3 days ago
- Business
- New Straits Times
Study on multi-billion ringgit Trans-Borneo Railway reaches final lap
KUALA LUMPUR: The feasibility study for the Trans-Borneo Railway, a proposed high-speed rail network connecting Sabah, Sarawak, Brunei, and Kalimantan, Indonesia, is on track for completion by the third quarter of 2026, according to Transport Minister Anthony Loke Siew Fook.
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.
