New Committee to Assess State Public-Private Partnership and Concession Projects

21 January 2026

KOTA KINABALU: The State Cabinet has endorsed the establishment of the State Public-Private Partnership and Concession Project Management Committee, Chief Minister Datuk Seri Panglima Hajiji Noor announced today.

Hajiji said the new committee will replace the State Privatisation Committee, which was formed in 1991.

“The new committee will assess three categories of projects, unlike the previous committee, which only evaluated projects from a privatisation perspective,” he said.

Under the new framework, he explained that any public-private partnership proposal must first be initiated by the relevant ministry before being referred to the committee’s Technical Committee, chaired by the State Economic Planning Unit.

Once a project is deemed viable, it will be submitted to the Main Committee, chaired by the State Secretary, for further evaluation before being presented to the Cabinet for final approval.

“This is to ensure, among other things, the accuracy of the project scope involving the State Government and the private sector, such as water and road concessions or housing projects,” he said.

“All joint ventures involving the State must now undergo this committee’s review process,” Hajiji added.

Speaking while chairing the first Chief Minister’s Department post-Cabinet meeting following the formation of the new state government at Menara Kinabalu here today, Hajiji also announced that the State Cabinet had approved additional criteria and enhancements to the Rumah Mesra Sabah Maju Jaya (SMJ) initiative this year.

He said the cost of one unit of an SMJ house with pillars has been increased to RM95,000, while the cost of an SMJ house without pillars has been raised to RM85,000 per unit.

The increase, he explained, is to accommodate additional expenses such as transportation of building materials, land reclamation at construction sites, and the installation of electricity poles and water pipes.

Hajiji also announced that the Hala Tuju Sabah Maju Jaya (SMJ) 2.0 Development Plan for 2026–2030 will be launched on 30 January in conjunction with the Chief Minister’s Keynote Address to the state public service, government-linked companies and statutory bodies.

More than 7,000 personnel are expected to attend the event.