DEPUTY Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi has expressed anger over delays in payments to contractors carrying out development projects under the Rural and Regional Development Ministry (KKDW), warning that the problem is threatening the survival of businesses across the supply chain.
Zahid, who is also Rural and Regional Development Minister, said some contractors had completed work and achieved the progress required under their contracts, including Rural Roads (JALB) projects, but were still waiting for payment.
He said the delays had created serious cash-flow problems, with some contractors forced to shut down while others faced lawsuits from material suppliers and subcontractors.
"How many contractors have already closed down? How many of them have been sued by material suppliers? How many subcontractors have sued the contractors?" he said during the KKDW monthly assembly Putrajaya today.
Zahid said the ministry was being blamed for the delays even though some of the underlying causes lay elsewhere.
"KKDW is being blamed, but the cause lies elsewhere," he said.
He warned that delayed payments did not affect contractors alone, but also suppliers, smaller contractors, workers and service providers throughout local economic chains.
According to Zahid, a single delayed payment can trigger a much wider economic impact than the value of the payment itself.
"I understand the fiscal constraints we are managing, but this matter needs to be handled more sensitively. I would like to request that the relevant parties give serious attention to this issue," he said.
Zahid also criticised the implementation of allocations, saying spending did not always correspond with approved budgets.
"Budget allocations that have been announced must be channelled! Do not implement projects that have no allocation in the budget.
"Those who should be paid are not being paid, while those who do not need to be paid are being paid. Things that are 'not budgeted for' are being carried out, while those that are 'budgeted for' are not being implemented. That is the problem before us. I am not angry, I am just 'hot'," he said.
He said sound fiscal management was not simply about controlling expenditure, but also ensuring that existing government commitments were handled responsibly.
With only four months remaining in the year, Zahid instructed KKDW to minimise new commitments and concentrate on completing projects and obligations that had already been started.
He also ordered all divisions, departments and agencies under KKDW to launch a 'Zero Pending Operation' to resolve outstanding issues and projects before the end of the year.
The operation will cover delayed projects, payments, land and utility matters, contracts, assets and pending decisions.
Zahid said every outstanding issue must have a clearly identified person responsible for resolving it, a deadline and a clear decision.
"Problems must no longer be carried from one meeting to another without anyone being truly responsible for resolving them," he said.
The directive underscores the government’s focus on ensuring approved development allocations translate into actual project delivery and timely payments, particularly as fiscal constraints continue to put pressure on public spending. - September 1, 2026
