Malaysia Launches Feasibility Study for $70 Billion High-Speed Rail

Malaysia has initiated a feasibility study for the Trans-Borneo High-Speed Rail, investing $1.47 million. Launched by a local consulting firm in June 2025, the 12-month study (incorporated into the 12th Malaysia Plan) is expected to be completed in Q3 2026. Covering technical, commercial, socio-economic and other dimensions, it will assess the project's feasibility and propose strategic plans.

The high-speed rail proposal was first put forward in 2015, and in 2024, a Bruneian company submitted a $7 billion plan. The rail will be 1,600 km long with a designed speed of 350 km/h. Phase 1 is planned to connect Pontianak (Indonesia) and Kota Kinabalu (Malaysia), passing through multiple cities in Sarawak and two locations in Brunei. Phase 2 intends to extend to North and East Kalimantan (Indonesia), with Bukit Panggal in Brunei's Tutong District serving as the central hub among 24 stations.

If implemented, the project may become one of Southeast Asia's largest cross-border transportation projects. However, the rugged terrain of Borneo poses great engineering challenges, with an estimated cost of $13.3 billion. While there are concerns about financial risks, proponents argue it will boost rural development and trade. The feasibility study report will ultimately determine the project's future.