Economic Planning Unit (EPU) of the Prime Minister's Department today said that the RM2 billion Penang Monorail and RM1.5 billion Penang Outer Ring Road have been shelved.

According to EPU director-general Dr Sulaiman Mahbob, projects that are not people-centred under the original Ninth Malaysia Plan (9MP) will be put on hold or deferred.

He confirmed to reporters at the Parliament lobby today that the two projects have been deferred.

penang outer ring road project 250608 "They have been deferred because the priority is given to the people-centred project," Sulaiman said when met after the tabling of the 9MP mid-term review report by Prime Minister Abdullah Ahmad Badawi at the Dewan Rakyat.

The EPU director-general however said the two Penang-based mega projects were among a number of projects slated to be deferred under the 9MP mid-term review.

"(They are) among those, there are many, many more," he said, without elaborating.

Other projects affected include the building of memorials under the Ministry of Unity, Culture, Arts and Heritage, according to national news agency Bernama .

Sulaiman was asked to confirm the deferment of the two projects as Abdullah in his speech earlier has vowed to continue to all development projects under the 9MP in all states.

‘Deferred, not cancelled'

Met later, Deputy Prime Minister Najib Abdul Razak said the deferment of the two Penang mega-projects was not a punishment on Penangites who voted in the opposition-led state government.

najib altantuya murder case allegations pc 250608 "(There is) no question of punishing anyone because (other) essential projects continue to be implemented whether the states are run by Barisan Nasional or not," he told a press conference held at the lobby.

Asked whether the state government can proceed with the two projects if it could raise funds on its own, Najib said there were two issues that need to be looked at first.

"It is subject to the (federal) constitution because you have to decide if it is under the (jurisdiction) of the state list or the federal list. Secondly, if the states have to borrow (loan), they still need permission from the federal government," he said.

On the projects to be deferred, Najib said they might be revived when "the situation allows".

penang monorail 250608 "We are forced to defer some of the projects after a re-evaluation. For the projects which have been deferred, it doesn't mean they have been cancelled. These projects can be implemented when the situation allows," he said.

The deputy premier was uncertain how much the government would save from the deferred projects.

Najib, when asked on the source for the extra RM30 billion that the government was seeking under the 9MP, said part of it would be taken from the restructuring of the fuel subsidies.

He also did not rule out seeking external loans.

People-centred projects

Earlier today, Abdullah has stressed that the federal government will continue to implement development projects in all states.

abdullah ahmad badawi and mid term review of the 9th malaysia plan 2006 to 2010 "Development projects under the Ninth Malaysia Plan (9MP) are planned and implemented to improve the prosperity of the people and develop the national economy.

"I would like to emphasise that the federal government will continue to implement the Ninth Malaysia Plan development project in all states.

"Priority will be given to people centric-projects - projects which provide basis amenities and which impart direct benefit to the people, such as water supply, electricity, health facilities, education, low-cost public housing, poverty eradication and public safety," he said today.

The prime minister, who is also finance minister, said this in his speech when tabling the mid-term review of the 9MP in a packed Dewan Rakyat this morning.

RM30 bil extra for 9MP

Abdullah however did not make any announcement on the shelving of the Penang monorail and Penang Outer Ring Road projects in his speech.

Neither did he mention about setting aside any allocations for these two projects.

In the original plan, which was launched in 2006, the two projects were among those which the government had promised to implement in order to reduce traffic congestion.

Another Penang project, the second bridge, will however go ahead as this will be privately financed.

Meanwhile, Abdullah also proposed the development allocation for the 9MP to be boosted by RM30 billion to RM230 billion.

"This increase is required in order to cater for the rising cost of implementing existing projects as a result of the rising prices of building materials, as well as to account for new priorities such as the regional corridor developments and adequate food production for the nation," he explained.