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UNNES POLITICAL SCIENCE JOURNAL
https://journal.unnes.ac.id/journals/upsj
Unnes Political Science Journal 8(2) (2024) 54-66
Nusantara's Northern Neighbors: Brunei, Sabah, Sarawak, and the Prospects of a
Pan-Borneo Railway in ASEAN
Brice Tseen Fu Lee*
1,2
, Juan Pablo Sims
1,2
,
Hanzhen Ouyang
1
, Filip Komšić
1
, Salman Ali Bettani
1
1Fudan University, China
2Universidad del Desarrollo, Chile
Article Info
Abstract
Keywords
Borneo, Pan-Borneo
Railway, Nusantara
initiative, Northern
Borneo
development,
Southeast Asia
interdependencies,
Brunei, Sabah,
Sarawak
Borneo, the world's third-largest island, presents a unique intersection of diverse
ecosystems and indigenous cultures set within the complexities of Southeast Asia's socio-
economic and geopolitical fabric. This research delves into the developmental trajectories
of Sabah, Sarawak, and Brunei, emphasizing their historical resource endowments and
contemporary challenges. Positioned against the backdrop of Indonesia's Nusantara
initiative, which seeks to galvanize Kalimantan's growth, this study articulates strategic
pathways for the northern territories. Drawing from comprehensive evaluations, it bridges
the existing literature gap by integrating analyses of critical resources, exploring the
viability of the Pan-Borneo Railway, and examining its potential impacts. Moreover, it
provides comparative insights with other regional transport projects and underscores
Borneo's potential transformation into a pivotal trade nexus. The study culminates by
highlighting how fortifying Northern Borneo's capabilities could reciprocally amplify
Kalimantan's regional prominence. The research underscores the need for collaborative
imperatives and strategic integration.
* E-mail: briceleetseenfu@gmail.com
P-ISSN : 2549-0737
E-ISSN : 2621-6272
DOI 10.15294/upsj.v8i2.12129
Unnes Political Science Journal 8(2) (2024) 54-66
55
INTRODUCTION
Borneo, recognized in academic circles for its
extensive biodiversity and intricate amalgamation of
indigenous communities, occupies a critical juncture in
Southeast Asia's multifaceted economic and geopolitical
landscape. As the third-largest island globally, Borneo
encompasses territories of three sovereign entities:
Indonesia, Malaysia, and Brunei (King, 2016). The
northern precincts of Sabah, Sarawak, and Brunei have
historically manifested unique developmental trajectories,
replete with resource endowments such as petroleum and
timber. Yet, concurrently, they've navigated a complex
array of challenges, spanning infrastructural deficits to the
nuanced socio-political dynamics (Beeson, 2003). As
contemporary discourse sheds light on the reinvigoration
of Kalimantan, courtesy of Indonesia's Nusantara
initiative, it is indispensable to cognize the concomitant
implications for the northern territories. Kalimantan's
evolving narrative, while primarily a domestic
recalibration, has broader ramifications for the
overarching Southeast Asian paradigm, necessitating a
renewed scholarly inquiry (Wade, 2009).
Notably, a discernible lacuna in the extant literature
surfaces at this juncture. Comprehensive evaluations,
encompassing resource and economic analyses of Sabah,
Sarawak, and Brunei, are well-articulated. However, an
integrated appraisal, synergizing these evaluations with
emergent developmental paradigms, remains
conspicuously absent. This research endeavors to
assiduously bridge this academic void. Initiating with a
rigorous literature review, the study segues into an
examination of leveraging critical resources for holistic
development. It subsequently delves into the viability and
diverse ramifications—economic, social, and
environmental—of the proposed Pan-Borneo Railway (de
Bruyn et al., 2014). Comparative assessments vis-à-vis
regional transport initiatives, strategic blueprints tailored
for Northern Borneo's development, the envisaged
transformation of Borneo into a pivotal trade nexus
through integrated infrastructure, and attendant challenges
and considerations are meticulously probed. Culminating
this academic journey, the research elucidates potential
synergies wherein fortifying Northern Borneo could
reciprocally catalyze Kalimantan's growth.
In summation, this research transcends a mere
exploratory endeavor for Sabah, Sarawak, and Brunei. It
aspires to contribute substantively to the burgeoning
academic discourse on Southeast Asia's development
trajectory, emphasizing collaborative imperatives and
integrated strategic foresight in an era characterized by
intricate regional interdependencies.
Contextual Background
A Brief History of Economic and Infrastructural
Development in Sabah, Sarawak, and Brunei
The historical tapestry of economic and
infrastructural progression in Sabah, Sarawak, and Brunei
is a rich blend of native traditions, colonial influences, and
contemporary efforts. Sabah, originally known as North
Borneo, had its economic roots in agriculture, with rubber,
tobacco, and subsequently palm oil forming the mainstay
of its exports (Ruf & Siswoputranto, 2010). The advent of
the British North Borneo Company in the late 19th century
transformed the region's infrastructure, introducing rail
networks, improved harbors, and urban centers. Post-
independence, the discovery of offshore oil and gas
reserves in the late 20th century bolstered its economy,
necessitating the evolution of its transportation and refining
infrastructure.
Similarly, Sarawak, once under the rule of the White
Rajahs, experienced significant economic shifts.
Traditionally reliant on its forests, the state became a major
exporter of timber. The Brooke dynasty, ruling from the
mid-19th to the mid-20th century, laid the foundations of
modern infrastructure, from roads to airstrips. As with
Sabah, the discovery of hydrocarbons marked a
transformative period for Sarawak in the late 20th century,
leading to massive infrastructural projects like the Bakun
Hydroelectric Dam (Koh et al., 2023).
Brunei, on the other hand, has a distinct history. As a
sovereign sultanate, its wealth for many centuries was
derived from trade, leveraging its strategic position along
maritime routes. The discovery of oil in the early 20th
century dramatically altered its economic trajectory,
converting it into one of the world's wealthiest nations per
capita. This affluence funded a robust infrastructure drive,
from state-of-the-art medical facilities to expansive road
networks.
