Sabah Pan Borneo Highway faces RM1 billion cost increase and major delays

An Auditor-General’s report tabled in the Dewan Rakyat has revealed significant delays and cost increases regarding the Sabah section of the Pan Borneo Highway. Originally scheduled for completion by late 2021, the project remains largely unfinished, with 88% of the work still in progress.

As of March 2026, only four of the 35 work packages have been completed. The remaining 31 packages, valued at RM16.319 billion, are still under implementation, with nine classified as sick projects and 13 behind schedule. These delays have contributed to a cost increase of approximately RM1 billion, raising the overall contract cost from RM17.91 billion to RM18.96 billion. The report noted that Phase 1A costs have exceeded the original ceiling by RM0.987 billion.

During the parliamentary debate, MP Isnaraissah Munirah Majilis questioned the management of the project, specifically noting that only seven land valuation officers were assigned to survey the 706km corridor. She highlighted that 12 private valuation firms were only appointed in December 2025, despite the project commencing in 2015. The audit cited several causes for the delays, including utility relocation, design changes, project site unavailability, and weaknesses in planning, monitoring, and governance.