KOTA KINABALU: State-owned Sabah Development Bank (SDB) has reiterated its commitment to reviving the stalled PacifiCity integrated development project, addressing questions raised by buyers over its role in assisting the recovery process.
SDB said it understands the “frustration and hardship” experienced by purchasers due to prolonged delays. However, the bank reassured stakeholders that it remains committed to supporting a “practical, sustainable, and commercially viable” revival of the development.
At the same time, SDB rejected claims by a buyers' group alleging that the bank's own actions were hampering efforts to secure a "white knight" investor and that the court-appointed liquidator had not been paid.
In a statement on Thursday (Sept 24), SDB clarified that the project is currently under the administration of a court-appointed liquidator, whose responsibility is to identify, evaluate, and facilitate potential white knight investors.
The bank added that it had “no knowledge of, nor records relating to, the alleged unpaid fees” cited by the buyers.
“SDB is unable to comment on these allegations in the absence of specific details. Any suggestion that efforts to secure a white knight investor have ceased as a result of such matters is not information known to SDB,” the statement read.
Denying insinuations that it had stalled or obstructed revival efforts, SDB said both the bank and the liquidator have actively conducted tenders and private engagements with interested parties.
“While a number of parties had expressed initial interest, only two submitted preliminary proposals. Following their respective due diligence and assessments of the substantial capital required, both parties ultimately decided not to proceed,” SDB explained.
“If there are other parties with a genuine interest in reviving the project, SDB welcomes the submission of formal proposals for evaluation. Efforts to revive the project remain active.”
SDB revealed that on Sept 14, it received a fresh proposal from an interested party, which is currently under review—underscoring the ongoing commitment of stakeholders to find a viable solution.
Addressing the legal aspects, SDB noted that while it values purchaser concerns, a group of buyers had previously filed legal proceedings seeking compensation for losses. On July 31, 2025, the High Court dismissed those claims, ruling that SDB acted strictly as a project financier, while responsibility for purchaser losses lay with the developer, which has since been wound up.
Consequently, SDB stated it cannot entertain requests to revisit financial compensation claims already adjudicated by the court, emphasizing that it remains guided by judicial findings, the legal framework, and sound commercial considerations.
SDB's statement follows comments made on Wednesday (Sept 23) by buyers' representative Winston Liaw, who argued that the main obstacle was a lack of engagement and progress from SDB rather than a shortage of investors.
Liaw claimed previous investors had approached SDB without success, and alleged that during a meeting with the state Local Government and Housing Ministry, the liquidator complained of unpaid fees. He dismissed SDB's commitment as "purely lip service," claiming the bank regularly declined to meet buyers or participate in ministry-led discussions.
Another buyers' representative, Constance Liew, urged open dialogue, stating that purchasers remain ready to meet SDB and state leaders at any time. She highlighted that continued delays harm all parties—including buyers, SDB as the financier, and the landowner, the Sabah Civil Service Sports and Recreational Council (MAKSAK).
Reaffirming its position, SDB maintained that it will continue working constructively with the liquidator, buyers, government agencies, and other stakeholders to facilitate any credible proposal capable of delivering a sustainable revival.
Launched over a decade ago on prime land fronting Likas Bay, the RM1 billion PacifiCity integrated development has remained stalled due to financial difficulties and operational issues surrounding the developer.
