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: The establishment of a specialised Ministry of Transport in Sabah represents a critical policy initiative that has gained renewed urgency following the formal call by the Chartered Institute of Logistics and Transport Malaysia (CILTM) Sabah Section on June 11, 2025.
Speaking at a seminar on ‘Transport Planning for a Better Tomorrow’ at Universiti Malaysia Sabah, CILTM Sabah chairman Daniel Doughty emphasized that while the state’s logistics and transport infrastructure is vital to daily life and the economy, it suffers from fragmentation, underinvestment, and short-term planning.
This proposal addresses the urgent need for coordinated transport planning, enhanced infrastructure development, and strategic logistics management in Malaysia’s second-largest state, drawing from the experiences of the federal Ministry of Transport Malaysia and Sarawak’s Ministry of Transport to present a comprehensive case for creating a dedicated transport ministry in Sabah to address the state’s unique geographical challenges and economic aspirations.
Sabah’s strategic position in Southeast Asia, coupled with its vast geographical expanse and diverse economic landscape, necessitates a specialised approach to transport and logistics governance.
The CILTM Sabah’s formal call for establishing a Ministry of Transport in Sabah highlight the critical role of logistics and transport in driving economic growth and social inclusion.
This proposal gains particular urgency given the stark disparities highlighted by a World Bank study, which shows that transport costs in Sabah are 30 to 50 percent higher than in Peninsular Malaysia, with public transport penetration in urban areas such as Kota Kinabalu at just 15 percent, compared to 45 percent in Kuala Lumpur.
The current state of transport planning in Sabah reflects systemic challenges that require ministerial level intervention.
As Doughty noted, “The current planning in Sabah is often reactive…we have seen it too many times. Only when roads are clogged, only when commuters complain, only when freight is delayed or major supply chain issues arise, then we start forming committees and scramble to respond”.
This reactive approach contrasts sharply with the anticipatory, data-driven planning that engaging all stakeholders and prioritizing long-term development would provide.
The Federal Model: Ministry of Transport Malaysia.
The Ministry of Transport Malaysia, established in 1978, serves as the primary federal agency responsible for formulating and implementing policies related to land transport, logistics, maritime, and aviation sectors.
The ministry operates through a comprehensive organizational structure that includes specialized divisions for strategic planning, maritime affairs, aviation, and logistics and land transport. This federal model demonstrates the effectiveness of centralised transport governance in coordinating multiple agencies and ensuring policy coherence across different transport modes.
The federal ministry’s functions encompass planning and formulating transport policies, infrastructure project development, coordinating integration between transport modes, providing licensing services, regulating pricing policies, and implementing regional and international cooperation in transportation.
These comprehensive responsibilities illustrate the scope and complexity of transport governance that requires dedicated ministerial oversight.
Federal Agencies and Coordination
The federal transport structure includes numerous specialised agencies such as the Road Transport Department (JPJ), Civil Aviation Authority Malaysia (CAAM), Marine Department Malaysia, and various port authorities. Notably, the federal system already recognises regional variations through the establishment of separate Commercial Vehicle Licensing Boards for Sabah and Sarawak, acknowledging the unique circumstances of East Malaysian states.
The National Transport Policy 2019-2030 provides strategic direction for integrated transport development, emphasising the need for strengthening coordination between federal and state governments through mechanisms such as the National Transport Council.
This policy framework specifically addresses the geographical differences in Sabah and Sarawak, recognising the need for tailored approaches to transport development in these states.
The Sarawak Model: A Successful Precedent
Sarawak has successfully established its own Ministry of Transport (MOTS), which oversees comprehensive transport planning and implementation across the state.
The ministry operates specialised divisions including Land Transport & Logistics, Maritime and Riverine Transport, and Aviation, demonstrating the multi-modal approach necessary for effective transport governance. As highlighted by the CILTM Sabah chairman, “just next door, Sarawak has established a Ministry of Transport. Why does this matter? Because logistics and transport are too vital to be a side portfolio”.
