If you are one of the buyers waiting on PacifiCity, the Sabah government's latest message is direct: it can coordinate, but it is not promising a public bailout.
Deputy Chief Minister II Datuk Seri Masidi Manjun, who is also Sabah Finance Minister, said the state government cannot bail out the abandoned project because public money is governed by legal and policy limits. He told reporters on Thursday, 24 September 2026, that the state Cabinet has agreed for the Local Government and Housing Ministry to coordinate a meeting with relevant stakeholders, including potential investors.
That is the new point after the earlier PacifiCity update: the state is keeping the rescue process alive, but buyers should not read that as a direct state-funded rescue.
The numbers remain heavy. Masidi said Sabah Development Bank was owed nearly RM300,000,000 by the developer, which is now under court-ordered liquidation. He also said the bank is prepared to absorb a haircut of up to 50% on the debt if that helps make a credible white-knight proposal viable.
EdgeProp reported separately that SDB and the private liquidator received a fresh proposal on 14 September 2026 from an interested party, and that the proposal is under review. SDB said it remains committed to working with the private liquidator, purchasers, government agencies and other stakeholders on a sustainable revival of the project.
PacifiCity is not a small delayed block. The integrated development fronts Likas Bay in Kota Kinabalu and was planned with residential units, office space, a shopping mall, hotels and commercial lots. The Star reported the project at RM1,000,000,000, while EdgeProp described it as a RM2,000,000,000 development spanning 18.5 acres. Given that difference, the safer point is that it is a large mixed-use project whose revival still depends on an investor with enough capital and credentials to finish the job.
For buyers, the practical position is uncomfortable but clearer than before:
- The state says it will help coordinate within the law.
- SDB says it is a financier, not the developer.
- A fresh proposal exists, but has not been accepted.
- No public bailout has been promised.
Sources: The Star, EdgeProp, Borneo Post.
