Lim Guan Eng calls for action against Zahid over RM2.1b Rural Development Ministry overspending

Lim Guan Eng calls for action against Zahid over RM2.1b Rural Development Ministry overspending



In a statement today, Lim Guan Eng said allowing spending beyond approved allocations could set a bad precedent, with other ministries potentially repeating the practice in ways that could affect the national treasury and financial stability. — Picture by Sayuti Zainudin


Summary

• DAP's Bagan MP Lim Guan Eng criticised Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi for the Rural and Regional Development Ministry spending RM2.1 billion over its approved allocations in three years.
• Lim warned this overspending could endanger financial stability and highlighted potential legal breaches and the need for transparency in contractor selection.
• He called for accountability from Zahid, emphasising the importance of prudent spending and compliance with national financial laws.

By Malay Mail
First Published: Friday, 04 Sep 2026 9:52 AM MYT


KUALA LUMPUR, Sept 4 — DAP’s Bagan MP Lim Guan Eng has called for Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi and the Rural and Regional Development Ministry to face action after the ministry spent RM2.1 billion more than its approved allocations over three years.

Lim said allowing spending beyond approved allocations could set a bad precedent, with other ministries potentially repeating the practice in ways that could affect the national treasury and financial stability.


He described Zahid’s actions as irresponsible, saying they breached existing financial procedures and could lead to enforcement under relevant laws.


“What Ahmad Zahid Hamidi has done directly threatens financial security and economic stability,” he said in a statement today.


Lim said the potential consequences should be considered if all ministries were allowed to spend freely without taking into account whether the country could afford such expenditure.

He also questioned which contractors benefited from Rural and Regional Development Ministry projects that resulted in spending exceeding approved allocations, and whether they had been selected according to regulations through a transparent, open and accountable process.

Lim cited Finance Ministry figures showing the ministry spent RM1.8 billion in 2023 against an approved allocation of RM1.1 billion.


In 2024, spending rose to RM2 billion against RM1.3 billion allocated, while RM2.3 billion was spent in 2025 against an allocation of RM1.6 billion.

He said the total excess spending amounted to RM2.1 billion from 2023 to 2025, when the ministry was under Zahid’s leadership.

Lim said RM2.1 billion was a significant amount, adding that similar overspending had not been an issue in the years before 2023.

He also pointed to the government’s restrictions on support letters issued by ministries other than the Finance Ministry, saying such letters could amount to hidden government guarantees.

Lim said only the Finance Ministry was permitted to issue support letters or guarantees under the country’s financial laws, citing previous action over a support letter issued by the Transport Ministry without its approval.

As deputy prime minister, Lim said Zahid should set an example of prudent spending and explain fully to Malaysians why the ministry had exceeded its approved allocations.

***

Frigging totally irresponsible