Infrastructure & PPPs in Malaysia - Q4 2025 Update

YOG INFRA
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YOG INFRA Q4 2025 insight series

Malaysia is implementing an infrastructure pipeline across transport, energy, digital, and urban sectors, anchored by Public Private Partnership (PPP) models in airports, rail hubs, large-scale water transfer, and transit-oriented developments. The energy transition accelerated through multi-GW solar-plus-storage, hybrid power complexes, biogas facilities, and biofuels, supported by long-term PPAs and concession frameworks. Digital infrastructure expanded rapidly with 600+ MW of data centre capacity targeting hyperscale and AI demand. Backed by USD 6 billion in multilateral and bank-led financing, the programme reflects Malaysia’s vision to leverage PPPs to deliver a low-carbon, digitally driven, and regionally integrated economy.

Read the key developments in Infrastructure and PPPs in Malaysia in our latest insight for the country.

OCTOBER 2025

NEW GOMBAK TERMINAL SET TO DRIVE EAST COAST CONNECTIVITY

The Government of Malaysia has inaugurated the Terminal Bersepadu Gombak (TBG), a major transport hub designed to serve as the Klang Valley’s primary gateway to the East Coast. Located adjacent to the upcoming East Coast Rail Link (ECRL) station, the facility is expected to catalyse development along the ECRL corridor, particularly in Kelantan and Pahang.

Developed under the Build-Lease-Maintain-Operate-Transfer (BLMOT) model at a cost of MYR 307.4 Mn (USD 74.97 Mn), TBG will be managed by concessionaire TEGAS for 25 years before being handed back to the government. The fully integrated terminal features 36 bus bays, more than 1,000 parking spaces, food courts, retail outlets, prayer rooms, waiting areas, and seamless access via walkalators to the ECRL station.

Authorities plan to enhance TBG’s role as a transit-oriented development (TOD) hub by encouraging nearby commercial and residential growth. The government is also considering opening service counters for agencies such as Immigration, the National Registration Department (NRD), and the Road Transport Department (RTD), creating a one-stop centre for public services. The terminal’s launch marks a significant milestone in Malaysia’s efforts to strengthen East–West corridor connectivity and promote integrated, people-centric transport infrastructure.

ZECON TEAMS UP WITH EDRA POWER, NEUTRINOS ENGINEERING TO EXPLORE 700 MW ENERGY COMPLEX IN SARAWAK

Zecon Bhd has entered into a memorandum of understanding (MOU) with Edra Power Holdings Sdn Bhd and Singapore-based Neutrinos Engineering Pte Ltd to explore developing an integrated energy complex (IEC) in Kuching, Sarawak.

The IEC will be located in the Kota Petra Green Technology Park, where Zecon serves as the master developer of the economic zone. It is planned to include a 200-megawatt (MWac) solar photovoltaic plant and a 500MW combined-cycle gas turbine power plant.

Under the agreement, the parties will work together to conduct technical and feasibility studies, securing permits and approvals, negotiating electricity off-take and fuel supply agreements, appointing engineering and construction contractors, and arranging project financing. The MOU isn't legally binding, will remain in force for two years unless replaced by a definitive agreement.

FOUNDER GROUP TO BUILD 310 MWP SOLAR PLANT AND 620 MWH BESS IN SARAWAK

Founder Group has signed a heads-of-agreement with Planet QEOS Sdn Bhd to jointly develop a 310 MWp ground-mounted solar photovoltaic (PV) plant paired with a 620 MWh battery energy storage system (BESS) in Sarawak, Malaysia, in a project valued at about USD 276 Mn. Part of the same initiative is a 200 MW Green Data Centre Park (SDCP) on 350 acres in Baram.

The project is being designed as Malaysia’s first firm solar power plant, intending to provide renewable electricity on a continuous, dispatchable basis—similar to conventional gas and hydropower sources. The development supports Sarawak’s target of 10 GW electricity generation capacity by 2030 and aligns with ambitions for the Baram Special Energy Zone to become a major exporter of clean energy within ASEAN.

The consortium will move ahead with regulatory approvals, financial close, and definitive agreements, including the Power Purchase Agreement (PPA). It expects the green data centre park to play a critical role in enabling sustainable digital infrastructure while attracting foreign direct investment of over MYR 1 Bn (USD 220 Mn).

