a day ago
Sabah Development Bank Berhad's shift to ‘Sabah First' policy paying off
Published on: Friday, June 06, 2025
Published on: Fri, Jun 06, 2025 Text Size: Financing is given to developers within Sabah who bring direct impact to our people,' Chua emphasized. Kota Kinabalu: Early success in Sabah Development Bank (SDB) recovery as reported by The Edge demonstrates a significant shift compared to previous approaches that often disadvantaged the state. 'Since the GRS Government took over the state administration, we have been well aware of the scale of challenges we inherited. Many GLCs and state institutions were in financial decline due to policies that did not prioritise Sabah.
Advertisement 'If Sabah is to continue progressing, the foundation of administration must be fixed — starting with transparency, integrity and policies that are genuinely based on Sabah's interests,' said Star Deputy President Datuk Kenny Chua. The former Assistant Finance Minister said SDB's recovery began in the second half of 2023 through a three-year transformation plan under the new leadership of the Board of Directors and a renewed management team. The Edge reported that SDB had succeeded in reducing its bond obligations from RM5 billion in July 2023 to RM3 billion, while the overall capital ratio rose from 7.9 per cent at the end of 2023 to 19.6 percent by the end of 2024. 'Today, we see very clear results — non-performing loans have been recovered, bond obligations reduced, capital ratios strengthened and, most importantly, the disbursement of loans now truly supports Sabah's development in sectors like water supply, energy, and infrastructure that directly benefit the people of this state.' He said that SDB's current approach is very different from the past. 'SDB no longer channels loans to big tycoons in Peninsular Malaysia who ultimately failed to repay and burden Sabah. Now, our focus is clear — 'Sabah First'. Financing is given to developers within Sabah who bring direct impact to our people,' he emphasized. He said SDB's success marks the beginning of GRS's economic reform agenda. 'What we see at SDB today is only the beginning. Many more reform measures will be introduced. What's important is that our approach is now clear — Sabah First. The absolute priority is projects that truly benefit the people of Sabah. 'I am confident that, in time, the people of Sabah will see and feel the real results of all the plans under the Sabah Maju Jaya 1.0 Development Plan. This is our promise — to continue implementing reforms to build a stronger, more competitive Sabah that is rooted in the interests of its people,' he said. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available.
Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
