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Pan-Borneo Highway shows Sabah, Sarawak road to economic boom By John Teo

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Publish date: Fri, 16 Sep 2022, 08:40 AM

By the time we celebrate the 60th Malaysia Day next year, Sarawakians will be able to drive all the way from Kuching to Miri in dual carriageways.

Just this stretch of the Pan-Borneo Highway, which will later extend seamlessly to Sabah via Brunei, is nearly equivalent in length to the North-South Expressway from Perlis to Johor.

Senior Works Minister Datuk Seri Fadillah Yusof said the Pan-Borneo Highway is easily the single largest public works project ever.

The first phase of the Sarawak component cost RM16 billion. It's 86.5 per cent finished and will be completed in the first quarter of next year.  

The Sabah section costs RM12 billion. The second phase linking Sarawak to Sabah is slated to kick off next year.

Fadillah said the government had approved RM12 billion for this link, which comprises two routes: one passing through Brunei and another bypassing the sultanate.

A project of this size comes with challenges. It got hit by a triple whammy.

The first was the change in administration following the 2018 general election.

Fadillah said this resulted in a change to the project implementation model and governance that affected construction performance.

"These changes require restructuring of the contract and additional manpower to manage the project."

Then the pandemic hit, with restrictions due to the Movement Control Order and its effect on the availability of resources, such as manpower, machinery and materials.

The third impact came with the unfavourable global economic climate, disrupting the supply chain and resulting in an increase in the prices of construction materials.

Apart from spillover effects on Sarawakians and Sabahans, the highway represents an all-Malaysia joint undertaking.

Given that Sarawak- and Sabah-based companies had never been exposed to such a gigantic infrastructure project, the highway's work packages were awarded to joint-venture consortia of construction firms from Peninsular Malaysia and the two states.

The exposure of Sarawak and Sabah companies and consultants to the highway's construction will stand them in good stead as the two states ready for economic lift-off in the wake of the its completion.

Fadillah said: "Quality infrastructure affords investors a conducive investment climate and lowers the cost of doing business.

"This will provide a multiplier effect for job creation, business opportunities and injection of income into the economy."

This should also mean a heightened local capacity to leverage Indonesia's decision to move its capital to Kalimantan.

Fadillah said upon the completion of the Sarawak part of the highway next year, his ministry would focus on the construction of mega projects in the northern part of state, including the Sabah-Sarawak Link Road (Phase 1 and 2) in Miri, Limbang and Lawas.

This will connect rural communities through roads in place of logging trails.

Besides, the highway will focus on improving roads in Limbang and Lawas passing through Brunei.

A major highway often becomes a catalyst for economic expansion.

The late chief minister Tan Sri Adenan Satem said he wanted the highway to be as good as any in the peninsula.

However, unlike many highways in the peninsula, the Pan-Borneo Highway will be toll-free.

As we celebrate Malaysia Day today, Sarawak and Sabah can take their rightful places as an exciting new growth centre that will boost national development.

The writer views developments in the nation, region and wider world from his vantage point in Kuching

https://www.nst.com.my/opinion/columnists/2022/09/831666/pan-borneo-highway-shows-sabah-sarawak-road-economic-boom

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