Indonesia's Nusantara Development and its
Implications for Northern Borneo
Indonesia's ambitious Nusantara initiative represents
a significant pivot towards the island of Borneo (Widodo,
2023). Envisioned as an expansive project, it includes the
relocation of the nation's capital to Kalimantan, promising a
flurry of infrastructural and economic activity in the
vicinity which would develop the Indonesia territory in
Borneo.
The ripple effects of this mega-project on the
northern parts of Borneo cannot be understated. First,
there's the potential of increased cross-border trade. As
Kalimantan sees an influx of businesses and industries,
Sabah, Sarawak, and Brunei can position themselves as
trading partners, benefitting from shared cultural and
geographical proximities. Second, the infrastructural surge
in Kalimantan might expedite regional infrastructure
projects in the northern regions. This could be in the form
of improved road networks, shared port facilities, or even
collaborative ventures in sectors like renewable energy,
given the shared environmental concerns across Borneo.
However, there are challenges too. The
environmental impact of rapid development in Kalimantan
may have repercussions across the island. Furthermore,
there's the potential of economic overshadowing, where
global investors might prioritize the bustling new capital
region over its northern counterparts. Yet, with strategic
planning and collaborative efforts, Sabah, Sarawak, and
Brunei have a unique opportunity: to complement the
Nusantara growth story and ensure that the entire island of
Borneo progresses in harmony.
56
Brice Tseen Fu Lee et al., Nusantara's Northern Neighbors Brunei, Sabah, Sarawak, and the Prospects …
Literature review
Brunei Darussalam
- Economic Profile
Brunei Darussalam, a prominent Southeast Asian
nation, derives its wealth primarily from an economy
deeply rooted in the oil and gas sector. As the fourth-
largest producer of oil in Southeast Asia, the country
produces about 167,000 barrels of oil and approximately
25.3 million cubic metres of liquified natural gas per day,
making it the ninth-largest gas exporter globally (U.S
Department of State, 2016). This dominance in energy
production has significantly shaped its economic
landscape, with crude oil and natural gas production
accounting for about 90% of its GDP (Tahir et al., 2022).
Nestled in the Belait district, the heart of its energy
industry, the nation's economic health is dictated. The
sector's contribution is staggering - providing 91% of total
commodity exports, offering 76% of government revenue,
and contributing to around 66% of the nation's gross
domestic product (Slesman et al., 2023). This economic
prowess, amplified by a substantial income from overseas
investments made primarily by the Brunei Investment
Agency, has positioned Brunei Darussalam as the fifth-
richest nation, according to Forbes (Too, 2012).
However, the nation's fiscal strength, driven by its
energy industry and overseas investments, sets it up to
potentially play a crucial role as a significant funder for
the proposed Borneo Union, facilitating various initiatives
such as infrastructure development and economic
integration. Despite its economic strengths, Brunei
Darussalam's heavy reliance on the oil and gas sector
makes its economy susceptible to global energy market
fluctuations (Kriskkumar & Naseem, 2019). Furthermore,
while the country has made strides in sectors like Islamic
banking, which can foster growth not only for Brunei but
also for regional economies (Ebrahim & Joo, 2001), there
remains a need for diversification. The significance of
diversification in ensuring sustainable economic growth is
evident in various economies, from African nations
(Hammouda et al., 2010) to countries like Oman, which is
still in the early phases of economic diversification
(Alshubiri et al., 2020).
- Resource analysis
Brunei Darussalam, a significant Southeast Asian
nation, has amassed considerable wealth from its thriving
oil and gas sector, enabling it to provide extensive social
welfare to its citizens. The state ensures a broad spectrum
of welfare benefits, including highly subsidized essential
goods and services, free healthcare and education, low-
cost housing, old-age pensions, and a complete absence of
income tax (Koh 2020). These generous provisions,
underpinned by the prosperity of the energy sector, have
sculpted a societal structure characterized by elevated
living standards, robust social security, and an absence of
public debt. According to the UNDP Human Development
Report (2023), Brunei Darussalam holds the esteemed
position of having the second-highest Human
Development Index among Southeast Asian nations,
surpassed only by Singapore. This remarkable rank
underscores the efficacy of its comprehensive welfare
provisions in ensuring a superior quality of life for its
inhabitants.
However, despite its affluence and advanced welfare
system, Brunei Darussalam remains heavily reliant on
imports, encompassing agricultural products, vehicles, and
electrical products. Notably, the nation imports 60% of its
food, with a significant 75% of that quantity sourced from
fellow ASEAN countries (Department of Economic
Planning Brunei, 2010). This import dependency, coupled
with the nation's significant economic reliance on natural
resources, presents both opportunities and challenges
(Tahir et al., 2022). For instance, while Brunei has made
strides in sectors like Islamic banking, which can foster
growth not only domestically but also regionally (Ebrahim
& Joo, 2001), there remains an imperative for
diversification. Such diversification efforts are evident in
other oil-rich nations, emphasizing the need to reduce
dependency on a single resource for economic
sustainability (Albassam, 2015).
In synthesizing this information, a holistic
understanding of Brunei Darussalam's economic profile
and social welfare system emerges as paramount. Such
comprehension is instrumental in delineating its potential
economic and social contributions on the global stage.
Equally, this insight is crucial for pinpointing and
preempting challenges that might arise in the future,
especially concerning the equilibrium of economic
advancement with social welfare.
Sabah, Malaysia
- Economic profile
Sabah, situated in Malaysia, covers an expansive
territory of nearly 73,904 square kilometers. Bordered by
the South China Sea to the west, the Sulu Sea to the
northeast, and the Celebes Sea to the southeast, Sabah's
geographical location has played a pivotal role in shaping
its economic trajectory. Historically, Sabah's economy was
anchored in rubber and copra cultivation. However, the
global demand for raw materials in the 1960s precipitated a
shift towards the timber industry. The subsequent discovery
of significant offshore oil reserves in the 1970s further
transformed the economic landscape, positioning petroleum
as a dominant sector. Concurrently, the cultivation of cocoa
and palm oil emerged as significant contributors to Sabah's
economic activities (Vincent & Mohamed Ali, 2005; Ruf &
Siswoputranto, 2010).
