b fund proof of govt’s commitment to Keluarga Malaysia’
PETALING JAYA: Caretaker Prime Minister Datuk Seri Ismail Sabri Yaakob has stressed that rural development is the government’s priority, with RM10.93 billion allocated to the Rural Development Ministry as recorded in Budget 2023.
Caretaker Rural Development Minister Datuk Seri Mahdzir Khalid said there has been a 4% increase or almost RM424.9 million in additional funds channelled to the ministry.
This proves the commitment of the government to Keluarga Malaysia to ensure that the people’s welfare in rural areas is taken care of.
“The allocation of RM10.93 billion to the ministry is an inclusive and comprehensive budget in ensuring that nobody is left behind, including the B40s and rural residents.
“The ministry supports the efforts implemented by the caretaker prime minister and caretaker finance minister through Budget 2023 as we improve the people’s well-being, strengthen business resilience and promote economic prosperity, which will benefit 8.09 million rural residents,” he said.
To stimulate the rural economy, the ministry received allocations amounting to RM114.4 million for rural economic activities.
Mahdzir said the amount was an increase of RM84 million or 26.6% compared with 2022.
Almost all agencies under the ministry have specific programmes for the development of rural entrepreneurs such as Majlis Amanah Rakyat, Felcra Berhad, Community Development Department, Rubber Industry Smallholders Development Authority (Risda) and the Department of Orang Asli Development.
Regional agencies, namely the Central Terengganu Development Authority, South Kelantan Development Board, South East Johore Development Authority, Kedah Regional Development Authority and Penang Regional Development Authority are also taking part in the mission to develop rural entrepreneurs.
The ministry has allocated RM612.59 million for Risda, which will benefit small rubber farmers under the agency.
This is an increase of RM104.6 million or 20.6%, which also covers monsoon assistance of RM256 million or RM800 for each of the 320,000 smallholders.
This is an increase of RM200 per smallholder from the RM600 previously.
About 72% of rural entrepreneurs in 2021 have successfully increased their revenue after receiving funding from the “Sokongan Pengukuhan Keusahawanan Luar Bandar (SPKLB)” initiative.
The ministry is expecting 60% of rural entrepreneurs to grow their income in 2022, with the percentage forecast to rise to 70% in 2023 under the SKPLB programme.
Apart from that, 62% of rural entrepreneurs raised their annual sales value by at least 20% after receiving funds under the Pembiayaan Perniagaan Mara in 2021.
The ministry has anticipated that 30% of rural entrepreneurs would increase their annual revenue by at least 20% in 2022 and 2023 through the initiative.
In 2021, under the “Program Peningkatan Pendapatan”, 68.3% of rural entrepreneurs from the B40 group increased their income and the ministry is expecting this to rise to 70% in 2022 and 2023.