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In recent years, businesses have shifted their operations away from the town centre to the suburbs (Bandar Ramai-Ramai, Bandar Leila, Bandar Nam Tung, Bandar Maju, Bandar Kim Fung, Bandar Pasaraya, Bandar Letat, Bandar Indah Jaya, Bandar Utama, Bandar Perdana, Bandar Labuk Jaya, Bandar Sibuga Jaya, etc.) due to the presence of significant illegal immigrants in the town centre. In January 2003, the Sandakan Harbour Square, an urban renewal project, was launched in an attempt to revive the town centre as the commercial hub in Sandakan. It will feature extra shoplots, a new central market and fish market, a shopping mall (Sandakan Harbour Mall), and hotels. It is to be built in four separate phases and is due for completion in 2011.

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