In the contemporary era, while Sabah's primary
industries remain rooted in agriculture, forestry, and
petroleum (Sabah State Government, 2023), there has been
a discernible pivot towards the tertiary sector. Tourism,
buoyed by Sabah's rich biodiversity, has emerged as a
cornerstone of the state's economy. The unique ecological
offerings have positioned Sabah as a prime destination for
ecotourism. In 2018, Sabah witnessed approximately
3,879,413 tourist arrivals, marking a 5.3% increment from
the preceding year. This surge in tourism, with a significant
influx from nations such as China, South Korea, Australia,
and Taiwan, underscores its role as a pivotal income
generator for the state (Sabah State Government, 2023;
Ripin & Raymond, 2011; Chan, 2019; Daily Express, 2016,
Unnes Political Science Journal 8(2) (2024) 54-66
57
Lee et al., 2024).
Recent studies have emphasized the importance of
economic diversification for nations and regions heavily
reliant on specific sectors. Diversification can bolster
social welfare in the long run and mitigate the risks
associated with over-reliance on a particular industry (Ali
& Cantner, 2020). In the context of Sabah, while the state
has made significant strides in sectors like tourism, there
remains an imperative to explore other avenues for
diversification. This is especially pertinent given the
global shifts towards sustainable practices and the
potential vulnerabilities associated with sectors like
petroleum.
Furthermore, the challenges and opportunities in
Malaysia's remanufacturing industries, as highlighted by
Heng Jong Ngu et al. (2020), provide insights into
potential areas for diversification and growth. The study
underscores the distinctive business environments in
Malaysia compared to developed countries, suggesting
avenues for tailored strategies in Sabah. In synthesizing
this information, it becomes evident that Sabah's
economic profile is multifaceted, with a rich history of
shifts and transformations. As the global economic
landscape continues to evolve, Sabah's continued growth
and prosperity will hinge on its ability to adapt, diversify,
and capitalize on emerging opportunities.
- Resource Analysis
Sabah's strategic geographical positioning,
enveloped by three seas, endows it with a plethora of
marine resources. This marine bounty has not only been
pivotal in shaping the state's economic trajectory but also
underscores its rich biodiversity (Ministry of Economy
Malaysia, 2023; Department of Fisheries Sabah, 2023).
The marine resources, however, are not without
challenges. Perceptions of marine resource declines and a
lack of livelihood flexibility have been noted, attributed to
the specialization of material assets and skills (Simard et
al., 2018).
Historically, Sabah's economic development in the
primary sector has been a magnet for job seekers from
neighboring regions like Indonesia and the Philippines,
underscoring the allure of its resource-rich profile
(UNESCO, 2005). The state's export portfolio, dominated
by raw petroleum and palm oil, offers a glimpse into its
abundant resource reserves (Daily Express, 2015). The
fisheries sector remains a linchpin in Sabah's economy,
annually contributing approximately 200,000 metric
tonnes of fish, which translates to about 2.8% of the state's
GDP (Department of Fisheries Sabah, 2023). The
petroleum sector, too, is robust, with Sabah producing
around 180,000 barrels of oil equivalent daily. A
significant portion of these oil and gas reserves are located
in the Sabah Trough basin on the west coast (Sabah State
Government, 2023; Suria Group, n.d.).
Infrastructure-wise, Sabah boasts eight operational
ports, a testament to its strategic geographical advantage
and its capability to facilitate substantial trade activities
(Suria Group, n.d.). However, the state's remaining
forests, which support a myriad of range-restricted
species, are under threat from agricultural expansion and
urban development, emphasizing the need for sustainable
resource management (Scriven et al., 2020). Recent
political developments in Malaysia underscore the
emergence of a "developmental State" that perceives
education as a tool for human resource development,
aligning with the nation's aspirations for rapid urbanization,
industrialization, and globalization (Lee, 1997). This
perspective is crucial when considering Sabah's resource
potential and its implications for human capital
development.
In light of the above, Sabah's resource profile is
multifaceted, with significant potential for economic
growth. However, the challenges posed by resource
depletion, environmental concerns, and the need for
sustainable management necessitate a holistic approach to
harnessing these resources for long-term prosperity.
Sarawak, Malaysia
- Economic Profile
Sarawak, the most expansive among Malaysia's 13
states, boasts a land area nearly equivalent to Peninsular
Malaysia. This vast geographical expanse has been pivotal
in fostering its multifaceted economic activities. Post the
formation of Malaysia, Sarawak's economic landscape
underwent a profound metamorphosis, largely propelled by
the surge in petroleum production and the simultaneous
escalation in global petroleum prices (Furuoka, 2014).
However, despite these economic strides, Sarawak's
economic fabric remains predominantly undiversified, with
a pronounced reliance on the export of primary
commodities. This economic structure starkly contrasts
with Malaysia's overarching economy, which has
progressively diversified into sectors like manufacturing,
services, and high-tech industries. Between 1970 and 1990,
Sarawak's per capita GDP trailed the national average,
highlighting the economic impediments it grappled with
during this epoch. Yet, the recent decades have heralded a
resurgence in Sarawak's economic fortunes. By 2021, the
state's GDP per capita ascended to RM 65,971 (US$
15,173), catapulting it to the third-highest position in
Malaysia (Sim, 2022). This economic renaissance can be
attributed to astute state policies and the judicious
exploitation of its copious resources.
Recent studies underscore the significance of foreign
direct investment (FDI) in shaping Sarawak's economic
trajectory. Between 2003 and 2008, Sarawak exhibited an
impressive economic performance, with growth rates
oscillating between 5.0% and 5.8%. Although 2009
witnessed a deceleration in growth, possibly due to global
economic vicissitudes, Sarawak's allure for foreign
investors remained undiminished. In that year, the state
clinched the lion's share of FDI among all Malaysian states
(Sarawak Government, n.d.). This influx of FDI
underscores Sarawak's burgeoning appeal to foreign
investors and its latent potential for future economic
expansion. Moreover, the state's ability to attract FDI is
indicative of its robust economic fundamentals, signaling
resilience and stability within Malaysia's broader economic
tapestry (Faheem et al., 2021).
