Malaysia

Discontentment brews as Sabah Trade Centre tenants are evicted

State industrial development and entrepreneurship minister defends decision, citing safety.

Updated 2 years ago · Published on 01 Feb 2024 5:30PM

Discontentment brews as Sabah Trade Centre tenants are evicted
A check by The Vibes revealed that the doors leading into the Sabah Trade Centre had been locked to keep the former tenants and managing company workers from entering the premises. – JASON SANTOS/The Vibes pic, February 1, 2024

by Jason Santos

A GROUP of entrepreneurs and the interim management company overseeing the Sabah Trade Centre in Kota Kinabalu are voicing their displeasure over the handling of their eviction by the building’s owner, the Sabah Industrial Development and Entrepreneurship Ministry (MIDE).

The tenants were not only given a mere 72 hours to vacate the premises, but they also had their power supply cut off in December, they allege.

To exacerbate matters, the centre has been physically sealed off, denying any access to the facility.

MB Managers & Consultants’ general manager Mohd Iskandar Shah Ali expressed his concern, stating that the state government agency’s actions have adversely affected around forty entrepreneurs and a hundred individuals directly dependent on the facility.

“We have been working together with around 16 local companies in various capacities and over twenty stall hawkers in the parking lot trying to earn an honest wage without putting any financial burden to the Sabah government,” he said.

Iskandar asserted that his company had proposed to take over the management in 2021, claiming he had also received the backing of two senior officers from the MIDE and the state Finance Ministry.

He noted that there was a change in ministers in MIDE, with Datuk Phoong Jin Zhe replacing Datuk Seri Joachim Gunsalam in a state cabinet reshuffle before the eviction.

Iskandar also said that his company should continue managing the centre until the state decides on redevelopment, emphasising the contributions made by local businesses and stall hawkers which have not burdened the state government financially.

The Sabah Trade Centre faced neglect when the initial management company withdrew during the movement control order (MCO) between March 2020 and November 2021.

Talk about redeveloping the centre dates back to 2017, given its prime location boasting 100,000 sq ft across two levels, 400 parking spaces, offices, and a cafeteria, in the Likas area.

However, it is learnt that the centre never obtained the Occupancy Certificate (OC) of fitness since it was completed and officially opened in 1997.

Iskandar claimed that it was not required at the time of its opening.

Minister’s concerns at state of building

In response, Phoong defended the eviction, citing safety as the primary concern due to the absence of an OC.

He asserted that the company had not been given any contract to manage the centre due to the lack of OC, and asked at the same time who should be held responsible in the event of potential accidents.

“It’s not sustainable if I let them continue to run just like that – no OC, building unkempt, maintenance cost high and bad infrastructure. I can understand their frustration.

“But as a responsible government, I don’t think we should let it be as it is,” Phoong said.

“Even though they had done some small efforts, which I appreciate, but let’s be honest. Is it sustainable?

“People will also blame the government if the trade centre as a whole continues to be left an eyesore,” he said.

Phoong disclosed that the state had decided to redevelop the land, and the ministry is currently soliciting proposals for the redevelopment.

“The government has finally decided to take back the land after the cabinet decision, withdrawing its initial decision on selling the land. This means that finally we can do something (over the land) and make it proper,” he said.

Phoong also felt that the ministry should not be held at ransom as the company has been allowed to run the centre without charging a single fee to them for the past two years.

“For the past two years, we had never collected a single sen from them, while they are still collecting night market fees from vendors,” he said. – The Vibes, February 1, 2024

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