The Kudat-Banggi PCA further received recognition from the Government of Sabah when the Sabah State Cabinet approved the intention by the Sabah Parks Board to gazette the area as a park (Daily Express, 2003). Initially called the North Borneo Marine Managed Area, the area was subsequently renamed as the proposed Tun Mustapha Park, in recognition of the late Tun Mustapha, a local hero and one of the leaders from Sabah involved in the formation of the federation of Malaysia in 1963.
The proposed Tun Mustapha Park is proposed to be a multiple use park (Category VI, IUCN ). The proposed Tun Mustapha Park is proposed to achieve three objectives (Jumin et al. 2008):
- To conserve marine biodiversity in mangrove forests, coral reefs, and coastal waters,
- Enable sustainable development of traditional and commercial fisheries, and aquaculture (cage-culture and seaweed culture), and
- Alleviate poverty of coastal villagers in the area.