The Sabah state government is planning to redevelop Kampung Bahagia into a legally recognised settlement following a devastating fire that destroyed around 1,000 homes and displaced thousands of residents.
Chief Minister of Sabah Datuk Seri Hajiji Noor said detailed implementation plans cannot yet be announced as authorities are still awaiting a full report from the Sandakan District Disaster Management Committee.
He explained that the government is reviewing several proposals, including land reclamation for future housing development, but noted that such plans would require significant funding and careful evaluation by Sandakan Municipal Council.
Hajiji said the proposal to resettle affected residents is still under consideration, with a final decision to be made only after all reports and alternative options are thoroughly assessed.
He added that Kampung Bahagia was originally established as a settlement for refugees approved by the United Nations High Commissioner for Refugees (UNHCR), with most residents previously linked to refugee communities.
According to state figures, more than 70 per cent of those affected by the fire are non-citizens, while the remaining 30 per cent are Malaysian citizens.
In the meantime, the state government has announced immediate financial assistance of RM2,000 per affected household, with RM1,000 contributed by the state government and another RM1,000 from the Sabah Welfare Foundation.
Authorities estimated that about 9,000 people were left homeless after the blaze, which destroyed approximately 1,000 stilt houses in the early hours of the incident, making it one of the most severe urban fire disasters in recent years in Sabah.

