Are Investments in Road Infrastructure on Borneo a Sustainable Recovery Strategy for Malaysia?

This What-if simulation forecasts the economic, social and environmental outcomes of recovery spending on a road infrastructure project in Malaysia: the Pan Borneo Highway. The implementation of this large-scale highway project has commenced and is set for completion in 2023.

The highway is planned to cut through the Heart of Borneo, one of the world’s most biodiverse regions, in an effort to connect the markets of the Malaysian provinces of Sabah and Sarawak, to create employment and to increase tourism in the area.

This simulation assesses and estimates the costs, benefits, and trade-offs (adverse impacts) of the Pan Borneo Highway to address the following questions:

  1. What-if the Malaysian Government considers the highway as a recovery project?
  2. What-if the Government would not only promote the highway but also provide recovery spending for mitigating and offsetting adverse environmental impacts caused by this infrastructure project?
  3. Can the highway in either of these instances be considered a worthwhile project for achieving a sustainable recovery in the Malaysian part of Borneo?

Read the full report for detailed simulation results and answers to these questions.