KOTA KINABALU: The Federal Government will prioritise enhancing the implementation of development projects in Sabah next year to ensure more projects, particularly those involving public infrastructure, are completed, said Deputy Prime Minister Datuk Seri Fadillah Yusof.
He explained that this focus is necessary as project implementation in the state faces various challenges and constraints, thus preventing the people from fully benefiting, even though Sabah receives the largest allocation among states in the national annual budget.
“For example, RM6.6 billion was allocated for Sabah in Budget 2024, but sometimes only RM4.5 billion or RM4.6 billion is utilised. Therefore, we aim to ensure that approved allocations lead to the smooth execution of projects so that they are completed—not just to boost Sabah’s economy but, more importantly, to improve public amenities.
“We will closely monitor and address any issues, including land matters, the Federal Government and the Sabah government will work together to minimise these problems and facilitate project implementation,” he told a press conference here today.
Earlier, Fadillah, representing the Federal Government through the Ministry of Energy Transition and Water Transformation (PETRA), handed over six completed projects worth RM65.5 million to Sabah Deputy Chief Minister I Datuk Seri Dr Jeffrey Kitingan, who represented Sabah Chief Minister Datuk Seri Hajiji Noor.
Budget 2024 allocated RM6.6 billion for development in Sabah and was increased to RM6.7 billion in Budget 2025.
Fadillah, who is also Minister of Energy Transition and Water Transformation, said that while there is no specific target for completed projects next year, all stakeholders are urged to minimise project delays and maximise the number of completed projects.
When asked about challenges in implementing projects in Sabah, Fadillah highlighted issues such as unsuitable or unavailable land, land located in flood-prone areas, and problems with contractors.
“The biggest issue lies with contractors. They face challenges in terms of finances, planning, and expertise. There is also a shortage of materials—sometimes even a lack of cement—and we also face a shortage of skilled labour, engineers, professionals, semi-professionals and general workers.
“Projects in Sabah that are problematic include rural water supply, basic infrastructure, rural roads, and schools. Some issues are manageable and solvable, but certain contractors are beyond help due to lack of capability, leading to incomplete projects,” he said.
Fadillah added that when projects cannot be completed and require the appointment of new contractors, additional costs arise, leaving the original allocation insufficient, while securing new funding takes longer.
“There are 17 delayed or ‘sick’ projects in Sabah, while 420 projects are in the pre-implementation phase. Of the 420, some have started but have yet to update their reports. Through coordination meetings, we can update their statuses. For instance, we now know which projects have begun on-site, are out for tender, or are under evaluation,” he said.