LEADER ENERGY TO DEVELOP 100 MW SOLAR FARM IN SARAWAK

Leader Energy (Sarawak) Sdn Bhd (LESSB), a subsidiary of Leader Energy Group Bhd, has signed a 30-year Power Purchase Agreement (PPA) with Sarawak Energy Bhd, via its retail arm Syarikat SESCO Berhad (SESCO), for the development of a 100MW large-scale solar farm in Tanjung Manis, Sarawak. The project is being implemented in collaboration with Pusaka Capital Sdn Bhd, a subsidiary of the Sarawak Timber Industry Development Corporation (STIDC), and Smartgen Energy Sdn Bhd.

Scheduled for completion by December 2027, the project will supply renewable power to SESCO, advancing Sarawak’s target of a low-carbon, sustainable energy mix. Leader Energy described the initiative as a key milestone for both the company and the state, highlighting its focus on capability transfer, local partnerships, and long-term value creation in Tanjung Manis.

MALAYSIA, SOUTH KOREA TO DEVELOP POME-BASED BIOGAS NETWORK

Malaysia-based Bioeconomy Development Corporation (Bioeconomy Corp) has entered into a partnership with South Korea’s Polaris Bio to establish a nationwide network of biogas facilities that will utilise palm oil mill effluent (POME) — a byproduct of palm oil processing — to produce renewable biogas. The initiative represents a major milestone in transforming Malaysia’s palm oil waste into a clean energy source.

The collaboration will begin with an initial investment of MYR 30 Mn (USD 7.17 Mn), with long-term plans to expand the network to more than 20 Bio-Compressed Natural Gas (Bio-CNG) plants, requiring a total investment of MYR 700 Mn (USD 167.34 Mn). Once fully operational, the network is projected to cut carbon emissions by 384,000 tonnes annually and generate internationally recognised carbon credits.

GAMUDA SIGNS PACT TO SELL EXCESS TREATED WATER TO PENANG FROM UPCOMING PERAK PLANT

The Perak State Development Corporation-Gamuda Bhd joint venture (PKNPk-Gamuda JV) and Penang Water Supply Corporation (PBAPP) signed a memorandum of understanding for the sale of excess treated water from the Northern Perak Water Supply Scheme (NPWSS) to Penang.

The MoU formalised a collaboration between the joint venture and PBAPP and established the terms for the sale of water to Penang, specifically the price, quantity and supply tenure. NPWSS is a strategic project to transfer 1,500 Mn of litres per day of raw water from Sungai Perak to the Bukit Merah dam, addressing demands for irrigation, domestic and industrial use, including the upcoming Kerian Integrated Green Industrial Park (KIGIP).

MALAYSIA ALLOCATES MYR 2.3 BN FOR AIRPORT UPGRADES UNDER BUDGET 2026

The government of Malaysia has earmarked MYR 2.3 Bn (USD 561.20 Mn) under Budget 2026 to upgrade key airports across Penang, Sabah, and Sarawak, with all projects expected to be completed by 2028. The Government announced that the allocation covers Penang International Airport, Kota Kinabalu International Airport, Tawau Airport, and Miri Airport, reflecting the government’s commitment to strengthening regional connectivity and airport capacity.

Further, the short take-off and landing ports (STOLports) in Marudi (Sarawak) and Redang (Terengganu) are also being upgraded, with completion targeted by 2027. To improve passenger experience, the Inter-Terminal Transfer Project linking KLIA Terminal 1 and Terminal 2 will be implemented, enabling seamless transfers and positioning the Kuala Lumpur International Airport as a world-class integrated hub.

In addition, the Selangor state government, together with Malaysia Airports Holdings Bhd (MAHB), is advancing the development of the Selangor Aero Park — a 600-acre logistics and cargo hub in Sepang designed to serve as a regional logistics gateway. The coordinated investments underline Malaysia’s strategy to expand airport infrastructure and logistics capacity to support long-term economic growth.

TNB AND STATE GRID CORPORATION OF CHINA TO ENHANCE POWER SYSTEM TECHNOLOGY IN MALAYSIA

Malaysia’s Tenaga Nasional Berhad (TNB) has signed a memorandum of understanding (MoU) with the State Grid Corporation of China (SGCC), represented by its wholly owned subsidiary China Electric Power Equipment and Technology Company Limited (CET), to advance technology cooperation in modern power systems. The partnership aims to support Malaysia’s grid modernisation and contribute to ASEAN’s broader vision of regional power interconnection. The collaboration will focus on three key areas — power system planning and integration, smart and resilient networks, and digital and artificial intelligence (AI) solutions — leveraging SGCC and CET’s expertise in new-type power systems and energy transition technologies.

