Trans-Borneo railway could transform East Malaysia, anchor Asean rail links

KUALA LUMPUR, Malaysia (MNTV) – The planned Trans-Borneo Railway could strengthen Malaysia’s ties with Brunei and Indonesia’s rapidly growing Kalimantan while helping to close domestic economic disparities, reports Business Times. 

“It is a chance to put Borneo at the heart of Asean’s new era of rail connectivity rather than leaving it on the sidelines,” said MY Mobility Vision chief executive officer Wan Agyl Wan Hassan.

Deputy Transport Minister Hasbi Habibollah said during last week’s 45th ASEAN Railways CEOs’ Conference that Malaysia is exploring an extension of the project beyond domestic borders to Brunei and Kalimantan, with the long-term ambition of circling the entire island of Borneo. 

The line is currently under feasibility study as part of the 13th Malaysia Plan (13MP). Wan Agyl cautioned that “big promises demand clarity of thought.” 

“The multi-billion-ringgit project is under feasibility review, and the hard lessons of past mega-projects like the East Coast Rail Link must guide the way. Projections on demand and cost must be credible, governance must be strong, and public engagement must be genuine. Without discipline, the project risks becoming another burden rather than a breakthrough,” he told Business Times.

He described the Trans-Borneo Railway as a once-in-a-generation chance to unlock Sabah and Sarawak states from decades of logistical isolation and position Malaysia as a serious player in Asean’s connectivity race.

Wan Agyl said that for too long, East Malaysia has struggled with high transport costs, limited market access, and uneven industrial growth, and a modern rail link across Borneo could finally break this cycle. 

“It promises to open growth corridors, boost agricultural exports, support manufacturing from automotive to electronics, and connect communities long left at the margins of development.” 

Wan Agyl warned that regional competition is accelerating, with Indonesia expanding high-speed rail and Thailand moving to cement its role as a logistics hub. 

“If Malaysia clings to ferries, roads, and outdated infrastructure, it risks being bypassed in the next wave of trade flows. A bold rail investment would reduce costs, draw foreign investors, and ensure Borneo does not get left behind,” he added. 

“The choice is clear: act boldly but wisely. If Malaysia hesitates, East Malaysia risks another decade of stagnation. If it delivers, the rewards could reshape not only Sabah and Sarawak but also the nation’s place in the regional economy,” Wan Agyl said.

Samuel Tan, founder and chief executive officer of Olive Tree Property Consultants, said the proposed rail network linking Sabah and Sarawak states of Malaysia with Brunei and Indonesia’s Kalimantan has sparked strong international interest – but faces formidable challenges. 

He noted that coordinating across three jurisdictions and securing financing – estimated at between $15 billion and $70 billion – are major hurdles. 

Private investment and international partnerships, potentially involving China or Japan, may be essential, along with trilateral agreements between Malaysia, Indonesia and Brunei, he told Business Times.

“Building through Borneo’s dense rainforests and indigenous territories necessitates careful planning to avoid ecological damage and ensure community benefits,” Tan said, adding that the proposed trans-Borneo rail network could span about 1,600 km, with trains capable of speeds up to 350 km/h.