Lim Guan Eng Demands Action Against Zahid Over RM2.1 Billion Rural Development Ministry Overspending

RM2.1 billion more than its approved allocations over three years
Lim Guan Eng cites Finance Ministry figures on the Rural and Regional Development Ministry's spending from 2023 to 2025.
Mark

Start with the number. What exactly is RM2.1 billion here?

Mimi

It's the total excess Lim says the ministry spent beyond approved allocations from 2023 to 2025, based on Finance Ministry figures he cited. Each year ran well above what was approved.

Luke

Worth noting the yearly gaps are RM0.7 billion each, and those add up to RM2.1 billion. That arithmetic holds. But the figures come through Lim's statement, not a published audit we've seen.

Mark

Why does he say it matters beyond this one ministry?

Mimi

He argues it sets a precedent. If one ministry overspends without consequence, others may follow, and that could affect the treasury and financial stability.

Luke

That's a warning about what might happen, not something reported as happening. No other ministry is named as overspending.

Mark

He also asks about contractors. What's behind that?

Mimi

He wants to know who got the projects that drove the excess, and whether they were selected openly and by the rules.

Luke

It's a question, not a finding. Nothing in the reporting says the selection was improper.

Mark

And the support letters?

Mimi

He says only the Finance Ministry can issue them, since they can act as hidden guarantees, and he points to earlier action over a Transport Ministry letter.

Luke

He doesn't claim Zahid's ministry issued one. And we haven't heard from Zahid at all, so why the spending exceeded allocations is still unanswered.

  • A statement from an opposition-aligned voice has put a RM2.1 billion overspend squarely in front of the public, and the figures are already in circulation.
  • Spending in the ministry climbed each year, with 2025 showing the widest gap between what was approved and what was actually spent.
  • The call for enforcement puts pressure on authorities to decide whether financial procedures apply equally to a sitting Deputy Prime Minister.
  • Questions about which contractors won the projects are being raised, and the answers have yet to surface from the ministry or Zahid himself.
  • The matter is still open, with the next moves hinging on whether an official explanation or enforcement step follows the accusation.

Across the long ledger of a nation's public money, there is a recurring moment when the numbers stop agreeing with the promises made about them. On September 4, Bagan MP Lim Guan Eng pressed that moment into public view, arguing that the Rural and Regional Development Ministry, under Deputy Prime Minister Ahmad Zahid Hamidi, spent about RM2.1 billion more than Parliament had approved across 2023 to 2025. He framed the excess as more than bookkeeping: a question of whether the discipline that governs the treasury still binds those who hold power, and whether it will be enforced.

On September 4, DAP's Bagan MP Lim Guan Eng issued a statement calling for action against Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi and the Rural and Regional Development Ministry. His case rests on figures he attributed to the Finance Ministry, which show the ministry spending RM2.1 billion beyond its approved allocations over three years.

According to those figures, the ministry spent RM1.8 billion in 2023 against RM1.1 billion approved, RM2 billion in 2024 against RM1.3 billion, and RM2.3 billion in 2025 against RM1.6 billion. Lim argued that such overspending was not seen before 2023 and that it breached financial procedures, possibly exposing the ministry to enforcement under the relevant laws. He warned that if other ministries followed the same path, the national treasury and financial stability could suffer.

Lim also asked who benefited, pressing for details on which contractors received the projects and whether they were selected through a transparent and accountable process. He further criticised restrictions on support letters, noting that only the Finance Ministry may issue such guarantees under the financial laws, and pointed to earlier action taken over a Transport Ministry letter as precedent.

As deputy prime minister, Lim said, Zahid should lead by example and explain fully why the ministry exceeded its allocations. The account so far rests on Lim's statement and his citation of the figures. What comes next is whether the authorities act on his call and whether Zahid or the ministry offers a public explanation.

On September 4, DAP's Bagan MP Lim Guan Eng issued a statement calling for action against Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi and the Rural and Regional Development Ministry. His reason was a set of figures showing the ministry spent RM2.1 billion more than its approved allocations over three years.

Lim said he drew the numbers from the Finance Ministry. In 2023, the ministry spent RM1.8 billion against an approved allocation of RM1.1 billion. In 2024, spending rose to RM2 billion against RM1.3 billion allocated. In 2025, it spent RM2.3 billion against RM1.6 billion. Lim put the total excess for 2023 to 2025 at RM2.1 billion, a period in which the ministry was under Zahid's leadership.

Lim called the sum significant and said similar overspending had not been an issue in the years before 2023. He described Zahid's actions as irresponsible and said they breached existing financial procedures, which he argued could lead to enforcement under the relevant laws. In his words, what Zahid had done directly threatens financial security and economic stability.

His concern extended beyond one ministry. Lim said allowing spending past approved allocations could set a bad precedent, with other ministries potentially repeating the practice in ways that could affect the national treasury and financial stability. He asked readers to consider what would follow if every ministry were allowed to spend freely without weighing whether the country could afford it.

He also raised questions about who benefited. Lim asked which contractors received the Rural and Regional Development Ministry projects that pushed spending beyond allocations, and whether they were chosen according to regulations through a transparent, open and accountable process.

Lim then turned to the government's restrictions on support letters issued by ministries other than the Finance Ministry. He said such letters could amount to hidden government guarantees, and that under the country's financial laws only the Finance Ministry may issue support letters or guarantees. He cited previous action taken over a support letter issued by the Transport Ministry without its approval as a comparison.

As deputy prime minister, Lim said, Zahid should set an example of prudent spending and explain fully to Malaysians why the ministry exceeded its approved allocations.

The account rests on Lim's statement and the Finance Ministry figures as he cited them. What to watch is whether the authorities respond to his call for enforcement, and whether Zahid or the ministry publicly explains the excess spending.

What Ahmad Zahid Hamidi has done directly threatens financial security and economic stability.
— Lim Guan Eng, DAP Bagan MP
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