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Brice Tseen Fu Lee et al., Nusantara's Northern Neighbors Brunei, Sabah, Sarawak, and the Prospects …
- Resource Analysis
Sarawak, with its vast natural resources, has been a
cornerstone of Malaysia's economic development.
Historically, the state's primary industries, including
mining, agriculture, and forestry, have been significant
contributors to its economic output. In 2013, these sectors
collectively represented a substantial 32.8% of Sarawak's
economic portfolio (Lord & Chang, 2019).
The state's prominence in the global timber
industry is particularly noteworthy. As a leading exporter
of tropical hardwood timber, Sarawak accounted for a
staggering 65% of Malaysia's total log exports in 2000
(Ross, 2021). However, the trajectory of the forestry
sector may be influenced by recent socio-political
developments, such as Sarawak's autonomous tendencies
over land use and international commitments like the No
Deforestation Peat and Exploitation (NDPE) policies
(Varkkey et al., 2018).
In the realm of agriculture, oil palm cultivation has
been gaining prominence. Sarawak stands as the leading
oil palm cultivator in Malaysia, boasting a plantation area
of 1.622 million hectares, which constitutes 28.6% of the
nation's total cultivated area (Tuah, 2023). Yet, the state's
agricultural practices, with their implications for
deforestation, necessitate a coordinated approach between
various sectors, including agriculture, livestock, land,
energy, and forestry (Doggart et al., 2020).
Sarawak's commitment to sustainable energy is
evident in its ambitious Sarawak Corridor of Renewable
Energy (SCORE) project. This massive infrastructure
development plan, valued at US $105 billion, is designed
to harness the state's hydroelectric potential, aiming to
generate 20,000 megawatts of power across a 320 km
corridor by 2030 (Sovacool & Bulan, 2012). Furthermore,
Sarawak's energy resources, especially petroleum, have
been pivotal in shaping its economic landscape. As of
2021, the state produced an impressive 2,800,000 barrels
of oil equivalent per day from its 150 oil and gas fields
(New Strait Times, 2017). This output, with crude
petroleum accounting for 45.1% of the state's total
production, underscores the significance of this resource
(Ross, 2001; Tuah, 2023).
Beyond these traditional sectors, Sarawak has been
diversifying its economic base, focusing on specialized
industries in the manufacturing sector, such as food and
beverages, wood-based products, and petrochemicals
(Lord & Chang, 2019). In conclusion, Sarawak's rich
resource base presents a myriad of developmental
opportunities. However, the state's future economic
trajectory will be determined by its strategic planning,
sustainable practices, and inter-sectoral coordination,
especially as the global focus shifts towards sustainable
development.
Harnessing Critical Resources for Holistic
Development: Insights from Literature
First and foremost, Sabah, Sarawak, and Brunei's
oil and gas sectors, particularly Brunei's oil reserves and
Sarawak's burgeoning LNG industry, are primary catalysts
for economic propulsion. With the energy sector's
revenue, these regions have the financial backbone to
invest in large-scale infrastructural projects like the
proposed railway (Tuah, 2023). Moreover, these energy
reserves, when coupled with improved transportation, could
fuel industries downstream, such as petrochemicals and
manufacturing, promoting a diversification of the economy
and reducing over-reliance on raw exports.
However, as Sovacool & Bulan (2012) emphasize,
the Nusantara initiative's developmental tide in Kalimantan
sets a precedent—a call for the Northern territories to adapt
and advance. In this context, the agricultural potential of
these regions, particularly Sabah's palm oil and rubber,
along with Sarawak's timber, can be harnessed more
sustainably. Efficient rail networks could reduce
transportation costs, making these products more
competitive in global markets. Additionally, improved
connectivity can facilitate value addition closer to the
source, ensuring that benefits percolate down to the local
communities, fostering inclusive growth.
The literature also hints at the socio-cultural richness
of these territories. With better transportation infrastructure,
there's an opportunity to boost eco-tourism and cultural
tourism ventures, capitalizing on the unique tapestry of
indigenous cultures and the breathtaking natural landscapes
of Borneo (Lord & Chang, 2019). Tourism, as an industry,
holds the promise of job creation, foreign exchange
earnings, and a diversified revenue stream.
Crucially, the literature underscores the importance
of collaborative growth strategies. Gone are the days when
isolated development was the norm. In the era of regional
blocs and shared aspirations, the key lies in cohesive
strategies. This proposed railway project, bolstered by the
critical resources of the regions, offers just that—a vision
of shared prosperity, mutual growth, and a brighter,
interconnected future for Sabah, Sarawak, and Brunei.
In conclusion, the resources highlighted in the
literature review are not mere commodities; they are
catalysts. They hold the promise of transforming the
developmental narrative of Northern Borneo, ensuring that
the regions do not merely partake in the ASEAN growth
story but play a pivotal, leading role in it.
Introduction to Railways as Catalysts: Railways
have historically been instrumental in driving economic
prosperity across regions. Their influence transcends mere
transportation enhancement, acting as conduits of growth
that invigorate cities, towns, and trade hubs. The First
Transcontinental Railroad in the United States as well as
Nordic States, established in the 19th century, not only
bridged the eastern and western coasts but also catalyzed an
era marked by economic expansion, urbanization, and
regional collaboration (Enflo et al., 2018). Similarly,
China's intricate railway matrix has been instrumental in
fostering economic collaboration, diminishing barriers, and
has been a cornerstone in the formation of China’s
integrated market framework (Li & Chen, 2019). In
essence, railways have consistently emerged as the nexus
of regional amalgamation, commerce, and augmented
socio-cultural interactions.
Unnes Political Science Journal 8(2) (2024) 54-66
59
Feasibility of the Pan-Borneo Railway:
• Geographical and Topographical
Considerations: Borneo, with its verdant tropical
rainforests, undulating terrains, and complex river
systems, poses unique challenges for railway
construction. While mountainous terrains might
necessitate intricate tunneling and viaducts, the
vast flatlands present opportunities for direct,
efficient rail pathways. Moreover, the island's rich
biodiversity mandates meticulous planning to
ensure minimal ecological disruption (Alamgir et
al., 2019).
