He said allocations for institutions tasked with helping rural areas had in fact increased, even doubled in one instance.
Lim said there was an allegation that Mara’s operating expenditure would be cut from RM2 billion to RM1.3 billion.
This, he explained, only appeared to be so because the agency’s scholarship and student loans were now classified as development expenditure.
“(The RM2 billion) which was re-classified as developing Bumiputera human capital is a long-term investment for national development.
“In fact, the amount of Mara’s operating and development expenditure remains at RM3.7 billion in 2019,” he said in a statement.
Lim also criticised allegations, which he said were made “on purpose” to mislead the public, that the rural and regional development ministry would receive RM1 billion less next year.
“This is because agencies such as Risda and Felcra, among others, now come under other ministries. Funds for agencies dealing with rural development will increase,” he said.
For instance, allocations to Yayasan Peneraju Pendidikan Bumiputera (Peneraju) to upskill Bumiputera youths will more than double from RM90 million this year to RM210 million in 2019.
“Felda will also receive an additional RM100 million for development for a total of RM260 million in 2019,” he said.
Lim added that the government had also announced the implementation of a government procurement policy prioritising procurement via open tenders.
“The practice of procurement by the previous administration to award mega-projects through direct negotiations and limited tenders has resulted in high costs and financial irregularities, burdening the state’s finances and hurting the people.
“The government will ensure transparency in procurement processes, open competition and cost-effectiveness. The open tender principle is not contrary to the development agenda for Bumiputera entrepreneurs.”
He said whatever was “devoted to Bumiputera entrepreneurs” would remain. The only difference is that the open tender system must be carried out among qualified Bumiputera contractors.
He said there would be no need for the signature of a head of division and it would not be confined to certain Bumiputera cronies as previously.
Lim also said while the government was moving towards open tenders for job awards, his ministry’s guidelines still maintained a 30% quota for Bumiputera firms in terms of annual work value.
“In addition, jobs valued below RM200,000 remain reserved for G1 class Bumiputera contractors (previously known as Class F) and (will be) implemented using quotations,” he said indicating that the open tender system could bring about huge and helpful savings in terms of reducing spending costs, federal government debt and fiscal deficits.
He also assured that assistance schemes for groups such as farmers, including small-scale farmers and padi farmers, and fishermen would be continued in the form of targeted subsidies to avoid abuse and leakages.