Also present were Domestic Trade and Costs of Living Minister Datuk Armizan Mohd Ali, who is Papar Member of Parliament, and Sabah Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe.

According to Nga, local authorities receiving a green light will be recognised for high performance and qualify for additional funding.

The yellow light category will receive a warning, with their funding allocations subject to review, while local councils classified under the red light will face potential cuts in funding and may have their future financial requests rejected, he said.

Nga said local authorities that fall short of their Key Performance Indicators (KPIs) would not be left behind, and the ministry will engage with underperforming local authorities to identify the root causes and work together to address the issues.

He also said it was important for local authorities to adhere to strict Standard Operating Procedures (SOPs) to ensure the viability of projects.

"Local authorities will be required to conduct feasibility studies and perform cost-benefit analyses for all projects. This will prevent inefficient projects and optimise expenditure for maximum benefit," he added.

Meanwhile, Nga said the ministry had approved an allocation of RM13.2 million for public infrastructure and socio-economic development projects in Papar and Kimanis to improve the quality of life of the residents.

"The RM13.2 million allocation will fund the development and upgrading of various public facilities, including roads, drainage systems, and housing. We are committed to improving public amenities, ensuring better living conditions for the people of Papar and Kimanis," Nga said.