• Economic Feasibility:
• Initial Investments: The preliminary
costs for such an expansive project would
be substantial, encompassing land
procurement, infrastructure development,
and technological acquisitions (de Rus
etal., 2023).
• Potential Returns: Immediate returns
could manifest in the form of enhanced
trade and transportation efficiency.
However, the long-term dividends include
regional development, augmented
property valuations along the route, and
novel business prospects (Wang et al.,
2023; Sims et al., 2023).
• Operational Costs: Recurring
expenditures would include maintenance,
personnel remunerations, and
technological advancements. These could
potentially be balanced by ticketing
revenues, freight tariffs, and ancillary
business opportunities (Izvarina et al.,
2023).
• Financing Models: A combination of
public-private partnerships, international
funding, and state investments could
distribute the financial burden and reduce
dependencies (Nash, 2017; Buier, 2020).
Economic Impacts of the Pan-Borneo Railway in
Sabah, Sarawak, and Brunei:
• Trade Efficiency: The establishment of a railway
system, historically, has been a significant catalyst
for economic growth and regional development.
Railways, often referred to as the arteries of
growth, have the potential to revitalize cities,
towns, and trade hubs. For instance, the First
Transcontinental Railroad in the United States in
the 19th century not only bridged the east and the
west but also sparked an era of unparalleled
economic expansion and urbanization. Similarly,
Europe's intricate railway network has been
instrumental in fostering economic cooperation,
reducing barriers, and shaping the European
Union's integrated market structure and this could
be applied to Sabah, Sarawak and Brunei (Wanke
et al., 2018). In the context of Sabah, Sarawak, and
Brunei, the Pan-Borneo Railway promises to
enhance trade efficiency significantly. Given the
richness of these regions in resources such as
petroleum, tropical hardwood timber, and
agricultural produce, a railway system can provide a
mechanism for rapid and large-scale movement of
these goods, potentially reducing logistical costs
and accelerating delivery times (Lord & Chang,
2019; Ross, 2021; Tuah, 2023). This enhanced
movement can not only foster intraregional trade
but also streamline the export process, especially
considering Sarawak's significant contribution to
Malaysia's petroleum and timber exports (New
Strait Times, 2017; Ross, 2021).
• Regional Development: Railways have historically
acted as catalysts for urbanization and regional
development. Drawing from other regions, areas
along railway corridors often experience a surge in
infrastructure development, commercial activity,
and urban growth. For Sabah, Sarawak, and Brunei,
this could translate into potential new urban centers,
businesses, and industries emerging along the
railway track (Ouyang et al., 2022; Sims et al.,
2023). Given the rich resources in these areas, one
can envision new processing hubs, manufacturing
units, and logistical centers emerging, capitalizing
on the easy transportation options (Furuoka, 2014;
Sim, 2022). Additionally, such development can
also stimulate tourism, especially considering the
unique cultural and natural offerings of these
regions.
• Employment: The employment opportunities
generated by the construction of the Pan-Borneo
Railway would be vast. The initial phases would
require a workforce for construction, ranging from
manual labor to skilled engineers. As reported,
projects like the Sarawak Corridor of Renewable
Energy (SCORE) have showcased the region's
capacity to handle large infrastructure projects
(Sovacool & Bulan, 2012). Beyond the construction
phase, the subsequent operation, maintenance, and
ancillary services related to the railway would
provide long-term employment opportunities for the
local populace. Such employment generation can
act as a significant boost for the economies of
Sabah, Sarawak, and Brunei, leading to improved
standards of living and prosperity.
Social Impacts of the Pan-Borneo Railway in Sabah,
Sarawak, and Brunei:
1. Enhanced Regional Connectivity: The
establishment of a comprehensive railway system is
anticipated to significantly augment movement
across Sabah, Sarawak, and Brunei. Beyond the
apparent transportation benefits, such enhanced
connectivity can engender a profound sense of unity
and foster a shared regional identity among these
territories. This interconnectedness can serve to
further intertwine the socio-cultural fabric of these
regions, emphasizing their collective identity while
still celebrating their unique individualities (Wang
et al., 2009; Kasraian et al., 2016).
60
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2. Patterns of Urbanization and Migration:
Historically, transportation infrastructures,
especially railways, have catalyzed urban growth
and have played pivotal roles in delineating the
spatial distribution of populations (Kasraian et al.,
2016; Liu & Su, 2021). With the introduction of
the Pan-Borneo railway, one could foresee the
emergence or expansion of urban hubs adjacent to
pivotal railway stations. These hubs could attract
migratory patterns, either for employment
opportunities or enhanced living standards, thereby
reshaping the demographic landscape of Sabah,
Sarawak, and Brunei. Such dynamics would need
careful planning and foresight to ensure
sustainable urban growth, minimizing potential
strains on resources and infrastructure.
3. Cultural Exchange and Synergy: Enhanced rail
connectivity is not just a conduit for goods and
services but also for cultural exchanges. By
facilitating more streamlined and accessible travel
routes, the railway can become a catalyst for
increased interpersonal interactions, cultural
exchanges, and socio-cultural collaborations
between the states. This could lead to a vibrant
melting pot of traditions, ideas, and innovations,
fostering an environment of mutual respect,
understanding, and shared aspirations among the
people of Sabah, Sarawak, and Brunei (Dolinayova
et al., 2018).
In conclusion, the holistic integration of a railway
system presents not just tangible economic gains but also
carries the promise of sculpting a cohesive,
interconnected, and culturally vibrant Northern Borneo.
Environmental Impacts:
1. Sustainable Development and Rail Transport:
Railways, as a mode of transportation, are often
recognized for their environmental efficiency.
They offer a more sustainable alternative to road
transport, producing considerably fewer
greenhouse gas emissions per unit of cargo or
passenger count compared to road vehicles (Lord
& Chang, 2019). The transition to rail can also
alleviate road congestion, indirectly reducing
emissions from automotive traffic. This aligns with
findings that highlight the environmental
advantages of railways over other forms of
transportation, especially in terms of carbon
emissions (Lord & Chang, 2019; Sezer &
Fredriksson, 2021).
