PAN BORNEO HIGHWAY SABAH:

The Pan Borneo Highway (PBHS) is Malaysia's biggest road project that spans over 2000km, connecting two East Malaysian states together, Sarawak and Sabah.

Its story dates back to the 1960s and is said to be complete in 2021 - any day now! However, the Covid pandemic has put a strain on the progress of the multibillion ringgit project.

Nevertheless, the federal government of Malaysia and the State government of Sabah has assured the public of the continuation of the Sabahan portion of PBHS due to its beneficial impact on stimulating the economy as well as other gains.

In this article, we will explore why enhancing connectivity between these Borneo states is crucial to the economy's development.

COMMITMENT TO INDUSTRY STANDARDS

The PBHS network will inevitably provide important economic benefits to individuals and businesses throughout Sabah. 

Being one of the many projects to commit to the Construction Industry Transformation Programme (CITP) 4 Strategic Thrusts, the parties vested to deliver the project are compelled not only to deliver the multi-billion-ringgit project within the time and cost allocated by the Government but in a professional and well-organised manner. 

Better reliability, quality, and access shall promote efficiency via industrial restructuring, adoption of new transport technologies, cost reductions, and changes in distribution or logistics patterns.

This in turn will not only increase productivity in Sabah but also help Malaysia maintain a globally competitive position.

BROADENING OPPORTUNITIES

Let us look into the employment rate brought about by PBHS construction activities. 

This infrastructural mammoth of a project will primarily generate a direct impact on employment in the highway construction industry such as managers, specialists, semi-skilled and unskilled labourers that are archetypally called upon to design, construct and manage new roads, resurface or upgrade existing ones, and or perform various capital improvements that shall enhance highway amenity levels. PBHS will also engender jobs in many other industries indirectly. 

For example, companies that supply materials for highway construction will receive orders for more materials. In a discussion with Sabah Quarry-Owners Association (SQOA), it was established that the demand for aggregate and sand materials, especially in the construction of PBHS, far exceeds the total supply from Sabah. 

It can therefore be deduced that there is an increase in opportunity for new quarries to open. 

Folks who work in these industries will subsequently spend and invest their earnings within local, state, and national economies, thereby generating jobs across many other industries.

Therefore, in the context of real estate, more jobs lead to more purchasing power hence an increase in the potential of buying properties either to reside in or as a means to improve one’s investment portfolio.

REFINING TRANSPORTATION

The next point encompasses direct user benefits accruing to commuters and travellers, including time savings, safety improvements, and vehicle operating cost reductions.

This is especially exciting for real estate developers and potential buyers as commercial development that shall come about due to the construction of PBHS may inevitably improve property values.

THROTTLE ON PRODUCTIVITY

Productivity is the ratio of outputs produced to the inputs used to produce those goods and services. Productivity growth occurs when the same inputs produce more output.

This growth may be caused by higher education and skill levels, growth in the quality and quantity of the capital stock, innovation, technological advances, or public investment, such as highway investment.