DAP lawmaker Lim Guan Eng publicly called on Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi to explain a RM2.1 billion overspending by the Rural and Regional Development Ministry (KKDW) across three years ending in 2025 [1, 2].
The ministry exceeded its allocated budgets consecutively from 2023 through 2025. It spent RM1.8 billion against a RM1.1 billion allocation in 2023, RM2 billion versus RM1.3 billion in 2024, and RM2.3 billion compared to RM1.6 billion in 2025 [3, 1, 2]. The cumulative overspending under Zahid's tenure totaled RM2.1 billion [3, 1, 2].
Lim condemned the overspending as a breach of financial procedures that endangers Malaysia's fiscal and economic stability. "What Ahmad Zahid Hamidi has done directly threatens financial security and economic stability," Lim said [1]. He warned against other ministries following similar spending patterns without regard to the country's affordability [2].
The lawmaker questioned whether the contracts awarded under the ministry's elevated expenditures were transparent and accountable. Lim also highlighted that only the Finance Ministry is permitted to issue support letters or guarantees, raising concerns about potential hidden government guarantees if others issue such letters [3, 1].
Lim urged Zahid, who also oversees the Rural and Regional Development Ministry, to publicly clarify the reasons for the overspending. He said Zahid should demonstrate prudence and restraint in managing public funds [3, 1, 2]. "This is a huge sum. Previously, the ministry was not red-flagged," Lim remarked [2].
The controversy comes after three straight years of the ministry surpassing its approved budgets significantly. This marks a substantial rise in government spending within the ministry's portfolio during Zahid's leadership [3, 1, 2].
Lim's call for accountability was made today, emphasizing transparency and financial discipline as urgent priorities [1, 2].
