Malaysia's rural ministry slashes RM250m in spending to fund fuel subsidies
The Ministry of Rural and Regional Development (KKDW) has cut spending by at least RM250 million this year. The savings came from reducing low-impact programmes and reallocating funds to more urgent needs. Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi has also called for a fresh approach to rural economic development. The ministry achieved these savings by scaling back promotional events, product exhibitions, and other activities with limited reach. Instead, KKDW will focus on essential infrastructure, including water supply, electricity, and rural amenities. The redirected funds will now go to the Ministry of Finance (MOF) to support fuel subsidies for the public.
A recent circular from MOF instructed all ministries to adopt stricter cost-saving measures. KKDW responded by reviewing its programmes and prioritising those with greater community impact.
Zahid has urged KKDW staff to embrace the National Rural Economy as a guiding framework. This strategy aims to boost incomes, create economic opportunities, and improve living standards in rural areas. He highlighted that rural communities already have valuable assets: land, plantations, commodities, biomass, micro-businesses, youth, women, Orang Asli groups, cooperatives, and strong social ties. If organised into a structured ecosystem, these resources could drive national growth. The RM250 million in savings will now assist with public fuel subsidies. KKDW’s shift in spending reflects a broader push for efficiency across government ministries. Meanwhile, the National Rural Economy plan seeks to unlock the potential of rural areas by better coordinating existing resources.
