Malaysia

Budget 2026: Zahid vows stronger rural investment to boost infrastructure

DPM says the RM12.4 billion allocation for the Ministry of Rural and Regional Development will be used to address core challenges faced by rural communities — from infrastructure and income generation to education and digital access

Updated 9 months ago · Published on 17 Oct 2025 8:30AM

Budget 2026: Zahid vows stronger rural investment to boost infrastructure
Increased funding is designed to elevate the socio-economic well-being of rural populations through targeted initiatives - October 17, 2025

THE Ministry of Rural and Regional Development (KKDW) will continue to prioritise inclusive and comprehensive rural development under Budget 2026, which allocates RM12.4 billion — an increase of 3.69 per cent from the previous year.

Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said the increased funding is designed to elevate the socio-economic well-being of rural populations through targeted initiatives.

“KKDW constantly considers the issue of the cost of living and focuses on the social safety net to improve the living standards and increase the income of the rural community,” he said during a televised interview on ‘Ruang Bicara: Merealisasikan Belanjawan 2026’, broadcast by Bernama TV.

Among the budget’s key priorities is the upgrading of rural infrastructure, with RM3.3 billion allocated to improve road connectivity, access to clean water, electricity supply and the installation of village streetlights, including solar-powered units.

“Although the amount seems large, its implementation needs to be done in phases according to the priority of the areas to ensure a more immediate impact,” Ahmad Zahid added.

Nearly RM2.4 billion will also be channelled to FELDA, RISDA, and FELCRA to safeguard the livelihoods of over 720,000 smallholders and settlers nationwide. The goal, according to the Deputy Prime Minister, is to enhance economic resilience through value-added and downstream activities, while stabilising commodity prices.

KKDW is also intensifying efforts in digital development across rural areas, with plans to expand 5G coverage and encourage youth participation in the digital economy.

“We want the rural community to become modern and competitive entrepreneurs, not just relying on traditional products. Online orders by rural entrepreneurs have now increased by about 35 per cent,” he said.

The budget allocates RM4 billion to MARA to support entrepreneurship and education. This includes RM50 million to upgrade 363 rural business premises and RM100 million to scale up Bumiputera enterprises.

In education, KKDW will invest RM70 million to provide smart televisions to 10,800 early childhood classrooms under the Community Development Department (KEMAS), spanning preschools, nurseries, and kindergartens.

According to Ahmad Zahid, the move is part of broader efforts to embed digital learning from as early as age three, to familiarise children with technology and modern teaching tools.

Support for Malaysia’s indigenous Orang Asli community will also be enhanced, with RM412 million earmarked to improve infrastructure, housing, education, and socio-economic mobility.

In disaster preparedness, RM2.2 billion has been allocated across multiple agencies — including NADMA, JPS, and JKR — to improve disaster management capabilities.

Ahmad Zahid emphasised the importance of modern technologies in mitigating disaster impact: “Early warning systems and the use of satellite and communication technology are crucial to reducing the risk of loss of life and property.”

BN to Announce Sabah State Poll Candidates One Week Before Nomination Day

Separately, Zahid, who is also Barisan Nasional (BN) chairman, announced that the coalition will reveal its list of candidates and constituencies for the upcoming 17th Sabah State Election (PRN) one week before nomination day.

“BN will not be contesting all 73 state seats. We will focus on specific areas,” he told Bernama.

On election preparedness, he said BN would intensify its efforts to win every contested seat following its defeat in the 16th Sabah state election in 2020.

He reiterated that BN will not cooperate with Gabungan Rakyat Sabah (GRS) for this election cycle, but acknowledged that forming a post-election government may require political alliances.

“So far, no analyst has suggested that a single party or coalition can form the government with a clear majority, which means Sabah’s political reality demands collaboration — both before and after the election,” he said.

Ahmad Zahid confirmed he had already received candidate shortlists, with three to five names proposed for each seat.

The Election Commission has set 29 November as polling day, with nominations to take place on 15 November and early voting scheduled for 25 November. Sabah has 79 state assembly seats, of which 73 are elected, and six are appointed. - October 17, 2025

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