Sabah's Pan Borneo Highway Lags Behind Sarawak Amid Funding and Planning Issues

The Auditor General's 2026 report highlights a stark contrast between the two East Malaysian states on the Pan Borneo Highway. Sarawak has wrapped up ten of its eleven work packages, with the final one nearly finished, thanks in part to early sukuk financing and the use of BIM technology that saved costs and avoided delays. Sabah, however, has only completed four of thirty-five Phase 1 packages, with nine labeled as sick projects, thirteen delayed, and nine ahead of schedule.

Although nearly all of the budget earmarked for Sabah's portion has been expended, the project trails significantly and its completion date has been extended to 2030. Deputy Chief Minister and Works Minister Joachim Gunsalam attributes the setbacks to the termination of the previous delivery model, reliance on annual federal allocations, land-acquisition disputes, and material shortages. The Public Accounts Committee chair warns that a funding shortfall could keep the highway unfinished unless additional money is approved.