2. Anticipated Environmental Challenges:
Constructing a new railway system, especially in
biodiverse regions like Sabah, Sarawak, and
Brunei, can pose environmental challenges. The
initial construction phase might lead to habitat
disruptions, deforestation, fragmentation of
wildlife habitats, and greenhouse gas emissions
from construction activities (Chen et al., 2020).
Additionally, indirect impacts, such as noise and
vibrations, can adversely affect local fauna,
potentially altering their behavior and reproductive
patterns (Barrrientos et al., 2017).
3. Proactive Mitigation Measures: Given the
potential environmental challenges, it's essential to
incorporate robust mitigation strategies from the
project's inception. One such strategy is the creation
of green corridors, which involves planting native
vegetation along railway tracks, aiding in carbon
sequestration and promoting biodiversity. Wildlife
crossings, like overpasses or underpasses, can
ensure safe animal transit, reducing railway-related
casualties. Sustainable construction practices, such
as using recycled or locally sourced materials and
employing energy-efficient machinery, can further
minimize the environmental footprint of the
construction phase (Alwisy et al., 2018).
In conclusion, while the Pan-Borneo railway
presents numerous opportunities for sustainable
development and regional integration, it's imperative to
approach its construction with a keen eye on environmental
preservation. By adopting a balanced strategy that
emphasizes both development and conservation, the
railway can indeed serve as a model of sustainable
infrastructure in the region.
Comparisons to Other Regional Transport Projects:
1. Belt and Road Initiative (BRI) - China's Global
Rail Blueprint: The Belt and Road Initiative (BRI),
spearheaded by China, is a monumental
infrastructure project aiming to connect China to
Europe, Africa, and other regions through a vast
network of railways, roads, and maritime routes.
Central to the BRI is the emphasis on rail
infrastructure, with transformative projects like the
China-Europe Railways and the China-Laos
railway. These rail projects have not only enhanced
trade but have also been instrumental in socio-
economic development, spurring urbanization, job
creation, and regional integration (Yang & Zeng,
2019; Oliveira et al., 2020; Sims et al. 2023; Lee &
Sims, 2023; Lee & Sims, 2024).
2. Lessons for Northern Borneo: While the BRI has
achieved significant successes, it also presents
cautionary insights. Some regions connected by the
BRI have faced challenges related to debt,
environmental concerns, and equitable development
(Lai, 2020; Aung et al., 2020). For the Pan-Borneo
Railway, key takeaways include:
a. Financial Prudence: Ensuring sustainable
financing models that avoid excessive debt burdens.
b. Inclusive Growth: Emphasizing the welfare of
local communities, ensuring they benefit from the project,
and preventing unjust displacement.
c. Environmental Foresight: Incorporating
measures to safeguard the region's biodiversity and natural
resources.
d. Transparent Governance: Prioritizing
transparent processes, effective project management, and
robust feedback mechanisms.
Unnes Political Science Journal 8(2) (2024) 54-66
61
The Pan-Borneo Railway, inspired by global
projects like the BRI, holds the potential to be a
transformative force for Sabah, Sarawak, and Brunei. By
learning from global experiences, the railway can serve as
a catalyst for integrated regional development, promoting
economic growth, social cohesion, and environmental
sustainability. This vision of holistic progress can position
the Pan-Borneo Railway as a cornerstone for the future of
Northern Borneo in the ASEAN context.
Strategies for Development in Northern Borneo:
The development of Northern Borneo, specifically
the regions of Sabah, Sarawak, and Brunei, requires a
comprehensive approach that synergizes traditional
strengths with innovative strategies. A central tenet of this
strategy is the judicious utilization of the regions'
abundant natural resources. Given the richness in
petroleum, timber, and fertile agricultural lands, it is
paramount for these areas to adopt a diversified resource
management strategy. For instance, while Brunei's
economic foundation has been petroleum, diversifying
into agro-based industries can offer resilience against the
volatile global oil prices. Similarly, Sarawak's timber
industry can transition from predominantly raw timber
exports to value-added products like high-quality
furniture, thereby enhancing revenue streams (Lord &
Chang, 2019). Moreover, the significance of agriculture,
especially Sarawak's dominance in oil palm cultivation,
underscores the importance of innovative and sustainable
farming practices (Tuah, 2023).
Integrating these traditional sectors with modern
technologies and sustainable practices is crucial for
holistic development. This means envisioning urban
centers in Sabah, Sarawak, and Brunei that utilize
technology for efficient resource management, traffic
control, advanced waste disposal, and enhanced citizen
services. Commitment to sustainability, as evidenced by
green construction codes and wastewater management, is
essential for the stewardship of the region's biodiversity
and ecological heritage (Perrings & Ansuategi, 2000).
Additionally, emphasizing research and development can
lead to innovations tailored to the region's unique
challenges, fostering advancements in agriculture, energy,
and logistics.
External collaborations also hold significant
potential. Strategically positioned within Southeast Asia,
Northern Borneo should cultivate ties with its ASEAN
counterparts to streamline trade regulations, enhance
transportation networks, and facilitate mutual investments.
Beyond ASEAN, international partnerships with
technologically advanced countries or financial
strongholds can be explored. Public-private partnerships
can also play a pivotal role in infrastructure development
and service delivery, ensuring quality without
overburdening the state's resources (Zameer et al., 2020;
Yuan & Lee, 2023).
In conclusion, the development narrative of Sabah,
Sarawak, and Brunei is one of equilibrium. It's about
leveraging their natural and cultural wealth while charting
an innovative, sustainable, and inclusive path forward in
the evolving ASEAN landscape.
Borneo as a Nexus for Trade: The Dual Power of Rail
and Highway Infrastructure
The strategic positioning of Borneo, flanked by the
vastness of the South China Sea and the Celebes Sea, has
historically rendered it an epicenter of maritime trade in
Southeast Asia. Yet, envisioning Borneo as a contemporary
hub for regional and international trade necessitates more
than just leveraging its maritime prowess. The combined
strength of an expansive railway network, coupled with the
already established highway infrastructure, could position
Northern Borneo—comprising Sabah, Sarawak, and
Brunei—as a veritable nexus for trade and transportation in
the region.
