Malaysia's Works Ministry cites procurement changes and pandemic for Sabah Highway delays

Works Minister Alexander Nanta Linggi attributed the slowdown of Sabah’s Phase 1 Pan Borneo Highway to several factors, including the 2019 termination of the Project Delivery Partner model, which required a fresh procurement round before 15 contractors were appointed in 2021. Additional setbacks arose from the COVID-19 pandemic, difficulties in land acquisition and utility relocation, and uneven contractor performance.

The 2026 Auditor-General’s report identified 13 issues such as project delays, cost escalations, planning gaps and regulatory non-compliance. By 25 August, only four of the 35 work packages had been completed, with overall physical progress at 89.01 % for Phase 1A, 37.58 % for WP09 and 23.96 % for Phase 1B. Cost increases for Phase 1A were driven by project extensions, scope alterations, higher contract prices and unresolved land or utility problems, though site readiness now exceeds 96 % in most sections. To improve oversight, the ministry directed officials to attend contract-management courses with CIDB and CREaTE and reinforced the Sabah LPB Steering Committee’s monitoring role, with Chief Minister Hajiji Noor suggesting joint chairmanship by the Works Ministry secretary-general and the Sabah state secretary.