The Sarawak model has achieved significant milestones, including the development of the Sarawak Integrated Transport Master Plan 2025-2040, which provides a comprehensive framework for integrated, modern, and sustainable transport system development. This masterplan addresses the complexity and opportunities within the transport sector that previous regional development plans had not fully consolidated.
Strategic Initiatives and Achievements
Sarawak’s Ministry of Transport has spearheaded major infrastructure projects such as the Kuching Urban Transport System (KUTS), which represents a modern, green public transport system powered by clean hydrogen energy. The ministry has also focused on digital solutions to modernise transport and improve logistics delivery services, recognising the importance of technological advancement in maintaining competitiveness.
The Sarawak government’s proactive approach includes collaboration with various stakeholders, including the Sarawak Rivers Board to encourage the use of rivers for transportation of bulky goods, thereby reducing road damage and traffic congestion. This integrated approach demonstrates the effectiveness of having dedicated ministerial oversight for transport coordination.
Sabah’s Current Transport Challenges
Sabah faces significant transport infrastructure challenges that hinder its economic development potential.
The Pan Borneo Sabah Highway serves as a compelling case study of coordination issues, with Phase 1A achieving 82 percent completion while Phase 1B lags at only 3.7 percent, and Phases Two and Three remaining far from satisfactory. As Doughty emphasized, “These numbers are not just figures; they are symptoms of systemic gaps in planning and coordination”.
The state’s road infrastructure suffers from persistent issues including poor-quality patching materials, improper repair methods, ineffective routine inspections, delayed repairs, unskilled workmanship, and non-compliance with standard operating procedures. These challenges contribute to safety hazards, increased vehicle maintenance costs, and delays in cargo transport, ultimately affecting Sabah’s competitiveness as a logistics hub.
Governance Fragmentation
Current transport planning in Sabah is characterised by reactive approaches rather than anticipatory, data-driven planning. The state’s logistics and transport infrastructure suffer from fragmentation, underinvestment, and short-term planning, which are symptoms of the absence of dedicated ministerial oversight. The existing system only responds when problems become critical, leading to formation of ad hoc committees and scrambled responses.
Despite progress such as the establishment of the Sabah Logistics Council (SLC) in June 2024, which brought together players from ports, local councils, freight operators, academia, and government agencies, Doughty noted that “more needs to be done”. The council’s formation followed CILTM Sabah’s advocacy through the Institute of Development Studies (IDS) which organises round table discussions with stakeholders. It was later approved by the state cabinet.
Economic Impact
The economic consequences of inadequate transport coordination are substantial, with transport costs in Sabah estimated to be 30 to 50 percent higher than in Peninsular Malaysia. The state’s agricultural and tourism sectors suffer from unreliable transport networks, with perishable goods often spoiling before reaching ports and tourists facing significant delays on key routes.
Supporting Factors for Establishing Sabah’s Ministry of Transport
The federal Ministry of Transport’s experience demonstrates the critical importance of centralised coordination in managing complex transport systems. The ministry’s comprehensive approach to policy formulation, infrastructure development, and inter-agency coordination provides a proven model for effective transport governance. The federal system’s recognition of regional variations through specialised arrangements for East Malaysian states validates the need for state-level transport ministry.
The National Transport Policy 2019-2030 explicitly acknowledges the need for strengthening coordination between federal and state governments, providing policy support for enhanced state-level transport governance. The policy’s emphasis on addressing geographical differences in Sabah and Sarawak further supports the case for specialised state ministries.
Sarawak’s Successful Implementation
Sarawak’s Ministry of Transport has demonstrated the effectiveness of state-level transport governance through successful implementation of integrated transport planning and major infrastructure projects. The ministry’s ability to develop comprehensive masterplans, coordinate multi-modal transport development, and implement innovative projects like KUTS illustrates the benefits of dedicated transport ministries.
