State Assembly Sitting: Enhancing MPS Tower for Economic Growth

15 April 2025

KOTA KINABALU: MPS Tower, an eleven-storey building owned by the Sandakan Municipal Council (MPS), located in the heart of Sandakan's central business district, has a strategic potential as a catalyst for economic growth in the region.

Assistant Minister of Local Government and Housing Datuk Isnin Aliasnih said this in reply to Datuk Poon Ming Fung @ Frankie (Tanjong Papat) who questioned the State Government on its plans to enhance the MPS Tower and transform it into a productive asset to attract more economic activity.

Isnin acknowledged the significance of the tower, outlining several initiatives that have been and will be implemented to strengthen its utility.

He stated that MPS is actively exploring more effective asset management models, including the Lease Model and Public-Private Partnership (PPP). These approaches aim to maximise the use of the building's space and position it as a long-term economic centre that attracts private investment.

To enhance the building's commercial appeal, MPS will offer competitive leasing packages to corporate entities and investors, positioning the MPS Tower as a key commercial hub. Additionally, the Ministry plans to foster collaborations with the private sector to develop more attractive facilities and services within the building.

In tandem with these efforts, the MPS is prioritising upgrades to essential infrastructure. This includes improvements to drainage systems, the installation of CCTV for enhanced security, and the enhancement of lighting in and around the Sandakan Central Business District, encompassing the area surrounding the MPS Tower.

Isnin also elaborated that beyond rental income from the MPS Tower, the Council is exploring additional revenue streams, including advertising rights for billboard spaces on the building. This initiative is aimed at generating supplementary income to support MPS's financial sustainability.

He expressed optimism regarding the efforts of MPS, particularly under the leadership of the new President and the commitment of the management team. He believes these strategic initiatives will empower the MPS Tower as a productive asset, increase occupancy rates, attract further economic activity, and ensure that the building yields optimal returns for MPS. Collectively, these measures are anticipated to play a vital role in revitalising the Sandakan city centre as a Central Business District (CBD), fostering a more dynamic and competitive economic environment for the community.