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KOTA KINABALU: The proposed Tungku Commercial Centre in Lahad Datu has been terminated after the developer failed to meet key agreement conditions.

Assistant Local Government and Housing Minister Maijol Mahap said the joint venture between the Housing and Urban Development Board (LPPB) and Menara Gading Sdn Bhd, signed in October 2021, faced delays due to unmet obligations by the developer.

Despite the development plan being approved in June 2024, LPPB moved to terminate the agreement in September 2024 after continued non-compliance.

Although the developer was granted a deferment and extension, it still failed to resolve the issues.

The termination was formally enforced in February 2025.

LPPB is now seeking new qualified developers to take over the project.