Malaysia Eyes Borneo-Encompassing Rail Link to Brunei and Kalimantan

 By Sharen Kaur

New Straits Times, September 9, 2025 

Deputy Minister of Transport Datuk Hasbi Habibollah speaking at the 45th Asean Railways CEOs Conference 2025. STR/NABILA ADLINA AZAHARI

KUALA LUMPUR: Malaysia is considering extending the proposed Trans Borneo Railway beyond domestic borders to Brunei and Kalimantan, Indonesia — with the longer-term ambition of circling the entire island of Borneo — in a move that could transform regional connectivity.

Deputy Transport Minister Datuk Hasbi Habibollah said the project, now under feasibility study as part of the 13th Malaysia Plan (13MP), is initially designed to connect Sabah with Kuching at Borneo's southern tip.

Talks are ongoing with Brunei and Indonesia on whether the Trans Borneo Railway can be extended there, he said on the sidelines of the 45th Asean Railways CEOs' Conference (ARCEOs) today.

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"Our aspiration in this feasibility study is to make sure also that we can be connected to Indonesia. That would mean another border connection with an Asean neighbour. We can even look at circling the island of Borneo. We are on the island; we must do something about it," Hasbi said.

Transport Minister Anthony Loke Siew Fook said last month the feasibility study for the Trans-Borneo Railway is on track for completion by the third quarter of 2026.

n a written parliamentary reply to Vivian Wong Shir Yee (PH–Sandakan), Loke said a local consultancy has been appointed to carry out the 12-month study for the Sabah and Sarawak segments, which began in June 2025.

The RM7 million study, funded under the 12th Malaysia Plan, will assess the project's technical requirements, commercial and operational models, socio-economic benefits, governance structure, and overall viability. Deliverables include a strategic blueprint, phased implementation plan, and rollout roadmap, developed with stakeholder input to secure broad support.

If realised, the Trans-Borneo Railway — estimated to cost RM63.3 billion — would rank among Southeast Asia's largest cross-border transport infrastructure projects.

Beyond improving domestic connectivity, links with Sabah, Brunei and Kalimantan could position Sarawak as a strategic trade and transit hub, advancing the state's Post-Covid-19 Development Strategy (PCDS) 2030.

The project is also expected to spur investments in tourism, agriculture, and resource-based manufacturing, while generating thousands of jobs during construction and operation.

Source: https://www.nst.com.my/business/corporate/2025/09/1272397/malaysia-mulls-railway-link-brunei-kalimantan-vision-encircle