Chief Minister Datuk Seri Musa Aman said this was imperative as the Government was facing challenges in controlling expenditure and boosting revenue.
"In the context of management and implementation of development projects, all implementing departments and agencies must ensure value for money always as the benchmark in making decision," he said.
The practice of giving too many extensions of time to development projects must be avoided and all problems relating to the projects must be addressed quickly in the early stages.
"This is to ensure that development projects will be completed and delivered according to schedule for the benefit of the people," he said, after chairing the first State Economic Action Council meeting for this year at Wisma Innoprise, Wednesday.
Musa, who is also State Finance Minister, commended the Sabah Development Office that Sabah and all district offices for successfully implementing 100 per cent of the small Federal projects under the Public Infrastructures Maintenance (PIA) programme and Basic Infrastructures Maintenance (PIAS) programme last year.
On another note, Musa said it was important for the implementing agencies to meet a development project completion deadline. Projects that did not meet the deadline or with the characteristic of being open ended projects would end up more expensive and have a higher risk of failing, he said.
The Chief Minister also called on the implementing agencies to have more confidence in carrying out projects.
For instance, if there was a delay in the decision-making or arrival of funds at the federal level, the implementing agency must be proactive in making follow-up action immediately so that the project would not meet a dead end, he said.
"The agencies concerned must be more aggressive with no hesitation in getting feedback so that the project will be able to be completed for the people," he said.