Under the MoU, TNB and CET will form a joint working committee to monitor collaboration progress and coordinate technical exchanges. Planned activities include capacity-building sessions, technical study reports, and conceptual design support for pilot projects such as DC medium/low-voltage distribution networks and AI frameworks for grid operation. TNB will share technical information to support these initiatives, while CET will provide advanced technologies, standards, and project insights drawn from SGCC’s global operations.

NOVEMBER 2025

BUTTERWORTH KTM STATION TO BE UPGRADED IN MALAYSIA

Malaysia’s Transport Ministry will invest MYR 30 Mn (USD 7.25 Mn) to upgrade the Butterworth KTM station as part of the Fifth Rolling Plan of the 12th Malaysia Plan. The project aims to strengthen Penang Sentral as the main multimodal hub in Seberang Perai by integrating KTM Intercity, ETS, commuter rail, Penang ferry services, and the upcoming Mutiara Line LRT.

The upgraded station will support balanced regional development and enhance connectivity between Penang Island and Seberang Perai. The integration of three major modes at Penang Sentral is expected to position the area as a key focal point for mobility and economic activity.

Additionally, it was announced that Malaysia Airports Holdings Berhad (MAHB), together with the Penang government, will expand the air cargo terminal at Penang International Airport in Bayan Lepas. The expansion will double cargo aircraft parking capacity from three bays to six and will be complemented by a new logistics zone in Batu Maung for international operators. He reaffirmed federal commitment to the 29.5 km Mutiara Line LRT project—estimated at MYR 16 Bn (USD 3.87 Bn)—which will include 21 stations and extend service into Seberang Perai, acting as a catalyst for industrial and transport development across the state.

PHASE 1 OF GREEN TECH PARK LAUNCHED UNDER SILICON ISLAND DEVELOPMENT

Silicon Island Development Sdn Bhd has launched Phase 1 of the Green Tech Park, the flagship precinct within Penang’s Silicon Island smart city project. The 99-year leasehold industrial park will serve as a hub for high-value electronics and electrical (E&E) industries, with land development currently underway.

The Green Tech Park spans part of the 250 acres reclaimed so far under the Silicon Island reclamation works. The project integrates digital infrastructure, renewable energy, and sustainable design to attract industries in semiconductors, high-tech manufacturing, and medical devices. The first factories are expected to begin construction in 2026, with operations commencing by 2027. The broader Silicon Island development aims to strengthen Penang’s role as a global semiconductor and advanced manufacturing hub, complementing the existing Bayan Lepas Industrial Zone. It will also include the Heart of the Island (HOTI)—a mixed-use leisure and cultural district to enhance tourism and community engagement. Upon completion, Silicon Island will contribute to Penang’s economic diversification and align with the state’s sustainable development goals.

AIIB PARTNERS WITH MALAYSIAN BANKS FOR INFRASTRUCTURE PROJECTS

The Asian Infrastructure Investment Bank (AIIB) has signed cooperation agreements with Maybank, CIMB, AmBank and BPMB to jointly mobilise up to USD 6 Bn in financing for sustainable and technology-enabled infrastructure projects across the ASEAN.

Under these new partnerships, the institutions will support investments in sectors such as renewable energy, power transmission and distribution, transport, digital infrastructure and telecommunications. The initiative combines the Malaysian banks’ regional expertise in developing and managing large-scale infrastructure assets with AIIB’s capacity to provide long-term capital through both debt and equity financing instruments.

The collaboration will also contribute to advancing key regional infrastructure initiatives such as APG, a cross-border platform to strengthen energy interconnection and security within Southeast Asia. Through a Multiphase Programmatic Approach, AIIB intends to provide up to USD 2 Bn for APG-related investments in cooperation with both public and private sectors.

ALLIANCE BANK COLLABORATES WITH AQ ENERGY TO EXPAND SOLAR AND BATTERY SOLUTIONS TO SMEs

In a move to support the adoption of renewable energy transition, Alliance Bank Malaysia Berhad (Alliance Bank or the Bank) and AQ Energy signed a Memorandum of Understanding (MoU) to expand solar and battery solutions to SMEs.

