Economy Minister Akmal Nasrullah says additional allocations to rescue abandoned national projects should be avoided amid the global supply crisis.
KUALA LUMPUR: Any additional allocation to rescue “sick” national projects should be avoided as the country is facing a global supply crisis, said Economy Minister Akmal Nasrullah Mohd Nasir.
He said the ministry has approved an additional allocation of RM50 million to rescue the Sungai Limau Water Treatment Plant (LRA) project in Kedah, which was abandoned after the original contract was terminated last year.
“Shortly after I began my duties at the Ministry of Economy, I received the Notice of Change, and we agreed to approve an additional RM50 million allocation to save the project.
“In facing the current economic crisis, we need to reduce wastage from incomplete or abandoned projects to ensure the country’s economic resilience is maintained,” he said after launching the 32nd edition of the Malaysia Economic Monitor report here today.
The report, issued by the World Bank, is themed “Raising the Ceiling, Raising the Floor: The Jobs Agenda as a Productivity Agenda”.
Akmal Nasrullah also stressed that the Ministry of Economy views the issue from a development perspective, noting that water reserve levels in Kedah are currently at zero per cent.
“This is not a new issue; it has in fact been reported in the National Water Services Commission reports since 2020.
“When we talk about national development, the availability of basic infrastructure such as water is critical,” he said.
He also stressed that the second major challenge was the failure of the previously appointed contractor to complete the project, leading to the termination of its contract.
“When projects are abandoned, it falls back to the Ministry of Economy for the Notice of Change process, which then creates additional cost burdens.
“We must understand that as long as this LRA project is not completed, the water crisis in Kedah will not be resolved,” he said.
Akmal Nasrullah added that although a rescue contractor has been identified, the project recovery period is expected to take about three years.
