Deputy minister: No payment delays affecting Pan Borneo Highway project

There have been no delays in payments to contractors working on the Pan Borneo Highway project that could affect construction progress, Deputy Works Minister Datuk Seri Dr Ahmad Maslan told the Dewan Rakyat today. — Bernama pic

First Published: Monday, 19 Oct 2026 4:03 PM MYT

KUALA LUMPUR, Oct 19 — There have been no delays in payments to contractors working on the Pan Borneo Highway project that could affect construction progress, Deputy Works Minister Datuk Seri Dr Ahmad Maslan told the Dewan Rakyat today.

He said payments for Phases 1A and 1B were being made in line with physical progress, with disbursements keeping pace with or exceeding scheduled levels.

“Phase 1A, comprising 15 work packages, had achieved 89.54 per cent physical completion against a scheduled 96.23 per cent, while financial disbursements stood at 88.78 per cent.

“For Phase 1B, which has only recently begun, actual physical progress stands at 25.53 per cent, ahead of the scheduled 24.76 per cent.

“Financial disbursements have reached 22.11 per cent, exceeding the scheduled 20.73 per cent. Therefore, there is no issue with payments,” he said in reply to Datuk Wetrom Bahanda (KDM-Kota Marudu) on whether delays in the project were caused by late payments to contractors or the appointment of contractors lacking the necessary expertise.

Ahmad also acknowledged that contractor performance remained a concern that needed to be addressed to keep the project on track.

He said the Works Ministry had tightened monitoring through monthly meetings to review construction progress and resolve emerging issues.

The meetings, chaired by the Sabah State Secretary and the ministry’s Secretary-General, were part of efforts to ensure the project was implemented effectively, he said.

The ministry has also introduced measures to prevent further delays, including strengthening steering committees and special task forces to assess contractor performance, identify causes of delays and develop solutions.

These measures are aimed at ensuring the Pan Borneo Highway project is completed on schedule, he added. — Bernama