The collaboration aims to drive the adoption of solar and Battery Energy Storage System (BESS) an emerging solution that represents the next evolution of solar energy. This will benefit SMEs and corporates particularly in sectors with high energy consumption, as BESS allows businesses to store excess solar energy generated during the day for use at night, while also helping to manage peak electricity demand during production hours. In essence, BESS can be seen as the next generation of solar technology.

The partnership presents a strong synergy as AQ brings its technical expertise in delivering solar and battery solutions, while Alliance Bank supports the financing needs of businesses keen to embrace cleaner, more efficient energy systems. Together, both parties aim to accelerate the transition towards sustainable energy solutions in Malaysia. The partnership targets the joint development, implementation, and financing of integrated solar and BESS projects with a cumulative capacity of up to 30MW and a total project value of up to RM 100 Mn (USD 24.2 Mn).

SECOND MALAYSIA–THAILAND FRIENDSHIP BRIDGE TO STRENGTHEN CROSS-BORDER TRADE

Construction of the second Muhibbah (Friendship) Bridge linking Rantau Panjang (Kelantan, Malaysia) and Sungai Golok (Narathiwat, Thailand) is underway to enhance cross-border trade, security, and tourism. The project, implemented under the Indonesia–Malaysia–Thailand Growth Triangle (IMT-GT) and Japan Development Support (JDS) framework, marks a major milestone in bilateral cooperation between the two countries.

The new bridge, designed as a 116-metre-long, 10-metre-wide T-beam girder structure, will include two traffic lanes, a covered pedestrian walkway, and motorcycle lanes to ease congestion at the existing crossing. Malaysia allocated RM 17.3 Mn (USD 4.19 Mn) for the works and began tendering in September 2025, while Thailand approved RM 23.2 Mn (USD 5.62 Mn) in April 2025. Each government is managing its own procurement and construction components through Thailand’s Ministry of Transport and Malaysia’s Public Works Department.

Additional infrastructure will include access roads — 80 metres of asphaltic concrete pavement on the Malaysian side and 100 metres of reinforced concrete pavement on the Thai side — alongside architectural, electrical, and safety enhancements. The Songkhla Highway Construction Centre will oversee related works, with State Railway of Thailand (SRT) land being utilised under a pending MoU.

PETRONAS, ENILIVE, EUGLENA BEGIN CONSTRUCTION OF MALAYSIA’S LARGEST BIOREFINERY

Petronas, in partnership with Enilive (the biofuels arm of Italy’s Eni) and Japan’s Euglena Company Limited, has commenced construction of a major biorefinery in Pengerang, Johor, under the Pengerang Biorefinery Sdn Bhd joint venture. The facility, located within the Pengerang Integrated Complex (PIC), will have the capacity to process up to 650,000 tonnes of renewable feedstock annually, including used cooking oils, animal fats, and other organic residues.

Scheduled to begin commercial operations in the second half of 2028, the biorefinery will produce sustainable aviation fuel (SAF), hydrogenated vegetable oil (HVO), and bio-naphtha. The project leverages PIC’s extensive infrastructure and proximity to international shipping routes. The broader Pengerang Integrated Petroleum Complex (PIPC), of which PIC is a part, represents Petronas’ largest downstream investment, valued at approximately USD 27 Bn.

BANDAR MALAYSIA REDEVELOPMENT SCHEDULED TO BEGIN IN 2026

Malaysia’s Ministry of Finance has confirmed that redevelopment of the Bandar Malaysia site is set to begin at the end of 2026. The redevelopment will be led by KLCC (Holdings) Sdn Bhd, a subsidiary of Petronas, and will be implemented in phases based on long-term commercial feasibility. The plan includes mixed-use components such as residential, commercial, affordable housing and recreational areas, with integrated pedestrian- and transit-friendly design as part of the updated masterplan.

Bandar Malaysia is envisioned as an inclusive, liveable urban hub with enhanced public transport connectivity. The review includes incorporating AI-enabled systems and broader smart city elements. The site had previously been earmarked for major transport links and large-scale urban development in Kuala Lumpur.