Imagine a scenario where international shipments,
instead of embarking on prolonged sea voyages across the
vast expanse of the Pacific or the intricacies of the Malacca
Straits, opt for Borneo as a midpoint layover. Goods could
be offloaded at one of the island's strategically located port
cities, then swiftly transported across the island using the
seamless integration of rail and road networks, only to be
reloaded onto another vessel on the opposite coast for the
remainder of their journey. Such a logistical configuration
could offer considerable savings in terms of time and fuel
costs, translating into economic efficiencies and reduced
carbon emissions.
The underlying logic here isn't just about geographic
shortcuts, but also about capacity-building and congestion
management. Major maritime routes in the region, notably
the Malacca Straits, grapple with congestion and associated
risks (Levesque, 2008). Borneo, with its dual transport
infrastructure, could act as a pressure release valve,
absorbing a portion of this maritime traffic and facilitating
smoother, more efficient transport flows. Furthermore, the
establishment of Borneo as a trade nexus would not only
bolster its own economy through increased port activity,
warehousing, and logistics services but would also catalyze
the development of ancillary industries, from
manufacturing to trade services. The multiplier effect on
the local economies of Sabah, Sarawak, and Brunei could
be profound, with new employment opportunities,
increased foreign investment, and a strengthened position
in regional trade negotiations.
However, while the prospects are enticing,
actualizing this vision requires meticulous planning,
significant investment, and concerted regional
collaboration. Port infrastructure would need enhancements
to handle increased cargo volumes, customs and trade
protocols would require harmonization for seamless
transfers, and most crucially, a consistent marketing and
stakeholder engagement effort would be imperative to gain
the trust of international shippers and traders. In essence,
the idea of melding rail and road to transform Borneo into a
trade linchpin represents a fusion of historical legacy and
modern innovation. With careful execution, Northern
Borneo could reclaim its position as a central pivot in the
trade dynamics of Southeast Asia and beyond.
Harnessing Critical Resources for Holistic
Development: Insights from Literature
Borneo's Northern territories—Sabah, Sarawak, and
Brunei—have always been a treasure trove of resources. As
underscored by literature, these regions hold a myriad of
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Brice Tseen Fu Lee et al., Nusantara's Northern Neighbors Brunei, Sabah, Sarawak, and the Prospects …
potential, from rich petroleum reserves to a diverse array
of agricultural outputs, all of which offer substantial
opportunities for development (Lord & Chang, 2019).
Yet, it is the strategic leverage of these resources, in
tandem with infrastructural innovations, that will catalyze
true transformative growth for these territories.
First and foremost, Sabah, Sarawak, and Brunei's
oil and gas sectors, particularly Brunei's oil reserves and
Sarawak's burgeoning LNG industry, are primary catalysts
for economic propulsion. With the energy sector's
revenue, these regions have the financial backbone to
invest in large-scale infrastructural projects like the
proposed railway (Tuah, 2023). Moreover, these energy
reserves, when coupled with improved transportation,
could fuel industries downstream, such as petrochemicals
and manufacturing, promoting a diversification of the
economy and reducing over-reliance on raw exports.
However, as Sovacool & Bulan (2012) emphasize,
the Nusantara initiative's developmental tide in
Kalimantan sets a precedent—a call for the Northern
territories to adapt and advance. In this context, the
agricultural potential of these regions, particularly Sabah's
palm oil and rubber, along with Sarawak's timber, can be
harnessed more sustainably. Efficient rail networks could
reduce transportation costs, making these products more
competitive in global markets. Additionally, improved
connectivity can facilitate value addition closer to the
source, ensuring that benefits percolate down to the local
communities, fostering inclusive growth.
The literature also hints at the socio-cultural
richness of these territories. With better transportation
infrastructure, there's an opportunity to boost eco-tourism
and cultural tourism ventures, capitalizing on the unique
tapestry of indigenous cultures and the breathtaking
natural landscapes of Borneo (Lord & Chang, 2019).
Tourism, as an industry, holds the promise of job creation,
foreign exchange earnings, and a diversified revenue
stream.
Crucially, the literature underscores the importance
of collaborative growth strategies. Gone are the days
when isolated development was the norm. In the era of
regional blocs and shared aspirations, the key lies in
cohesive strategies. This proposed railway project,
bolstered by the critical resources of the regions, offers
just that—a vision of shared prosperity, mutual growth,
and a brighter, interconnected future for Sabah, Sarawak,
and Brunei.
In conclusion, the resources highlighted in the
literature review are not mere commodities; they are
catalysts. They hold the promise of transforming the
developmental narrative of Northern Borneo, ensuring
that the regions do not merely partake in the ASEAN
growth story but play a pivotal, leading role in it.
Challenges and Considerations
The ambitious vision for the development of
Northern Borneo, encompassing Sabah, Sarawak, and
Brunei, is replete with potential. However, with such
potential come inherent challenges that need astute
recognition and strategic management. At the heart of
these challenges lies the delicate balance between rapid
infrastructural growth and environmental stewardship.
Borneo, often hailed as one of the world's richest reservoirs
of biodiversity, is home to unique ecosystems, from dense
rainforests teeming with endemic species to pristine marine
habitats. Developmental projects, particularly expansive
ones like railway networks or urban hubs, pose risks of
deforestation, habitat destruction, and ecological disruption.
The challenge, then, is to craft an environmentally-
conscious development blueprint—one that mitigates
impacts, integrates sustainable practices, and upholds the
island's environmental legacy (Sezer & Fredriksson, 2021).
Parallel to environmental concerns are the socio-
cultural implications associated with swift modernization.
