Explainer: Why is Sabah's Pan Borneo Highway lagging behind Sarawak's?

The Pan Borneo Highway, a toll-free transport link connecting Sabah, Sarawak, and Brunei, was initially envisioned as a major project in 2008. However, as of March 2026, the project shows stark differences in progress between Sabah and Sarawak. Sarawak has completed 10 out of 11 work packages, with the final one 99.9% complete, while Sabah has only finished four of its 35 work packages under Phase 1, which spans 706km.

Nine projects in Sabah are classified as sick, 13 are delayed, and nine are ahead of schedule, raising concerns about the project's overall completion.

The Sabah project's progress has been hampered by various factors. The termination of the previous project delivery partner model in 2019 and the subsequent switch to a conventional implementation model led to the project being reliant on annual federal allocations. This change in approach resulted in a delay in contractor appointments for the new packages, which were finalized only between February 2024 and January 2026.

Land acquisition has also been a significant hurdle, as state government approvals for landowner compensation have been a prolonged process.

Furthermore, shortages in essential materials like bitumen, stone, and manpower have added to the delays. Other contributing factors include contractor performance issues, adverse weather conditions, utility relocation, the Covid-19 pandemic, and weaknesses in project governance. The project's completion deadline has since been extended to 2030 due to these planning weaknesses, and public warnings suggest that a funding shortfall could lead to the project remaining incomplete.