Poverty eradication project is an effort by the Sabah government to help the poor. This effort is multifaceted, first; to eradicate poverty and second to raise per capita income of the rural community so that Malaysia can achieve the Vision 2020 with zero hardcore poor. The prerequisite for this objective that can be achieved is to have a good and reliable delivery system of the poverty eradication programme. The aim of this paper is to explore respondents’ perception particularly the hardcore poor towards government project delivery system in Kudat. The study found that, overall; respondents’ perceptions towards the delivery system of poverty eradication projects in the three areas are positive and encouraging. In addition majority of the respondents also agree that poverty eradication projects have benefited them. They also perceived that poverty eradication projects tend to provide new job opportunities for the rural population and increase income for project participants. However there are limitations to this study particularly in terms of the areas covered. The results cannot be generalized to all regions or districts in Sabah due to several reasons such as different demography, characteristics, ethnic groups and so forth.