DECEMBER 2025

WORLD BANK BACKS 4 GW SOLAR-PLUS-STORAGE PROJECT IN MALAYSIA

The World Bank’s IFC will invest in the Southern Johor Renewable Energy Corridor (SJREC), a large-scale solar-plus-storage development totalling 4 GW of solar and 5.12GWh of battery capacity in Malaysia. The USD 6 Bn project spans about 2,000 sq km and is being advanced with Johor’s state investment arm of the Johor State Permodalan Darul Ta’zim (PDT) and Malaysian energy company Ditrolic Energy. It forms part of the ASEAN Power Grid Initiative, which seeks to expand cross-border renewable energy transmission across Southeast Asia.

SJREC is aligned with the Johor–Singapore Special Economic Zone masterplan and will be capable of delivering clean power to Singapore, a country dependent on imported energy and actively pursuing long-distance renewable import projects. The corridor also supports Johor’s Green Development Policy 2030, aimed at accelerating green industry expansion and renewable deployment in the state.

The project will supply renewable electricity to local and multinational companies in Johor, including manufacturers, hyperscale data centres, and other large energy consumers.

EMPYRION DIGITAL TO DEVELOP A 200 MW HYPERSCALE DATA CENTRE CAMPUS IN JOHOR

Singapore-based Empyrion Digital has received regulatory approval to develop a 200 MW hyperscale data centre campus in Johor, following clearance for its Electricity Supply Agreement and Data Centre Task Force application. The project, known as MY1 Johor Data Centre Campus, marks the company’s first entry into the Malaysian market.

The MY1 campus will be developed at Nusajaya’s SiLC Industrial Cluster on a 34.9-acre site and is designed as a 200+MW facility comprising five 40 MW buildings. The first phase is targeted to be ready for service in the Q4 of 2026, with initial energisation planned for September 2026. The project has secured an initial power allocation of 145 MW from Tenaga Nasional Bhd.

Johor is projected to account for around 60% of Malaysia’s total data centre capacity by 2030, driven by rising demand for hyperscale cloud and AI workloads and spillover demand from Singapore. The MY1 development will integrate with Empyrion Digital’s regional platform across Singapore, Seoul, Tokyo, Taipei and Bangkok, expanding its total regional IT capacity beyond 200 MW.

PRASARANA MALAYSIA TO DEPLOY 1,000 E-BUSES ACROSS KUALA LUMPUR AND PENANG

Prasarana Malaysia has outlined plans to deploy more than 1,000 electric buses across Kuala Lumpur and Penang under its long-term Sustainability Blueprint, as part of efforts to decarbonise public transport operations. The programme targets electrification of around 30% of its bus fleet and a 45% reduction in carbon emissions by 2030, with full transition to zero-emission bus operations by 2037.

The rollout will see approximately 1,100 electric buses introduced between 2025 and 2030 for Rapid KL and Rapid Penang services, alongside 150 electric feeder buses planned for the LRT Shah Alam Line. Prasarana currently operates 15 electric buses on the BRT Sunway Line, which have been in service since 2015. The transition will follow a final procurement of 310 diesel buses, scheduled for delivery in March 2026, marking the operator’s last acquisition of conventional vehicles.

Prasarana, a government-owned operator responsible for Rapid KL, Rapid Penang and Rapid Kuantan bus services, as well as key urban rail lines in Kuala Lumpur. In parallel, the company is strengthening internal capabilities through structured training programmes for drivers, engineers and depot staff, including safety protocols, high-voltage system handling, fire suppression awareness and emergency response procedures to support large-scale electric bus operations.

GIBO HOLDINGS PLANS 30 MW AI DATA CENTRE IN MALAYSIA, EYES 200 MW REGIONAL COMPUTE HUB

GIBO Holdings has announced plans to develop a high-performance artificial intelligence (AI) data centre in Malaysia, starting with a 30 MW facility featuring a 14,000-GPU supercomputing cluster. The project marks the first phase of the company’s strategy to build large-scale AI computing infrastructure in the country.

The proposed facility will be designed to support large language model training, small- and mid-sized model development, and large-scale AI inference workloads for commercial and public-sector users. The data centre will be optimised for deep learning, multimodal AI systems and advanced simulation workloads, incorporating liquid or immersion cooling systems suited to tropical operating conditions.

GIBO plans to scale the initial deployment into a 100 MW multi-zone AI campus and eventually a 200 MW flagship facility. The broader strategy includes developing a network of interconnected AI-focused data centres across Malaysia, linking regional markets including Singapore, Indonesia, Thailand, Japan, South Korea and Greater China.

