This article first appeared in The Edge Malaysia Weekly on October 13, 2025 - October 19, 2025

The yet-to-be completed Eastern Sabah Security Zone (ESSZone) security hub project on Mabul Island once again highlights the government’s weaknesses in implementing national projects, especially where national security is involved.

The delays to the ESSZone project, which was approved nearly 10 years ago, were primarily caused by the failure of its contractor, according to the Auditor General’s Report 2025 released last week.

Hartamas Borneo Sdn Bhd was supposed to complete the project within 36 months, or by Nov 16, 2024, at a cost of RM52.81 million. But it pulled out of the project in August 2023, citing rising costs, an unsuitable landing point and delays in obtaining land approval. It was only 41% completed by then, lower than the expected progress of 53%.

Notably, the project was already behind schedule for 254 days when the first scope — a Marine Police relocation building — was completed. Despite clear underperformance by then, the contractor was still allowed to continue with the project. Because of the delay, an additional cost of RM28.7 million is required to complete the project, said the report.

This is a very important project for the safety of the people on the east coast of Sabah, especially with the formation of the Eastern Sabah Security Command (ESSCOM) in the light of security threats from the southern Philippines. ESSCOM is aimed at boosting security in an area that spans 1,400km from Kudat to Tawau following the 2013 Lahad Datu incursion.

The client of the project is the Ministry of Home Affairs and ESSCOM, with the final user being the Marine Police. Did the home ministry and ESSCOM raise their concerns about the project when there were already major delays back in January 2022?

The project must continue in view of the security threat from the southern Philippines, but stricter monitoring of its execution must be put in place.

The question is, will Hartamas Borneo be held accountable for its underperformance?

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