Sabah Pan Borneo Highway project delays and costs

An Auditor-General’s report revealed that the Sabah section of the Pan Borneo Highway has faced significant delays and a cost increase of approximately RM1 billion. Originally intended for completion by late 2021, the project remains largely unfinished as of March 2026, with 88% of the work still in progress. The report noted that only four of the 35 work packages have been completed, while several others are classified as sick projects or are behind schedule. Issues cited include utility relocation, design changes, and weaknesses in governance and planning.

In response to these findings, Sabah Deputy Chief Minister Dr. Joachim Gunsalam clarified that the reported 11.4% completion rate only accounts for fully completed and handed-over packages. He stated that actual physical progress on other active packages ranges between 23% and 93%. The state government intends to open eight packages, covering 179 kilometers, in stages by the end of 2026. Challenges contributing to the timeline include difficult terrain, land acquisition issues, and the transition from the Project Delivery Partner model to conventional construction methods.