KUALA LUMPUR, Nov 4 — The long-standing debate over Malaysia’s regional development imbalance resurfaced in Parliament when Tumpat MP Dato’ Mumtaz Md Nawi questioned why the East Coast continues to lag behind states like Penang in infrastructure investment.
Raising the issue during a Dewan Rakyat session, she pressed the government to explain its criteria for deciding whether highway projects are directly government-funded or awarded to private concessionaires.
“If Penang can receive RM17.8 billion, surely some allocation can go to Kelantan, Terengganu, and Pahang as well. Both regions deserve equal attention — they are part of the same family,” she said.
Deputy Works Minister Datuk Seri Ahmad Maslan responded that fiscal capacity remains the core consideration in project implementation, emphasizing that privatisation becomes necessary when public funds are insufficient.
“When the government has funds, projects are carried out directly. But when fiscal space tightens, privatisation is the only way forward,” he explained, citing LPT-1 and LPT-2 as examples of earlier government-funded projects.
He added that the Fiscal Responsibility Act (FRA) now obliges the government to manage spending more prudently and reduce its deficit, meaning new infrastructure projects such as LPT-3 must rely on public-private partnerships — and will therefore include tolls.
Analysts view this as a microcosm of Malaysia’s enduring regional inequality, where the West Coast continues to attract disproportionate investment, while the East Coast depends heavily on federal allocations.
The East Coast’s weaker connectivity and limited industrial diversification have long hindered its economic competitiveness, despite being rich in natural resources.
Mumtaz’s call, though political in tone, reflects a broader policy question: can Malaysia pursue fiscal discipline under the FRA without sidelining less-developed regions?