Close to two years since its announcement, Sabah’s RM320 million federal loan for water infrastructure remains untouched and held up by bureaucratic delays. 

The state government has already received the money, but no projects have moved forward.

Sabah Finance Minister Datuk Seri Masidi Manjun confirmed on Wednesday that the funds—initially thought to be aid but later revealed as a soft loan—were received at the end of 2024.

”According to the ministry’s permanent secretary, the Sabah government had received the RM300 million at the end of last year,” said Masidi, while citing the funds were only for RM300 million as opposed to RM320.25 million announced initially. 

His statement follows Kota Belud MP Isnaraissah Munirah Majilis’ remarks in the Dewan Rakyat on February 14, where she flagged concerns that the money remained undisbursed, stalling critical water projects.

The funding was announced on June 1, 2023, by Chief Minister Datuk Seri Hajiji Noor following discussions with Prime Minister Datuk Seri Anwar Ibrahim. 

The RM320.25 million was meant for six short-term measures, covering 20 projects in Kota Kinabalu, Tuaran, Putatan, Papar, Beaufort, Keningau, Tawau, Lahad Datu, and Sandakan.

Masidi said the state Water Department would be submitting the tender documents for approval this week and will be discussed at an upcoming meeting.

In Parliament last week, Munirah sought an update, noting that Treasury approval for the projects is only expected by mid-2025. 

She also pointed out that the funding amount had been reduced, with RM100 million being new funding and RM200 million already allocated under the 12th Malaysia Plan.

Sabah Public Works Minister Datuk Shahelmy Yahya, who oversees the projects, previously acknowledged multiple delays in releasing the funds. 

Tenders were initially called on February 24 last year, but in July, Shahelmy cited bureaucratic hurdles—including value assessments and project adjustments—as reasons for the prolonged delays. – February 19, 2025