GOOGLE SIGNS 30 MW SOLAR POWER AGREEMENT IN KEDAH

Alphabet Incorporation’s Google has signed a power purchase agreement to procure electricity from a 30 MW solar photovoltaic project in Malaysia, developed by a consortium led by a local unit of Japan-based Shizen Energy Incorporation. The agreement supports Google’s efforts to source clean energy for its regional operations and data centre footprint.

The solar project is located in Kedah state and is being developed under Malaysia’s green power framework for corporate energy procurement. The facility is expected to commence commercial operations in 2027 and will supply renewable electricity directly to Google under a long-term offtake arrangement.

The project forms part of Malaysia’s broader strategy to attract global technology companies by expanding access to renewable energy and reducing reliance on fossil fuels. For Google, the deal contributes to its global target of operating on 24/7 carbon-free energy, particularly in Asia-Pacific markets where grid decarbonisation remains challenging.

MELAKA TO PROPOSE PENGKALAN BALAK–INDONESIA BRIDGE PROJECT FOR NATIONAL REVIEW

The Melaka state government plans to submit a proposal to study a cross-border bridge linking Pengkalan Balak in Melaka with Indonesia to the National Physical Planning Council in January 2026. The state has allocated RM 500,000 (USD 122,955.90) to appoint a consultant to assess the technical feasibility, economic impact, and regional mobility benefits of the proposed bridge.

The proposed bridge would span approximately 47.7 km, representing the shortest distance between Melaka and Indonesia, with an estimated travel time of around 40 minutes. The feasibility study will examine engineering requirements, alignment options, traffic demand, and the bridge’s potential role in improving cross-border connectivity and logistics.

The project is being positioned as part of a broader regional development strategy. The Melaka state government is also planning to acquire around 5,000 hectares of land in Masjid Tanah for a new industrial zone, aimed at attracting domestic and international investment. The nearby Kuala Linggi International Port is expected to support the bridge project by strengthening maritime, industrial, and logistics linkages.

VCI ENERGY PLANS 250 MW SOLAR PROJECT TO SUPPLY AI DATA CENTRES IN MALAYSIA

VCI Energy, a renewable energy platform managed by VCI Global, has signed a memorandum of understanding (MoU) with DPS Energy, a subsidiary of DPS Resources, to develop a utility-scale solar photovoltaic project of up to 250 MW in Malacca, Malaysia. The project is intended to supply renewable power to data centres, utilities, and industrial users under long-term power purchase agreements.

The solar platform will be developed on approximately 600 acres of land and is designed to support up to 250 MW of installed capacity. Annual electricity generation is estimated at around 350–450 GWh, subject to final system design and grid conditions. The project is also being structured to allow future integration of battery energy storage systems.

The development aligns with Malaysia’s strategy to position itself as a regional hub for hyperscale data centres and AI infrastructure, while increasing the share of renewable energy in the national power mix. Malaysia has set targets to raise renewable energy capacity to 31% by 2025 and 40% by 2035, driving demand for large-scale clean energy projects to support digital and industrial growth.

SABAH PLANS 39 RAIL INFRASTRUCTURE PROJECTS UNDER 13th MALAYSIA PLAN

The Sabah state government has announced plans to implement 39 railway infrastructure projects between 2026 and 2030 under the 13th Malaysia Plan (13MP), aimed at strengthening the state’s transport network to support rising investment and economic activity. The programme will be led by the Sabah Railway Department (JKNS) following its transfer to the Ministry of Industrial Development, Entrepreneurship and Transport.

Of the total, eight projects are currently ongoing and are expected to be completed by the second year of the 13MP, while 24 new projects are scheduled to commence in 2026. The ongoing initiatives include slope and embankment repairs along the Beaufort–Tenom railway alignment to improve safety and service reliability, the procurement of two diesel multiple unit (DMU) non-powered cars and one locomotive to increase passenger and freight capacity, and a feasibility study with preliminary design works for a new rail link connecting Putatan with the Kota Kinabalu Industrial Park and Sepanggar Port.

In parallel, the state government has aligned port development with rail expansion by placing the Sabah Ports Authority under the same ministry. For 2026, priority will be given to accelerating the Sepanggar Bay Container Port capacity expansion project and addressing interim congestion issues. Additional maritime infrastructure upgrades, including jetty improvements, vessel traffic monitoring systems, and ferry terminal preparatory works, are also planned to ensure integrated transport development across Sabah.

List of key transactions - Malaysia Q4 2025

Source: YOG INFRA analysis

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