KOTA KINABALU: 22 July 2026 – Warisan Party President, Datuk Seri Mohd Shafie Apdal, has questioned a RM700 million transaction involving Sabah International Petroleum (SIP) and Sabah Maju Jaya Energy (SMJ Energy). He also raised several issues concerning the financial management of Sabah Development Bank (SDB).
According to Shafie, the acquisition of SIP by SMJ Energy was financed through a RM900 million sukuk (Islamic bond) loan. Some RM700 million of that amount was used to acquire SIP, which was previously a wholly-owned subsidiary of SDB.
He made these remarks during a press conference following the Sabah State Legislative Assembly sitting on Wednesday.
Shafie explained that the ownership transfer raised questions because both companies involved are owned by the state government.
“Why was SIP’s ownership transferred to Sabah Maju Jaya Energy when it is a subsidiary of Sabah Development Bank?” he asked.
He said the matter was difficult to comprehend because SIP continues to operate well and remains profitable.
“SIP is a performing GLC… but why was it transferred to Sabah Maju Jaya Energy?”
Shafie also linked the matter to the additional RM200 million allocation approved for SDB through the Supplementary Supply Bill 2026, which was passed during the state assembly sitting.
Although the government explained that the funds were placed in Redeemable Preference Shares (RPS) that can be redeemed at any time, the move still raises questions about the financial position of the state-owned bank.
“There is a serious problem in Sabah Development Bank,” he said.
Shafie claimed that the previous administration had also utilised the RM900 million loan, with RM700 million of that amount used to acquire SIP.
He said the transaction involves state-owned companies and the use of public funds. As such, the government needs to provide a more detailed explanation.
Shafie also alleged that SDB has non-performing loans amounting to approximately RM5 billion. He said the matter had previously been raised with the Auditor-General.
“Why not enforce? Why are these non-performing loans not being pursued? That money belongs to us,” he stressed.
He said the government should focus on recovering outstanding loans from related companies, rather than continuing to channel new funds.
“Let’s be transparent. Use the available funds for the people’s needs.”
Shafie insisted that the government must explain the rationale for using public funds in transactions between state-owned companies. He also wants to ensure that every financial decision is made transparently.
“I don’t want another incident… do not use the people’s money to bail out GLCs facing financial problems,” he said.
Shafie expressed hope that the state government would strengthen financial governance and ensure that every use of public money is accounted for. This is especially important as Sabah faces various development needs and economic challenges.
Sabah International Petroleum (SIP) was previously a wholly-owned subsidiary of Sabah Development Bank (SDB). The ownership transfer to SMJ Energy took place this year.
The state government had previously approved an additional RM200 million allocation for SDB under the Supplementary Supply Bill 2026.
The Auditor-General’s Department had previously been informed about the issue of SDB’s non-performing loans, which are alleged to have reached RM5 billion.
