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PAPAR: The Sabah government is preparing contingency measures, including reviewing project costs and contracts, to address rising prices affecting development projects following the global oil crisis and the ongoing war in the Middle East.

Deputy Chief Minister cum State Finance Minister Datuk Seri Masidi Manjun said the State Cabinet meeting on Wednesday discussed steps to minimise spending while ensuring ongoing projects are not abandoned.

He said increasing costs, particularly for construction materials such as bitumen, have placed pressure on contractors who may struggle to complete projects at previously agreed prices.

Masidi said the government may review contract values if necessary, although this could result in higher expenditure and may require the use of reserves if revenue is insufficient.

He said the government’s priority is to ensure projects, including Pan Borneo Highway works and Rumah SMJ housing, are completed, with the Ministry of Finance compiling a list of affected projects for Cabinet review.