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 stated that 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.

According to BERNAMA News Agency, Akmal Nasrullah mentioned that shortly after he began his duties at the Ministry of Economy, he received the Notice of Change and agreed to approve an additional RM50 million allocation to save the project. He emphasized that in facing the current economic crisis, it is necessary to reduce wastage from incomplete or abandoned projects to ensure the country's economic resilience is maintained. These remarks were made during the launch of the 32nd edition of the Malaysia Economic Monitor report.

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. He pointed out that this is not a new issue, as it has been reported in the National Water Services Commission reports since 2020. He highlighted the critical nature of basic infrastructure availability, such as water, for national development.

Further, Akmal Nasrullah identified the failure of the previously appointed contractor to complete the project as a major challenge, which led to the termination of its contract. He explained that when projects are abandoned, it falls back to the Ministry of Economy for the Notice of Change process, creating additional cost burdens. He urged understanding that as long as the LRA project remains incomplete, the water crisis in Kedah will persist.

Lastly, Akmal Nasrullah added that although a rescue contractor has been identified, the project recovery period is expected to take about three years.