KUCHING: The Federal Government will appoint a maintenance concession company to carry out works to address the redline alignment issue on the Pan Borneo Sarawak Highway, which involves approximately 136 kilometres of road.

Works Minister, Dato Sri Alexander Nanta Linggi, said the decision to implement this approach was agreed upon recently to enable efforts to address the issue to begin in the near future.

"So, the public need not worry because in the near future the decision will be finalised and the relevant companies will be appointed to carry out the works," he said.

He said this at a press conference after the Opening Ceremony of the Malaysian Regional Geotechnical Engineering Conference (MRGEC) 2026 at a leading hotel here on Wednesday.

He added that several other approaches will also be implemented to address the issue. However, he said the Pan Borneo Highway 'Redline' issue requires specific fund financing as the overall estimate amounts to a cost of RM900 million.

Meanwhile, Dato Sri Alexander Nanta said the Federal Government is still able to manage and address the impact of rising construction material costs at present without needing to increase allocations for development projects currently being implemented.

So far, he said, the impact of the war on supply chains and construction material costs has not yet reached a worrying level.

"If the war continues and starts to affect fuel supplies such as petrol and oil more seriously, then the impact will become more pronounced, and that is when the strategies that have been planned will be activated.

"This situation depends on market developments as well as the current economic situation," he explained.

According to him, the Ministry of Works (KKR) has been asked to present short-term and long-term strategies to address the rather challenging economic situation following the war in West Asia.

He said the Department of Works (JKR) and the Construction Industry Development Board Malaysia (CIDB) have conducted studies and presented the findings of the studies at the National Economic Action Council (MTEN), including strategies that could be implemented to address the issue. -UKASnews

Prepared by : Ahmad Daniel Faiz
Translator : Uilson Ng