What criteria does SALIC use to evaluate state agency investment proposals?

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SALIC Utilises a Comprehensive Framework for Evaluating Investment Proposals

The State Agencies’ Loan and Investment Committee (SALIC) employs a rigorous evaluation process for investment proposals submitted by state agencies. This process is designed to ensure that all investments align with Sabah's broader strategic objectives and are financially sound. Key considerations include the fundamental investment needs of the proposal, its overall project viability, and detailed financial projections to ascertain potential returns and sustainability.
Assessment of Financial Viability and Risk

A core component of SALIC's evaluation centres on the financial health and projected performance of investment proposals. This involves a thorough assessment of financial projections to understand the expected profitability and cash flow of the initiative. Equally important is the meticulous evaluation of associated risks, ensuring that potential downsides are identified and understood before any commitment is made.
Due Diligence and Governance Standards

Beyond financial metrics, SALIC places significant emphasis on the process of due diligence. This entails a comprehensive investigation into all aspects of the proposal to verify information and identify any potential issues. Furthermore, the committee scrutinises the governance structures of the entities seeking investment, ensuring that robust management practices and accountability mechanisms are in place.
Alignment with Sabah's Strategic Interests

Ultimately, SALIC's evaluations are guided by the principle of alignment with Sabah’s strategic interests. Proposals are assessed to determine how effectively they contribute to the state's long-term development goals and economic priorities. This ensures that all state-linked investments serve a clear purpose and offer tangible benefits to the region.

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What criteria does SALIC use to evaluate state agency investment proposals?

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