The Prime Minister officially launched the first phase of the RM27bn PanBorneo  Highway  (PBH)  today  and  said  that  the  PBH  will  be  toll-free.

Construction of the first phase, which will cost a total of RM13bn, begins in Sarawak  today  with  the  43km  stretch  from  Nyabau  to  Bakun  (target completion: end-2017), to be followed by the Tanjung Datu-Semantan-MiriLimbang  –Lawas  (almost  at  the  border  with  Sabah)  stretch  (target completion: mid-2023).

The whole PBH involves the construction and upgrading of 936km of  road in  Sarawak  and  727km  in  Sabah.  The  section  in  Sarawak  involves  the construction  of  919km  of  a  single  carriageway  from  Tanjung  Datu  to Sematan and a dual carriageway from Sematan to Merapok. (Source: Bernama)

Comments: The launch of the PBH is good news for Malaysian construction companies  in  general,  and  Sarawak  and  Sabah  based  construction companies  in  particular.  Among  the  Sarawak-based  construction companies and building material suppliers are Naim Holdings, Hock Seng Lee, Cahya Mata Sarawak, and KKB Engineering. IJM Corp (BUY TP  RM8.00)  is  one  of  the  Peninsular  contractors  which  had  undertaken substantial jobs in Sarawak. Peninsular contractors which had undertaken civil  projects  in  Sabah  include  WCT  Holdings (BUY  TP  RM2.12) and Ireka.

Source: Affin Hwang Capital Research - 1 Apr 2015