Project IC Sabah — What the Royal Commission Found
What was Project IC?
Project IC (Projek IC) is the name given to the alleged issuing of Malaysian identity cards to foreigners in Sabah, so that they would be treated as citizens and could register as voters. The allegations centre on the 1980s and 1990s (Malay Mail, checked 7 October 2026).
The people said to have received identity cards were mainly from the southern Philippines and Indonesia. At the Royal Commission of Inquiry, a former Sabah National Registration Department (NRD) director said identity cards had been issued to Filipino, Indonesian and Pakistani nationals who lacked supporting documents (The Star, 18 January 2013, checked 7 October 2026).
Many Sabahans link Project IC to Point 6 of the 20 Points on immigration, which was meant to give Sabah control over who settles in the state. See our page on the Malaysia Agreement 1963.
When did Project IC happen and who was behind it?
Allegations about Project IC circulated in Sabah for years before the federal government set up a Royal Commission of Inquiry (RCI) on immigrants in Sabah in 2012. Its hearings closed on 20 September 2013 and its report was released on 3 December 2014 (Malay Mail, checked 7 October 2026).
Who was responsible is disputed. Critics alleged that the scheme was directed from the top for political ends. The RCI attributed the illegal issuing of identity cards to former NRD staff and other government officers, and concluded that it was not politically driven but the work of corrupt syndicates acting for money (Malay Mail, checked 7 October 2026). Former Prime Minister Mahathir Mohamad denied knowledge of it (Malay Mail, checked 7 October 2026).
How were identity cards distributed to immigrants?
Much of what is known comes from testimony at the RCI. Datuk Abdul Rauf Sani, Sabah NRD director from 1990 to 1992, testified that about 50,000 identity cards were issued to Muslim Filipino, Indonesian and Pakistani nationals, that the cards were given out without supporting documents such as birth certificates, that a unit of 17 officers processed documents for foreigners, and that about 200,000 birth certificates were issued to foreign nationals. He said he acted without orders from his superiors, and that he knew this would change the make-up of Sabah's voters. He also told the RCI he had been detained under the Internal Security Act for 60 days in 1996 (The Star, 18 January 2013, checked 7 October 2026).
Because the cards were genuine government documents, holders could register to vote and use government services. This is one reason the issue has been hard to unwind after the fact.
What did the Royal Commission of Inquiry find?
The RCI was chaired by Tan Sri Steve Shim Lip Kiong, former Chief Judge of Sabah and Sarawak (Malay Mail, checked 7 October 2026). Its main findings, as reported when the report was released:
| Finding Area | What the RCI Found | Source |
|---|---|---|
| Existence of Projek IC | A probability that Projek IC existed, based on the testimony of five witnesses who were not cross-examined | Malay Mail, 3 December 2014 |
| Who was responsible | Former NRD staff and government officers; corrupt syndicates acting for money; not politically driven | Malay Mail, 3 and 4 December 2014 |
| Population | Foreigners made up nearly 30 per cent of Sabah's 3.12 million people | Malay Mail, 4 December 2014 |
| Electoral roll | Witnesses alleged between 80,620 and at least 200,000 names should not have been on the roll; the Attorney-General said that “the voter registration was clean, after removing ‘many’ names, but that the number was negligible and did not affect results” | Malay Mail, 4 December 2014 |
| Main recommendation | A permanent secretariat to tackle Sabah's illegal immigrant problem | Malay Mail, 4 December 2014 |
Sources: Malay Mail, 3 December 2014; Malay Mail, 4 December 2014, checked 7 October 2026. Critics disputed the conclusions: Anwar Ibrahim, then opposition leader, called the report "farcical" and said the masterminds were "completely off the hook" (Malay Mail, 5 December 2014, as republished, checked 7 October 2026).
How did Project IC change Sabah's population?
Witnesses at the RCI raised concern about a 301% rise in Sabah's population between 1970 and 2000 (The Star, 3 December 2014, checked 7 October 2026). How much of that growth came from identity cards issued irregularly, rather than from natural increase and other migration, has never been officially established.
By the time of the RCI report, foreigners made up nearly 30 per cent of Sabah's population of 3.12 million (Malay Mail, checked 7 October 2026). Many indigenous Sabahans see the issue as a threat to their political voice and identity, which is why it remains one of the most sensitive subjects in the state.
What has been done to address the issue?
After the report, the government announced a management committee, to be headed by an independent professional not involved in politics, and a working committee led by Tan Sri Joseph Pairin Kitingan to act on the findings (Malay Mail, checked 7 October 2026).
Before the RCI, some NRD officers had been detained under the Internal Security Act in the 1990s, including the former Sabah NRD director who testified (The Star, checked 7 October 2026). Critics continue to argue that those who planned the scheme, if it was planned, have not been held to account.
Identity-card verification, clean-up of the electoral roll and enforcement against irregular migrants remain live issues in Sabah politics and in the state's dealings with the federal government.