Prime Minister Anwar Ibrahim said the NFC meeting today agreed to review the RM400 million allocation, known as Tahap Pembangunan Ekonomi, Infrastruktur dan Kesejahteraan Hidup (Tahap), to improve its distribution.

“This decision reflects the unity government’s commitment in providing state governments the opportunity to implement development projects according to their respective priorities,” he said in a statement.

Anwar, who is also the finance minister, said the decision would strengthen the momentum of the country’s economic recovery.

Previously, it was reported that the government would increase the annual grant to each state from RM300 million to RM400 million under the 2023 federal budget.

Anwar was quoted by Utusan Malaysia as saying that the allocation would help each state, especially Kedah and Perlis, to develop themselves.

The NFC today also agreed to enhance the use of provisions for road maintenance and other works for gated and guarded housing areas. This includes the replacement of road signs.

Anwar said state authorities should ensure road maintenance projects are awarded to contractors in the G1 to G4 class and not only to large concessionaires.

He also said the NFC meeting agreed to increase the allocation for scheduled pavement maintenance for federal roads from RM750 million to RM1 billion. This would help tackle the issue of potholes, which has contributed to road accidents.

“This additional allocation will be used for the benefit of small Bumiputera contractors,” he said.

Anwar also said the government has agreed to consider progressive payments for borrowings granted to state governments for development projects under the Malaysian Rolling Plan in order to help with cash flow.