Kota Kinabalu: The Ministry of Local Government and Housing will determine the party responsible for the PacifiCity project in Likas, following the expiration of its judicial management order.
According to Dato’ Seri Winston Liaw, Deputy Chief Minister II Datuk Seri Dr Joachim Gunsalam has instructed ministry officials to ascertain which party should be accountable for the project.
“The Ministry officials have two weeks to identify and determine the responsible party,” said Liaw, after a courtesy call on Dr Joachim, who is also the Local Government and Housing Minister, at Wisma Innoprise. A view of the PacifiCity project in Likas.
Liaw, along with PacifiCity buyers, foreign investment intermediaries, engineers, consulting companies, lawyer representatives and former Kota Kinabalu Mayor Datuk Yeo Boom Hai, sought assistance from Dr Joachim to resolve the limbo surrounding the project in Likas.
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PacifiCity, a mixed development comprising residential units, shopping arcades and office lots, has faced significant delays over the years. It was, initially, scheduled for completion in 2018 and was touted as a tourist attraction.
However, only the Pacific Heights Condominium has been completed after numerous delays and the buyers have appealed to the authorities to issue the occupancy certificates.
The Kota Kinabalu High Court granted the judicial management order, valid for six months starting from June 9, 2022. With the order now expired, the authorities must determine the party accountable for the project going forward.
“We are grateful to the Minister for meeting with us and providing assistance, guiding us on the next steps.
“We believe the original developer should resume control, and we hope they will cooperate to facilitate the prompt issuance of occupation certificates to the owners, particularly for Pacific Heights Condominiums.
“This will signify that the entire project is still in progress and not abandoned. Additionally, I encourage other investors or white knights to consider taking over this development project,” said Liaw.
Liaw stated that the Minister’s willingness to assist distressed buyers indirectly preserves Sabah’s industry image.
“If such abandoned projects persist in Sabah, I believe it will affect investor confidence in real estate investment in the state,” he said.
He revealed that the latest report from the Sabah Housing and Real Estate Developers Association mentioned that real estate constituted 60 per cent of foreign investment nationwide, while local investment accounted for only 40 per cent.
“Johor, Selangor, and Sarawak attracted the most foreign investment, whereas Sabah didn’t even make it to the top five,” he said.
“Why does Sabah fail to rank among the top five? It is due to the inadequate system and numerous loopholes in real estate development.
Are unscrupulous businessmen exploiting these loopholes for personal gain, leaving investors unprotected and facing various troubles?” he asked.
He again urged the Sabah Government to reform laws concerning real estate development, impose stronger penalties, and ensure that irresponsible developers face substantial fines or mandatory imprisonment.
These measures are believed to be essential for the long-term progress of Sabah’s real estate industry, safeguarding consumer interests, and boosting investor confidence, he said.
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