Putrajaya pledges continued financial support in strategic transport projects in 2023

• These financial commitments, together with other commitments of projects under public private partnership (PPP) and private financing initiatives (PFI), will form part of the government’s RM97 billion development expenditure (DE) in 2023.

KUALA LUMPUR (Feb 24): The government has pledged to continue its financial commitment to national strategic projects in transport such as the light rail transit and the mass rapid transit, according to the revised 2023 Economic and Fiscal Outlook report.

These financial commitments, together with other commitments of projects under public private partnership (PPP) and private financing initiatives (PFI), will form part of the government’s RM97 billion development expenditure (DE) in 2023.

At end-2022, Putrajaya’s commitment to PPP projects and financial obligations of PFI projects amounted to RM142.2 billion, down from RM151.1 billion in 2021.

There are 105 ongoing PPP projects with an estimated commitment of RM92.1 billion, versus RM97.8 billion in 2021, the report showed.

Meanwhile, outstanding PFI liabilities totalled RM50.1 billion at end-2022, down from RM53.3 billion in 2021. These projects include refurbishment of schools, universities and training centres, as well as repair and maintenance of federal buildings.

Going forward, the government said it will enhance the implementation of PPP projects in terms of governance, service delivery, financing and approach for projects to achieve better outcomes and value for money.

“Meanwhile, the government has reiterated emphasis on enhancing governance, plugging leakages and implementing public finance best practices in mitigating further exposure of contingent liabilities,” it added.