Allow local Sabah companies to work on Pan-Borneo Highway, says Shafie Apdal

KOTA KINABALU: The federal Public Works Department should allow local construction companies to form consortiums to carry out the Pan-Borneo Highway projects, says Parti Warisan president Datuk Seri Mohd Shafie Apdal.

He said awarding such contracts to public listed companies with no physical presence in Sabah would only further delay the long-overdue Pan-Borneo Highway projects in the state.

“What will happen is that these companies, with no presence, manpower, or equipment in Sabah, will subcontract various Pan-Borneo project parcels to local companies,” he said in a statement on Saturday (Nov 9).

Shafie said he supported the implementation of the Pre-Qualification (Pre-Q) process in the awarding of government projects.

“However, I am concerned with the imbalance that occurs in its implementation, especially when large capital companies from the peninsula get priority. This raises questions about the opportunities given to local companies in Sabah,” he said.

He said that the Pan-Borneo project in Sabah is an example of how imbalances in infrastructure project implementation can lead to delays and problems.

“Although Sabah has gone through five prime ministers, the Sipitang phase of the road is still not ready. On the other hand, Sarawak has shown much more rapid progress in the implementation of Pan Borneo,” said Shafie.

“In Sabah, three companies from the peninsula reportedly obtained this large contract but are said to have no manpower or resource facilities in the state.”

He said as a result, these companies had to subcontract to local companies to implement the project, which raises the question of why local companies are not given greater opportunities.

“Why are companies in Sabah, which may not have large financial capital such as RM1bil or RM2bil, not eligible to acquire the project? I suggest the combination of local companies to form a consortium,” Shafie said.

He said forming a consortium would strengthen their position and meet the capital requirements needed to secure large projects.

“Our concerns are about potential leakages when main contractors from outside Sabah subcontract to local companies. In this situation, both the main contractor and subcontractor have to pay taxes and earn profits, which can lead to increased costs and reduce the project’s effectiveness.

“I hope that the Public Works Dept can monitor this matter carefully and ensure that priority is given to local companies in Sabah that have the capacity,” said Shafie, who raised the matter during his debate on Budget 2025 in Parliament last month.