Malaysia

Budget unveils RM3.3 billion plan to close development gaps across rural and urban divides

Budget 2026 prioritises equal access to infrastructure, clean water, electricity, and internet connectivity for all Malaysians

Updated 1 year ago · Published on 10 Oct 2025 6:55PM

Budget unveils RM3.3 billion plan to close development gaps across rural and urban divides
Anwar reaffirms the Government’s commitment to the dual-network 5G model, with the aim of achieving 80 percent national coverage by 2026 - October 10, 2025

THE Malaysian Government has announced a comprehensive RM3.3 billion investment under Budget 2026 to accelerate infrastructure development in rural areas, with Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim declaring that “every Malaysian child deserves equal access to basic infrastructure — it is a matter of justice that cannot be delayed.”

In his Budget speech, Anwar reaffirmed the MADANI Government’s commitment to bridging regional disparities, pledging balanced development “from the remote villages of Sabah and Sarawak to the heart of Kuala Lumpur.”

A total of RM2.5 billion has been earmarked to build and repair rural roads, with priority given to critical connections such as Pos Lenjang to Koa Jernang in Pahang, Mangkapon in Sabah, Kampung Pong in Hulu Perak, and Kampung Tok Adis to Kampung Banggol in Terengganu.

Over RM700 million will be allocated to provide clean water and electricity, including the installation of hybrid solar panels for 3,200 homes in remote settlements across Sabah and Sarawak.

Another RM90 million will fund village bridges and street lighting projects, including the installation of energy-efficient and solar-powered lights.

Special focus will also be placed on Pulau Banggi to improve road access and upgrade clinic facilities.

Addressing national water security, Anwar announced that Pengurusan Aset Air Berhad will invest up to RM13 billion over five years, with major upgrades including the Langat 2 Water Treatment Plant, capable of processing 760 million litres daily for 1.5 million residents in Selangor, Kuala Lumpur, and Putrajaya. In Kedah, new treatment facilities at Machang, Sungai Karangan, and Sidam Kiri will collectively manage up to 200 million litres per day.

The Government is also continuing its National Non-Revenue Water Programme with a RM3 billion budget to replace over 820 kilometres of ageing water pipes across Johor, Melaka, Negeri Sembilan, Kelantan, Pahang, and Selangor. Infrastructure projects in Langkawi include underground dams, tube wells, and retention structures in Padang Matsirat, at a cost of over RM400 million.

Digital inclusivity forms a key pillar of this initiative.

The Government will allocate RM770 million to complete Phase 2 of the Point of Presence (PoP) programme, expanding internet access near industrial zones and selected schools in rural and interior areas.

Through the JENDELA 2 programme, RM780 million will be invested to extend broadband coverage to 2,700 new locations.

Anwar reaffirmed the Government’s commitment to the dual-network 5G model, with the aim of achieving 80 percent national coverage by 2026 and ensuring that both citizens and businesses benefit from affordable, high-speed internet. - October 10, 2025

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