Kuala lumpur: The government has increased the allocation for works procurement under the Ministry of Education (MOE) from RM400 million to RM900 million, as announced by Prime Minister Datuk Seri Anwar Ibrahim. This boost in funding aims to support the construction of additional classrooms to accommodate the anticipated rise in Year One enrolment starting next year.

According to BERNAMA News Agency, the Prime Minister noted that the initial allocation of RM400 million was set for the construction of 2,500 additional classrooms across more than 800 schools under Budget 2026. To ensure adequate classroom space for incoming Year One students, the government has now approved an additional RM500 million, raising the total to RM900 million for the construction of 6,000 classrooms. Anwar made this announcement during a meeting with Bumiputera small contractors at the Perak State Education Complex.

Present at the event were Perak Menteri Besar Datuk Seri Saarani Mohamad, Education Minister Fadhlina Sidek, and Deputy Education Minister Wong Kah Woh. The Prime Minister also reiterated the government's commitment to supporting Bumiputera small contractors, emphasizing that works procurement allocations are being adjusted in response to the global supply crisis.

In the context of Budget 2026, RM2.4 billion was initially allocated for small contractors in the G1 to G4 categories. This amount has now been increased to RM4 billion for 2026 through a reallocation of government funds. Anwar assured that small contractors with good performance records would continue to receive project awards to facilitate their growth.

Anwar stressed the importance of project delivery and execution by small contractors, assuring them of greater focus and support if they meet performance expectations. Despite the global supply crisis, the Prime Minister emphasized that spending on essential and critical sectors, including education, would not be reduced. Instead, allocations would be considered for increases based on sectoral needs.

He addressed concerns about expenditure reduction, urging the public not to judge without understanding the facts. Anwar clarified that additional projects are not being cut but are prioritized where necessary. At the event, he presented 100 letters of acceptance to contractors for the construction of additional classrooms.