Auditor General flags major delays and governance issues in Sabah highway project
An audit reveals that only four of the 35 work packages for Sabah's Pan Borneo Highway have been finished since 2015, while many remain stalled and some face governance concerns.
According to the Auditor General's Report 2/2026, only four of the 35 work packages in Phase 1 of Sabah's Pan Borneo Highway have been completed since the project began in 2015, representing a modest share of the total 706-km stretch and an original cost of RM567 million. The remaining 31 packages, valued at billions of ringgit, are still in progress, with nine labeled as sick projects, 13 delayed, and nine on schedule.
The audit raised concerns over governance, noting variation orders that surpassed authorized limits and outstanding utility relocation claims amounting to RM41.37 million. Meanwhile, Sarawak's counterpart has ten fully finished packages and one nearly complete, yet still contends with uncollected utility relocation claims of RM1.78 billion and a RM32.07 million project information system that became inaccessible after the contract ended. The report underscores inefficiencies in contract administration and financial oversight across both state segments.
Why it matters
The findings reveal significant delays and financial mismanagement in a major infrastructure project affecting regional connectivity.
How the sides frame it
HIGH AGREEMENTBoth centrist and right-leaning coverage report the Auditor General’s findings of extensive delays and governance problems in the Sabah Pan Borneo Highway, but the right-leaning outlets add characterisations such as “sick projects” and note the modest share of work completed.
CENTER
Centrist coverage emphasizes the audit’s identification of extensive delays, unpaid compensation and governance shortcomings in the Sabah segment of the Pan Borneo Highway.
RIGHT
Right-leaning coverage stresses the magnitude of unfinished work, labels many packages as sick or delayed, and underscores governance concerns.
The right emphasises
- only four of 35 work packages completed
- nine packages labelled sick, 13 delayed, and nine on schedule
- governance concerns over variation orders and outstanding utility relocation claims
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