What financial criteria does SALIC use for approving state agency investments?

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State Agencies' Loan and Investment Committee Utilises Comprehensive Financial and Strategic Criteria for Approvals

The State Agencies’ Loan and Investment Committee (SALIC) evaluates proposals for state agency investments by assessing a range of factors including investment needs, project viability, financial projections, and associated risks. Beyond these financial considerations, the committee also scrutinises due diligence, governance structures, and the proposal's alignment with Sabah’s broader strategic interests before making recommendations.
Assessment of Investment Needs and Project Viability

SALIC examines the specific investment requirements of each proposal to ensure they are justified and necessary. Concurrently, the committee rigorously assesses the viability of the proposed projects, seeking to confirm that they are likely to succeed and achieve their intended objectives. This involves understanding the core business case and the project's potential for sustainable operation.
Scrutiny of Financial Projections and Risk Management

Detailed financial projections form a critical part of SALIC's evaluation, allowing the committee to forecast potential returns and the overall financial health of the investment. Alongside these projections, a thorough assessment of the inherent risks is conducted. This risk assessment aims to identify potential challenges and determine the level of risk the state is prepared to undertake.
Due Diligence and Governance Standards

Before any approval, SALIC mandates comprehensive due diligence to verify the information provided and ensure the integrity of the proposal. Furthermore, the committee evaluates the governance frameworks of the organisations seeking investment, confirming that robust management and oversight structures are in place. This ensures accountability and responsible stewardship of state resources.
Alignment with Sabah's Strategic Interests

A key consideration for SALIC is the extent to which each investment proposal aligns with Sabah’s overarching strategic objectives. This ensures that all state-backed investments contribute to the state's development goals and enhance its economic or social welfare. Proposals are assessed on their potential to foster growth, create employment, or improve public services within Sabah.

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What financial criteria does SALIC use for approving state agency investments?

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