KUALA LUMPUR (Oct 29): A total of RM75.6 billion has been earmarked for development expenditure (DE) in 2022, higher than the RM62 billion revised allocation for 2021 as the country moves into the second year of the 12th Malaysia Plan.

The 2022 Fiscal Outlook report issued by the Ministry of Finance (MoF) stated that RM66.9 billion has been allocated for 5,575 ongoing projects, while RM8.7 billion is slated for 1,180 new projects. 

In terms of sectors, the economic sector remains the largest beneficiary of the allocation, at 53.2% of total DE, followed by the social sector (30%), security (11.9%) and general administration (4.9%).

Of the RM66.9 billion allocated to the economic sector, RM40.2 billion will be used to “increase economic capacity and enhance the nation’s competitiveness”, said the report. 

The focus will be on projects related to transport, trade and industry as well as energy and public utilities subsectors.

The transport sector will be allocated RM15.5 billion to construct, refurbish and maintain key infrastructure, which includes existing projects such as the Electrified Double Track Gemas-Johor Bahru, Rapid Transit System Link, Pan Borneo Highway as well as the expansion of Kuantan Port in Pahang and Sandakan Airport.

New projects that will be undertaken include upgrading of Jalan Marabahai Spur at Tuaran, Sabah, replacing bridges at Sik and Baling, Kedah, as well as a study on an alternative route for Jalan Seremban-Kuala Pilah, Negeri Sembilan.

The trade and industry subsector under the economic sector will see an allocation of RM2.1 billion while RM3.2 billion will be allocated for the energy and public utility subsector. The agriculture subsector will receive RM2.9 billion and RM2.1 billion will be for the environment subsector.

Meanwhile, the social sector, being the second largest DE recipient, will be allocated RM22.7 billion — a 30.7% increase compared to RM17.3 billion in 2021.

Education and training will receive the biggest share of the pie, amounting to RM12 billion, while the health subsector will see RM4.5 billion allocation.

The government also allocated RM1.8 billion for the housing subsector, which will mainly be used for the construction of People’s Housing Project houses and upgrading of civil servant quarters.

The security sector will see RM9 billion in allocation and the general administration sector will get RM3.8 billion in 2022.

For more stories on the Economic Report 2021/2022, click here.