Budget 2027: Works ministry allocated RM10.882 billion – 1.78% increase; majority for development expenditure

The ministry of works (KKR) has been allocated RM10.882 billion under Budget 2027, which was announced by prime minister Datuk Seri Anwar Ibrahim last Friday (October 9, 2026). According to the ministry, this represents an increase of 1.78% from the RM10.692 billion allocated for 2026.

Works minister Datuk Seri Alexander Nanta Linggi said from the increased allocation, RM1.146 billion is for operating expenditure (up 5.67% from RM1.085 billion) and RM9.376 billion (up 1.34% from RM9.607 billion) is for development expenditure. The latter includes RM1.38 billion for the Pan Borneo Highway, RM801.46 for the development of roads and bridges in Sabah and RM565.30 million for Sarawak.

Additionally, almost RM800 million has been allocated for the maintenance of federal roads, including RM350 million for contractors in East Malaysia. The special allocation for district engineers throughout the country has also increased to RM40 million compared to RM30 million last year to strengthen project implementation at the district level.

The ministry also welcomed the allocation of RM7.5 billion to empower bumiputera small contractors of grades G1 to G4, which is an 87.5% increase from RM4 billion in 2026.

“KKR will ensure that every allocation translates into results that can be felt by the people through quality project implementation, close progress monitoring and financial management with integrity. The ministry’s priority is to ensure that the infrastructure developed is safe to use, meets the needs of the community and delivers the best value to the nation,” said Nanta.