Sabah Development Bank Bhd has put a number on what it may be willing to give up to get Kota Kinabalu's stalled PacifiCity project moving again: about RM300 million of outstanding exposure is still tied to the development, and the state-owned lender says it is prepared to consider a substantial reduction if a credible rescue plan is brought forward.
The bank's 22 September 2026 statement, reported by Borneo Post, The Star and Sabah Media, does not revive the project by itself. It does, however, change the commercial starting point for any white knight looking at the long-abandoned Likas Bay scheme.
PacifiCity was planned as an integrated waterfront development in Kota Kinabalu with residential units, offices, a mall, hotels and commercial lots. EdgeProp reported that the project spanned 18.5 acres and carried an estimated RM2 billion development value when launched more than two decades ago. The developer, Pacific Sanctuary Holdings Sdn Bhd, later ran into financial difficulty and has since been wound up.
SDB said the project land is charged to the bank as security, but the registered owner is Maksak, the Sabah State Government Servants Welfare and Sports Council. The bank also pointed to a High Court ruling on 31 July 2025 which dismissed claims against SDB and found that the bank was the financier, while responsibility for purchasers' losses rested with the developer.
For buyers, the practical issue is still not blame, but whether anyone can fund completion. SDB said the private liquidator has met purchasers and government agencies and has run several tender exercises to identify potential investors. No firm proposal has been submitted so far, and the bank said the main obstacle remains the large amount of capital needed to restart and finish the development.
That is why the RM300 million figure matters. A lender willing to reduce its claim can make a rescue package easier to price, but SDB said any reduction would depend on a formal and credible proposal. The project remains under court-appointed liquidation, managed by a private liquidator.
The statement followed calls from Tanjung Aru assemblyman Datuk Junz Wong for Sabah's finance leadership to convene the parties involved, including SDB, and for a longer-term monitoring mechanism. Purchaser representatives have also asked the state government to step in after years without a completed handover.
Sources: SDB statement reported by Sabah Media, Borneo Post, The Star, EdgeProp.
