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Development of railway network in Sabah and Sarawak are under the responsibility and jurisdiction of the states goverment of Sabah and Sarawak. It is based on the List IIA - Supplement to State List for Sabah and Sarawak in the Ninth Schedule of the Federal Constitution which stipulates that matters relating to State Railway of Sabah and Sarawak was placed under the jurisdiction of the State Government respectively.


​​Project Alignment plan Short-term Rail Modernization in Sabah​​


However, the Federal Government is committed to assist the State Government in the development of the railway network system in Sabah and Sarawak. Therefore, the Federal Government has provided allocation to Sabah Railway Department for the work of short-term modernization of the existing railway network in 2005 with the total amount of RM335 million comprising RM133.8 million for the Tanjung Aru - Kimanis and RM201 million for the Kimanis - Tenom.

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