Kuala lumpur: Any request by a state government for additional funding for development projects involving a Notice of Change (NOC) must be renegotiated before the Federal Government decides on any extra allocation or loan, Prime Minister Datuk Seri Anwar Ibrahim told the Dewan Rakyat today.
According to BERNAMA News Agency, the Prime Minister emphasized that an NOC carries financial implications and requires a fresh assessment of several factors, including whether the increase in project costs was caused by the contractor. 'The moment a Notice of Change is issued, it involves additional funding, and the matter must be renegotiated. First, we need to determine the contractor's role and the root cause of the cost increase,' he stated. Anwar further explained that once additional funding is required, it involves the Federal Government, which cannot automatically provide extra allocations or loans whenever costs escalate.
The Prime Minister was responding to a supplementary question from Datuk Awang Hashim (PN-Pendang) regarding Kedah's request for additional funding for the Pulau Bunting Water Treatment Plant project, which requires the approval of an NOC. Anwar mentioned that Deputy Prime Minister and Energy Transition and Water Transformation Minister Datuk Seri Fadillah Yusof would offer a more detailed explanation on the matter.
Meanwhile, Anwar assured that the Federal Government would continue engaging with state governments, balancing revenue-sharing demands against development needs and critical infrastructure priorities. He noted that revenue sharing remains subject to negotiations and that states like Kelantan, Sabah, and Sarawak receive larger allocations due to urgent development requirements. In Kelantan, flood mitigation projects are prioritized, while in Sabah and Sarawak, the focus is on basic infrastructure, including highways and other critical development projects.
Additionally, Anwar highlighted the government's commitment to prioritizing the development of strategic growth areas to drive the national economy. These areas include the Johor-Singapore Special Economic Zone (JS-SEZ), Kerian in northern Perak, Kuching in Sarawak, and Sabah. He pointed out Sarawak's significant progress in data centres, information technology, and semiconductor manufacturing through collaborations with foreign expertise, emphasizing that prioritizing these sectors will naturally accelerate economic growth.