DEVELOPMENT projects in the 12th Malaysia Plan (12MP) for 2022 will be reviewed in line with guidelines issued by the Ministry of Finance, said Minister in the Prime Minister’s Department (Economy) Mustapa Mohamed.

In a statement, he said this is to optimise government spending in financing some of the additional subsidy-related expenditure.

Mustapa said a meeting on development expenditure (DE) was held today and attended by representatives of the Ministry of Finance, Ministry of Works, Implementation Co-ordination Unit, Prime Minister’s Department (ICU) and Public Works Department.

“Today’s meeting decided projects under review include those that have not yet started the procurement process or being advertised; non-priority projects (except those that have an immediate impact on the people); and projects facing problems such as site issues,” he said.

Meanwhile, he said projects for which tender advertisements, letters of intent and letters of acceptance have been issued will continue.

The Economic Planning Unit noted that expenditure for aid and subsidies is projected to reach RM77.7 billion compared to the allocation of RM31 billion approved in Budget 2022.

Mustapa also said an engagement session between ministries and departments would be held next week to outline the review.

“The government will ensure that the austerity measures implemented do not affect the country’s economic recovery efforts and the well-being of the people,” he added.

The Public Expenditure Savings Guidelines issued by the Ministry of Finance on July 14 outlined that operating expenditure achieves at least 5% savings from the remaining allocation for 2022.

As for development expenditure, projects that have not started the procurement process or being advertised are reviewed for priority, and for non-priority projects that have been identified should be postponed except for projects that have an immediate impact on the well-being of the people. – Bernama, July 19, 2022.