KUCHING: The prospects of a Borneo Railway System connecting East Malaysia, Brunei, and Kalimantan holds immense potential for expanding the economic scale and market opportunities in Borneo.
Senior lecturer at Universiti Malaysia Sarawak’s Faculty of Economics and Business, Dr Dzul Hadzwan Husaini, while stressing the economic impact of the proposal, asserted that the emergence of Indonesia’s new capital city, Nusantara, is also expected to play a pivotal role in driving economic growth across Borneo Island.
“Anticipations are high that Borneo will emerge as the next economic powerhouse among Asean countries, fuelled by increased business and job prospects stemming from this endeavour.
“Sarawak, in particular, is poised to contribute significantly to the development of a sustainable, eco-friendly economic landscape in Borneo.
“With its ongoing efforts to establish a renewable energy hub in Malaysia, Sarawak has the potential to supply ample green energy to support the convergence and growth of Borneo through this endeavour,” he said when contacted by New Sarawak Tribune.
His remarks were prompted by the establishment of a Borneo Railway System mentioned by Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg earlier, in which he said the federal government has agreed in principle to its establishment.
However, there are several significant challenges that need addressing before this ambitious project can materialise.
Firstly, Dr Dzul pointed out that Borneo currently lacks the railway infrastructure present in Malaya, which will necessitate a fresh start.
“This means demands for substantial capital. Certainly, to expedite progress, a significant portion of the required funds must be obtained through debt sources.
“Consequently, the government must guarantee that this investment yields a competitive return in the long term,” he explained.
To ensure the successful realisation of this initiative’s net economic benefits, an economic development plan must be meticulously structured.
The interplay between costs and economic benefits is crucial for mitigating high risks, said Dr Dzul.
Secondly, he argued that relying solely on the railway system to enhance the economic integration of East Malaysia, Brunei, and Kalimantan is not feasible.
To this end, he said developing a road infrastructure as a viable alternative to the railway system should also be prioritised.
“Diversifying the options for people-to-people connectivity is crucial for effective investment risk management.
“Road infrastructure offers greater flexibility compared to the railway system, and both forms of infrastructure can complement each other in connecting people within an economically sustainable framework,” he added.
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