Pan Borneo Highway Sabah Phase 1 costs rise RM1.05 billion after missing 10-year deadline

October 5, 2026 at 08:10 AM1 min

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The first phase of the Pan Borneo Highway Sabah project saw costs rise by RM1.05 billion, or 6%, after missing its 10-year deadline, according to the Auditor General's report released Monday. The overrun was driven mainly by Phase 1a, whose costs climbed to RM11.323 billion, 9.5% above the original RM10.336 billion. The government was forced to provide additional allocations beyond the original budget as the project could not be fully completed.

Key Facts

Phase 1 costs increased by RM1.05 billion, or 6%, after the project missed its 10-year deadline.
Phase 1a costs rose to RM11.323 billion, RM987 million or 9.5% higher than the original RM10.336 billion.
The project covers 35 work packages and a total road length of 706 km.
The implementation concept was outlined by the minister of works on Oct 23, 2015.

Cost Overrun

The first phase of the Pan Borneo Highway Sabah project saw costs increase by RM1.05 billion, or 6%, after missing its 10-year deadline, according to the Auditor General's report released Monday. The report cited Phase 1a as the main factor, with costs rising to RM11.323 billion, RM987 million or 9.5% higher than the original RM10.336 billion. Due to the cost increase, the project could not be fully completed, forcing the government to provide additional allocations beyond the original allocation.

Project Background

The Pan Borneo Highway Sabah Project is an initiative of the cooperative government to improve the road infrastructure network in Sabah. The implementation concept was outlined by the minister of works on Oct 23, 2015. The project covers 35 work packages and a total road length of 706 km. The main objective is to enhance connectivity and access, especially for rural communities in Sabah.