Is Revenue the Only Performance Indicator for a Mayor?

By Kent Lo , 8 June, 2025
Ghost city of strictly rule of laws.

THE MAYOR of Kota Kinabalu's recent approach to governing has stirred considerable unease among local businesses and city residents. It appears the administration's main focus is now on strict enforcement of every by-law, even those previously deemed minor or typically handled with leniency, alongside a heavy emphasis on revenue collection.

This raises a critical question: is financial performance truly the sole measure of good governance?

Impact on Local Businesses and Residents

Businesses and residents are feeling unprecedented pressure. Many enterprises are still struggling to recover from past economic downturns, yet they now face intense enforcement. This includes everything from parking and signboard regulations to hotel room tax compliance.

Compound fines and crackdowns on minor by-law infractions, once handled with discretion, are now commonplace. This stringent approach is leading to higher fines, operational uncertainty, and a growing reluctance for businesses to remain in the city.

Revenue Maximisation vs. Sustainable Growth

The city's focus on maximising revenue could be a short-sighted strategy. As businesses consider scaling back or relocating, the city's overall income will inevitably decline. It's foreseeable that officials might then consider increasing property assessment fees to compensate for this shortfall. 

However, by prioritising revenue, the administration seems to be overlooking the bigger picture. Businesses are already stretched thin, and continuous pressure could drive them to relocate entirely, potentially impacting local employment and discouraging new investment in Kota Kinabalu.

Strict enforcement without understanding or support risks alienating both businesses and residents. Many are already looking into moving to neighbouring municipal councils such as Tuaran, Penampang, and Papar. These areas are perceived as having more balanced enforcement policies and stronger support for economic growth, making them more attractive alternatives.

This contrasts sharply with previous administrations in Kota Kinabalu, where similar infractions were often met with warnings or more gradual corrective measures, creating a sense of partnership with businesses.

Redefining Good Governance

Good leadership is about more than just collecting money or issuing fines. While the Mayor's office might argue this strict enforcement is necessary for urban planning or generating funds for city projects, its immediate impact is felt as punitive rather than supportive.

True indicators of performance should encompass liveability, economic health, community well-being, and the ability to support both businesses and residents. Enforcement and revenue collection should be tools to help a city thrive, not to stifle it.

The businesses and residents of Kota Kinabalu are looking for a mayor who governs with balance and empathy. They want someone who understands that sustainable progress demands more than merely ticking enforcement checklists and raising fees.

Business associations have suggested implementing grace periods for minor by-law compliance, allowing time for adjustments without immediate punitive measures. If financial gain remains the only measure of success, Kota Kinabalu risks losing its vibrancy, economic vitality, and ultimately, its population.

It's time for a rethink on what good governance truly entails. The future of Kota Kinabalu depends on leadership that prioritises people over penalties, growth over fines, and community well-being over collections.