KKDW redirects RM200m from rural housing to road arrears after land disputes
Malaysia's Rural and Regional Development Ministry has reallocated RM200 million, or 48.4% of the original 2026 budget for the Program Perumahan Rakyat Sejahtera, to settle rural road project arrears. Land ownership disputes, unsuitable sites and overlapping applicant names delayed the housing progr
PETALING JAYA (Nov 6): The Rural and Regional Development Ministry (KKDW) has redirected nearly half its original 2026 allocation for the Program Perumahan Rakyat Sejahtera (PPRS) to settle rural road project arrears after land disputes, unsuitable sites and overlapping applicant names delayed housing assistance.
Deputy Minister Datuk Rubiah Wang told the Dewan Rakyat on Thursday (Nov 5) that the ministry had reallocated RM200 million because implementation constraints had delayed the housing programme, despite strong demand, Bernama reported. The sum represents about 48.4% of PPRS’s original RM413 million allocation for the year.
Rubiah said some projects had to be postponed and re-examined because of disputes among heirs over land ownership, a lack of suitable sites and overlapping applicant names. The reallocation was carried out through a Notice of Change mechanism to avoid leaving funds unspent. Rubiah maintained that the adjustment did not mean the ministry was sidelining housing assistance for rural communities.
PPRS provides new homes and repairs for poor and hardcore-poor rural households. However, eligibility extends beyond household income: applicants must own land or obtain written permission to use land belonging to another party, according to KKDW’s programme guidelines. Recipients are responsible for providing a suitable construction site, while new-home assistance covers the house itself, excluding surrounding infrastructure such as access roads and bridges.
The ministry’s published assistance ceilings provide up to RM79,000 for a new three-bedroom, 680 sq ft home in Peninsular Malaysia and RM85,000 in Sabah, Sarawak and Labuan. Repairs are capped at RM20,000 nationwide. The rates were raised from RM66,000 for new homes in the peninsula and RM79,000 in Sabah, Sarawak and Labuan, RTM reported in February 2025.
The latest transfer comes amid a wider backlog of payments for projects under KKDW. On Nov 1, Deputy Prime Minister and Rural and Regional Development Minister Datuk Seri Dr Ahmad Zahid Hamidi said he hoped outstanding payments could be resolved by year-end. These included payments for completed works and progress payments due to contractors and suppliers. Bernama’s report cited an earlier disclosure that outstanding interim payments to contractors and compensation to landowners totalled about RM259.5 million as at Sept 30, involving 112 projects.
For 2027, Rubiah said RM416.2 million had been allocated to PPRS, with new construction and repairs expected to benefit 12,457 recipients nationwide. Meanwhile, rural road projects also face implementation constraints. Rubiah said a Finance Ministry directive on Sept 10 to defer new letters of acceptance was intended to control spending and allow earlier payment commitments to be settled. She warned that delays in further approvals could force new project tenders to be cancelled and procurement restarted. In Sabah, the deferral affected 20 rural road projects at the pre-implementation stage, while 62 projects already under construction would continue.
