By Ts Dr. Hj Ramli Amir, former President of the Chartered Institute of Logistics and Transport (CILT) Malaysia and Vice-President of CILT International for Southeast Asia
KOTA KINABALU: Sabah stands at a critical crossroads in its economic development.
While endowed with abundant natural resources and strategically positioned within Southeast Asia, Sabah’s logistics and transportation systems remain fragmented and underdeveloped.
In contrast, neighbouring Sarawak has embarked on a transformative journey, guided by its Integrated Transport Master Plan 2025–2040 and the renewable energy-driven Sarawak Corridor of Renewable Energy (SCORE).
These initiatives have propelled Sarawak towards becoming a logistics powerhouse, offering valuable lessons for Sabah.
This essay explores how Sabah can adapt and refine Sarawak’s model, focusing on strategic planning, multi-modal integration, sustainability, and inclusive growth, while addressing Sabah’s unique geographical, economic, and social contexts.
Adopting a Comprehensive, Data-Driven Transport Masterplan
A critical first step in Sabah’s logistics revolution is the establishment of a unified, data-driven masterplan. Sarawak’s Integrated Transport Master Plan has successfully consolidated efforts across land, maritime, air, and riverine transport, creating a coherent vision for the state’s future. Sabah must develop its own Sabah Integrated Logistics and Transport Master Plan (SILTMP), anchored on three foundational pillars: multi-modal integration, climate resilience, and phased implementation.
Multi-modal integration is essential to ensure seamless connectivity between key nodes such as the Sapangar Bay Container Port, the Sabah State Railway, and rural road networks.
Sarawak’s Kuching Urban Transport System (KUTS), which synchronises autonomous rail transit with pedestrian-friendly spaces, exemplifies how integrated systems can reduce congestion and enhance efficiency. For Sabah, aligning port operations with rail upgrades could significantly reduce cargo dwell times, mirroring the efficiency gains seen in Kuching’s urban mobility overhaul.
Climate resilience must be embedded in Sabah’s infrastructure planning.
Sarawak’s SCORE initiative, targeting 73% renewable energy usage by 2028, demonstrates the importance of future-proofing infrastructure against climate shocks. Sabah can follow suit by elevating port facilities, constructing flood-resistant highways, and integrating solar-powered micro-hubs in rural districts such as Keningau.
Such measures would not only reduce post-harvest losses but also bolster the resilience of rural communities.
Phased implementation, guided by participatory stakeholder engagement, is crucial for the success of large-scale infrastructure projects. Sarawak’s use of lab-based workshops ensures that projects align with community needs and priorities. Sabah should replicate this approach, focusing initially on high-impact initiatives such as the Kota Kinabalu–Tuaran Highway Upgrade and the dredging of Sapangar Bay to accommodate larger vessels.
This phased, community-driven strategy will foster local buy-in and ensure that investments deliver tangible benefits.
Modernising Strategic Infrastructure Nodes
The modernisation of strategic infrastructure nodes is central to transforming Sabah’s logistics landscape. Sarawak’s expansion of Miri Port, aiming to handle 3.5 million tonnes annually through deepened channels, serves as a compelling model. Sabah’s strategy should prioritise port upgrades, rural micro-hubs, and the revival of coastal shipping.
Upgrading Sapangar Bay by dredging it to 18 metres would enable direct berthing of larger vessels, eliminating costly transhipment surcharges. The adoption of AI-driven cargo optimisation systems could further reduce empty container repositioning costs, enhancing the port’s competitiveness in regional supply chains.
Rural micro-hubs, equipped with cold chain facilities and powered by solar energy, are vital for integrating rural producers into global markets. Sarawak’s Batang Ai Floating Solar Farm, which offsets significant carbon emissions annually, offers a replicable model for Sabah. Establishing such hubs in Tenom and Keningau would mitigate post-harvest losses and create new economic opportunities for rural communities.
The revival of coastal shipping, particularly through biodiesel-powered “water taxi” networks along the coastal towns, could drastically reduce transport costs for all including the island communities.
This approach, inspired by Sarawak’s focus on riverine transport, would enhance connectivity and support inclusive development across Sabah’s diverse geography.
Strengthening Governance and Stakeholder Collaboration
Effective governance and stakeholder collaboration are indispensable for the successful execution of Sabah’s logistics transformation. Sarawak’s Transport Ministry and SCORE’s robust governance frameworks ensure accountability, efficiency, and alignment with broader development goals.
Sabah must establish a statutory Sabah Logistics Authority (SLA), empowered to enforce decisions across federal and state agencies. Such an authority would prevent the recurrence of misalignments, such as the Labuan ferry debacle, and streamline the implementation of critical projects like the Sapangar Bay–KKIP Rail Link.
Public-private partnerships (PPPs) offer a powerful mechanism for mobilising private capital and expertise. Sarawak’s Build-Lease-Maintain-Transfer (BLMT) model for road projects has attracted significant private investment while ensuring high-quality maintenance.