As historically rich regions, Sabah, Sarawak, and Brunei
possess intricate tapestries of cultures, traditions, and
indigenous knowledge systems. Rapid urbanization and
development can inadvertently lead to cultural
homogenization, potentially sidelining indigenous voices
and erasing nuanced local identities (Chen et al., 2020). It
becomes imperative to ensure that the development
narrative is inclusive, recognizing and valuing the
contributions and rights of all community segments.
Furthermore, there's a need to educate and prepare the local
populace for transitions, offering skill-building
opportunities and platforms for cultural expression.
From an economic perspective, challenges are
multifaceted. Foremost is the matter of funding. Ambitious
development projects require substantial capital investment,
and while the promise of long-term returns is considerable,
the immediate financial burden cannot be understated.
Exploring diverse funding sources, from regional
collaborations to international financial institutions,
becomes a priority. Additionally, there's the challenge of
ensuring that the economic growth is equitable. The
disparities between urban and rural, rich and poor, can
widen in the wake of large-scale projects unless there are
robust policies and mechanisms in place to ensure wealth
distribution, social welfare, and inclusive opportunity
creation (Duque et al, 2023).
In sum, while the path to Northern Borneo's
progressive future is laden with promise, it's also
interspersed with challenges that require thoughtful
deliberation. Addressing these challenges is not just about
achieving development goals but about crafting a legacy—
a legacy of balance, inclusivity, and holistic progress.
Mutual Growth Synergies: The Development of
Northern Borneo Boosting Kalimantan
Borneo's geographical unity, despite its political
divisions, is an intrinsic quality that cannot be overlooked.
The island's territorial mosaic, composed of Indonesia's
Kalimantan and the Northern territories of Sabah, Sarawak,
and Brunei, offers unique opportunities for mutual growth.
The development of the Northern territories, while
primarily geared towards their own socio-economic
enhancement, can inevitably pave the way for substantial
benefits for Kalimantan as well.
Firstly, the infrastructural development in Sabah,
Sarawak, and Brunei would create an interlinked network
throughout Borneo. Railways, roads, and improved port
facilities in the Northern territories would complement
Kalimantan's initiatives, allowing for a seamless flow of
Unnes Political Science Journal 8(2) (2024) 54-66
63
goods, services, and people across the island. This
enhanced connectivity would mean that Kalimantan
would not just be looking southwards towards Java and
Sumatra for trade and cultural exchanges, but also
northwards, creating a dynamic, two-front growth
momentum. Further, the economic resurgence of the
Northern territories would increase the demand for
various goods and services that Kalimantan can supply.
With its rich mineral resources, agricultural produce, and
burgeoning manufacturing sector, Kalimantan could find
eager markets in Sabah, Sarawak, and Brunei, especially
as they undergo rapid urbanization and infrastructural
expansion.
Tourism presents another symbiotic opportunity.
With the Northern territories developing their tourism
potential around eco-tourism and cultural tourism,
Kalimantan, with its vast natural landscapes and
indigenous cultures, could create joint tourism packages.
Such collaborations could extend tourists' stay durations,
making Borneo an even more attractive destination for
global travelers. Moreover, the rise in foreign direct
investments (FDI) targeting Sabah, Sarawak, and Brunei
due to their infrastructural and economic development
could have a ripple effect on Kalimantan. Observing the
stability, growth potential, and the successful execution of
large-scale projects in the North could boost investor
confidence in the entire island, driving more investments
towards Kalimantan.
Lastly, shared challenges, particularly
environmental and socio-cultural ones, necessitate
collaborative solutions. The efforts of Sabah, Sarawak,
and Brunei in sustainable development, conservation, and
inclusive growth could serve as templates or models for
similar initiatives in Kalimantan. Joint research, shared
expertise, and collaborative ventures in areas like
sustainable forestry, wildlife conservation, and indigenous
rights could be mutually beneficial. In essence, Borneo's
growth story isn't about isolated progress, but about
mutual synergies. The prosperity of Sabah, Sarawak, and
Brunei isn't just their own triumph; it's a beacon for
Kalimantan's potential rise, underpinning the adage that in
unity, there's undeniable strength. The growth of the
Northern territories could very well be the tide that lifts all
boats, heralding a brighter future for the entire island of
Borneo.
CONCLUSION
Borneo, as a unique tapestry of culture, geography,
and potential, stands at an unprecedented juncture in its
historical trajectory. The intricate interplay between its
northern regions of Sabah, Sarawak, and Brunei and
Indonesia's Kalimantan presents a vivid tableau of
challenges juxtaposed with boundless opportunities. As
the discourse around Borneo's future evolves, it's
imperative to recognize that isolated strategies of
development are no longer tenable. Instead, the way
forward is embedded in integrated visions, collaborative
efforts, and shared aspirations.
The exploration of a Pan-Borneo transportation
system, notably the envisioned railway, holds the promise
of not only knitting together the disparate regions of the
island but also transforming Borneo into a nexus for
regional trade and cooperation. The strategic location of
Borneo, flanked by the vast economies and markets of
Southeast Asia, positions it as a potential fulcrum for trade
and cultural exchange. Leveraging this geographic
advantage, combined with the wealth of resources as
highlighted in the literature review, could propel the entire
island into a new era of prosperity.
The mutual growth synergies between the northern
territories and Kalimantan are undeniable. While the
development initiatives in Sabah, Sarawak, and Brunei seek
to carve out their niche in the Southeast Asian narrative,
they inadvertently boost the prospects for Kalimantan. It's a
testament to the interwoven destinies of Borneo's
territories. Yet, amid this enthusiasm, it's vital to tread with
caution. The environmental sanctity of Borneo, its rich
biodiversity, and the rights and traditions of its indigenous
communities must be safeguarded. The development
narrative should be underpinned by principles of
sustainability, inclusivity, and foresight.
In conclusion, Borneo's future beckons with
promise. Harnessing its resources judiciously, fostering
regional collaboration, and embedding sustainability at the
heart of development strategies could make Borneo not just
an economic powerhouse but a beacon for harmonious,
inclusive, and sustainable growth in Southeast Asia. The
journey for Borneo is as much about its economic ascent as
it is about reaffirming its identity, cherishing its heritage,
and carving out a future that's resilient, prosperous, and
reflective of its intrinsic values.
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