The Sarawak model’s focus on digital transformation and modern technology integration shows how state transport ministries can drive innovation and maintain competitiveness in the logistics sector. The ministry’s collaborative approach with various stakeholders, including private sector partners and federal agencies, demonstrates effective governance models that Sabah could emulate.
Economic and Strategic Benefits
Establishing a specialised Ministry of Transport in Sabah would provide several critical advantages. According to Doughty’s proposal, the ministry would enable dedicated funding channels specifically for transport infrastructure development, ensure cross-sector integration, and provide ministerial-level accountability.
The ministry could spearhead the creation of a comprehensive Sabah Logistics and Transport Masterplan that would outline short, medium, and long-term priorities while incorporating rural logistics development and addressing decarbonisation and smart mobility initiatives.
The proposed masterplan would map transport corridors with a 50-year perspective and include resilience planning as a key component, considering the threats of floods, landslides, and supply chain disruptions. This long-term strategic approach would address current gaps in transport governance while ensuring sustainable development.
Technological Innovation and Digital Transformation
The ministry would be positioned to leverage emerging technologies to transform Sabah’s transport sector. Doughty highlighted the potential of artificial intelligence (AI), the Internet of Things (IoT), and blockchain to revolutionise transport systems, noting: “Imagine AI systems optimising bus schedules in real-time, or blockchain platforms securing cross-border documentation”.
The success of the Labuan Transhipment Blockchain Protocol serves as a testament to the potential for technological innovation in the region. This initiative has become the foundation for a growing ecosystem developed by Tijarah Holding Ltd, attracting strategic alliances, most notably with Tesla Asset Management Holdings.
Proposed Structure and Functions
The proposed Sabah Ministry of Transport should adopt a structure similar to successful models while addressing local needs. Key divisions should include Strategic Planning and Policy, Land Transport and Logistics, Maritime and Port Development, Aviation, and Rural Transport Development. This structure would ensure comprehensive coverage of all transport modes while maintaining focus on Sabah’s specific requirements.
The ministry should establish strong
coordination mechanisms with federal agencies, other state ministries, and private sector stakeholders. Integration with the existing Sabah Logistics Council would provide valuable industry input and stakeholder engagement.
Giving the Sabah Logistics Council more bite by turning it into a statutory body with authority to implement policies and plan of the ministry would be a smart move to complement the Ministry’s role.
Core Functions and Responsibilities
The ministry’s primary functions should encompass comprehensive transport masterplan development, infrastructure project coordination, policy formulation and implementation, inter-agency coordination, funding mobilization and management, and performance monitoring and evaluation. These functions would address current gaps in transport governance while ensuring strategic, long-term planning approaches.
Specific responsibilities should include developing integrated transport solutions that connect ports, airports, roads, and rail systems, implementing smart mobility technologies, coordinating with federal transport policies, managing state transport budgets and projects, and ensuring environmental sustainability in transport development.
Conclusion
The establishment of a specialised Ministry of Transport in Sabah represents a strategic imperative that has gained unprecedented momentum following the formal endorsement by CILTM Sabah. As Doughty emphasized, “Infrastructure may be built with concrete and steel, but transport systems are powered by collaboration and political will”. The call to action is clear: “Let us transform Sabah’s transport landscape not through complaints, but through coordinated, sustained action. Let us build a Sabah that moves better, faster, and stronger together”.
The supporting factors for this initiative are compelling: the federal model demonstrates the importance of centralized transport coordination, Sarawak’s success provides a proven template for state-level implementation, and Sabah’s unique challenges require dedicated ministerial attention. The proposed ministry would enhance economic competitiveness, improve social inclusion, and position Sabah as a regional logistics hub.
With transport costs in Sabah significantly higher than the national average and infrastructure challenges limiting economic growth, the state cannot afford to maintain the reactive planning approach that has characterised its transport sector.
The establishment of a Ministry of Transport would provide the institutional framework necessary to transform Sabah’s transport landscape from a constraint into a catalyst for prosperity, ensuring that the state moves better, faster, and stronger together toward a more connected and prosperous future