Sabah can emulate this model, particularly for major projects like the Kota Kinabalu–Ranau Highway upgrade, potentially unlocking hundreds of millions in private investment and addressing the state’s substantial infrastructure funding gap.
Cross-border synergies, particularly under the Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA) framework, can further enhance Sabah’s logistics ecosystem. Reviving the Borneo Ro-Ro Network and harmonising digital customs protocols would reduce shipping costs and border delays, strengthening Sabah’s role as a regional trade hub.
Embracing Sustainability and Digital Innovation
Sustainability and digital innovation are at the heart of modern logistics systems. Sarawak’s Post-Covid Development Strategy 2030 prioritises renewable energy and digitalisation, with a significant proportion of its energy mix now derived from sustainable sources. Sabah must similarly commit to decarbonising its logistics sector and harnessing digital technologies.
Transitioning Sapangar Bay’s equipment to electric power, supported by solar farms in the Interior Division, could enable Sabah to achieve ambitious renewable energy targets. The development of hybrid energy systems, as exemplified by Sarawak’s Baleh Hydroelectric Project, highlights the potential for integrating diverse renewable sources to power logistics operations.
The deployment of artificial intelligence (AI) and the Internet of Things (IoT) can revolutionise supply chain management. Predictive analytics for cargo routing, as implemented in Sarawak’s ports, would optimise logistics flows and reduce costs. Establishing a Logistics Innovation Hub in partnership with Universiti Malaysia Sabah would bridge the technology gap with Peninsular Malaysia and foster a culture of innovation.
Human capital development is equally important. Sarawak’s emphasis on digital skills training for green technology should be mirrored in Sabah, with vocational partnerships ensuring that the workforce is equipped to thrive in an increasingly automated and digitalised logistics sector.
Enhancing Rural and Regional Connectivity
Inclusive development requires a focus on rural and regional connectivity. Sarawak’s extensive riverine networks and near-universal rural electrification highlights the importance of reaching remote communities. Sabah must revitalise river transport, develop electric vehicle (EV) charging corridors, and boost air connectivity.
Deploying cargo barges on the Kinabatangan and Padas Rivers would alleviate pressure on flood-prone roads and provide a reliable alternative for transporting bulky goods. This approach, inspired by Sarawak’s success in leveraging waterways, would enhance the resilience and efficiency of Sabah’s logistics network.
The installation of solar-powered EV charging stations along the Pan-Borneo Highway, incentivised by tax breaks, would support the transition to electric fleets. Sarawak’s Green Investment Tax Allowance provides a proven template for encouraging green infrastructure investments.
Expanding the cargo capacity of Kota Kinabalu International Airport and reviving key international routes would position Sabah as an ASEAN aviation hub. This strategy, aligned with Sarawak’s efforts to enhance air connectivity, would open new markets and stimulate economic growth.
Overcoming Challenges: Funding, Bureaucracy, and Climate Risks
Sabah faces a range of challenges that must be addressed to realise its logistics and transportation ambitions. Funding gaps, bureaucratic silos, and climate risks are particularly pressing.
Innovative financing mechanisms, such as the issuance of Green Sukuk Bonds backed by carbon credits from mangrove conservation, can help bridge the funding gap for major infrastructure projects. This approach mirrors Sarawak’s successful use of green financing for its Baleh Hydroelectric Project.
Bureaucratic silos often impede the timely execution of projects. Legislating the roles and of the Sabah Logistics Council into an authority to override conflicting federal-state directives would ensure cohesive implementation of the SILTMP and prevent costly delays.
Climate risks, including rising sea levels and extreme weather events, threaten the integrity of Sabah’s infrastructure. Mainstreaming climate stress tests for all major projects, as practised in Sarawak’s SCORE framework, would safeguard critical assets and ensure long-term resilience.
Conclusion: A Call for Bold, Unified Action
Sabah stands on the threshold of a logistics and transportation revolution.
By adopting a comprehensive, data-driven masterplan; modernising strategic infrastructure nodes; strengthening governance and stakeholder collaboration; embracing sustainability and digital innovation; and enhancing rural and regional connectivity, Sabah can emulate and surpass Sarawak’s achievements.
Immediate adoption of the Sabah Integrated Logistics and Transport Master Plan, statutory empowerment of the Sabah Logistics Authority, and prioritisation of public-private partnerships are essential first steps. By leveraging its unique assets—strategic ports, renewable resources, and proximity to ASEAN markets—Sabah can transcend its infrastructural legacy and unlock a new era of prosperity.
The rewards are substantial: a projected 2.5% annual GDP boost, the creation of 50,000 new jobs, and the emergence of a sustainable logistics ecosystem that bridges the urban-rural divide.
The time for Sabah to act is now, seizing the opportunity to become a logistics powerhouse and a model for inclusive, sustainable development in Southeast Asia.
