Malaysia

Government orders fast-tracking of small projects from February, says PM

All ministries have been instructed to accelerate the implementation of small-scale development projects beginning as early as February, Prime Minister Datuk Seri Anwar Ibrahim announced today

Updated 7 months ago · Published on 05 Jan 2026 2:08PM

Government orders fast-tracking of small projects from February, says PM
The decision expresses a wider push to deliver tangible outcomes and stimulate grassroots economic activity (Photo from Awani) - January 5, 2025

THE government has directed all ministries to ensure that small-scale development projects are implemented without delay, with work expected to commence as early as February, Prime Minister Datuk Seri Anwar Ibrahim said.

Anwar said the directive covers projects such as rural roads, the construction of residential quarters and the upgrading of dilapidated clinics.

To expedite delivery, the government will allow direct contractor appointments for projects valued at up to RM200,000 and quotation-based procurement for projects worth up to RM1 million.

“For that reason, small projects involving categories G1 to G4, which are mostly handled by small companies including Bumiputera contractors, have been allocated RM2.4 billion and they must begin now,” he said.

He added that state governments and district offices have been instructed to ensure immediate implementation and to fast-track all procedures.

“We want to see effective execution, not merely announcements,” he said.

The Prime Minister was speaking while delivering his 2026 New Year Address at the Prime Minister’s Department monthly assembly here today.

In his address, Anwar also announced that payments under the Sumbangan Tunai Rahmah (STR) 2026 Phase One programme will begin on 20 January.

He said micro, small and medium-sized enterprises will be granted tax exemptions on sales of up to RM1.5 million, while the government will extend the transitional period for the implementation of e-invoicing without penalties by one year for companies with annual sales between RM1 million and RM5 million.

Anwar further announced allocations for the upgrading of schools, with RM80 million earmarked for Chinese national-type primary schools and RM50 million for Tamil national-type primary schools.

He stressed that the adoption of digital systems must be pursued more seriously across government agencies to improve the quality and efficiency of public services.

The Prime Minister also confirmed that the Freedom of Information Bill will be tabled and passed in Parliament this year, describing it as a key component of the government’s reform agenda aimed at strengthening transparency and accountability.

Anwar said the measures outlined in the New Year address reflect the administration’s commitment to swift execution, inclusive economic growth and meaningful institutional reform. - January 5, 2025

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