Study on multi-billion ringgit Trans-Borneo Railway reaches final lap
Transport Minister Anthony Loke Siew Fook said in a written parliamentary reply to Vivian Wong Shir Yee (PH–Sandakan) that a local consultancy firm has been appointed to conduct the 12-month study for the Sabah and Sarawak segments, which began in June 2025.
The RM7 million study, fully funded under the 12th Malaysia Plan, will deliver a detailed comparative analysis of the project's technical requirements, commercial and operational models, socio-economic benefits, governance framework, and overall viability. Key outputs will include a strategic blueprint, a phased implementation schedule, and an actionable rollout plan – all developed with stakeholder consultation to ensure broad acceptance and support.
If implemented, the Trans-Borneo Railway – with an estimated price tag of RM63.3 billion – would be one of Southeast Asia's largest cross-border transport infrastructure projects.
Analysts say it could transform Sarawak's economic landscape by unlocking new growth corridors, reducing logistics costs, enhancing rural-urban connectivity, and opening access to regional markets.
Beyond domestic benefits, enhanced rail links with Sabah, Brunei, and Kalimantan could position Sarawak as a strategic trade and transit hub in Borneo, deepening economic integration and aligning with the state's Post-Covid-19 Development Strategy (PCDS) 2030.
The project is also expected to spur investment in high-value sectors such as tourism, agriculture, and resource-based manufacturing, while creating thousands of jobs during construction and operation.
First proposed in 2015, the Trans-Borneo Railway has attracted significant interest.
In April 2024, Brunei-based Brunergy Utama Sdn Bhd claimed it would implement the US$70 billion (RM330 billion) project in two phases, spanning over 1,600 kilometres with trains capable of speeds up to 350 km/h.
Loke, however, stressed that no company has been awarded the project and that any announcement would only be made through official government channels.
If realised, the Trans-Borneo Railway would mark a historic step in regional infrastructure development, delivering long-term economic dividends for Malaysia and its Borneo neighbours.
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