Sarawak has a long history of doing informal trades, now experiencing healthy growth through the framework of BIMP-EAGA, with Kalimantan Barat and Brunei. Undoubtedly, the launching of BIMP-EAGA or B – East Asia Growth Area in 1994 has not only formalized but helped the of growth of border trades which are sprouting along Sarawak-Kalimantan border.
BIMP-EAGA was launched in 1994 as a co-operation initiative by Brunei Darussalam, Indonesia, Malaysia and the Philippines, all of which are member countries of the regional Association of Southeast Asian Nations (ASEAN).
Its primary objective is to accelerate economic development in the focus areas, which are geographically distant from their national capitals. However, they are in strategic proximity to each other, in one of the world’s most resource-rich nations. The BIMP-EAGA initiative is market driven and operates through a decentralized organizational structure that involves four governments and the private sector.
The BIMP-EAGA co-operation aims to increase trade, tourism and investments in and outside the sub-region by facilitating free movement of people, goods and services, making the best use of common infrastructure and natural resources and taking the full advantage of economic complementation.
It covers a land area of 1.6 million square kilometers and has a combined population of 57.5 million. It comprises the entire sultanate of Brunei Darussalam, the provinces of Kalimantan, Sulawesi, Maluku, West Papua and Irian Jaya of Indonesia, Sarawak, Sabah and Federal Territory of Labuan in Malaysia and the Island of Mindanao and the province of Palawan in the Philippines as focus areas.
BIMP-EAGA has a long history of participation in the global economy, stretching back to the silk route and spice trade between Europe, China and other parts of Asia. Obviously, EAGA supplies the export markets of ASEAN North and South Asia and the Middle East following the expansion of air, shipping and land transport links and the development of investment incentives.
Sarawak’s boundary with Kalimantan Barat is porous and being punctuated by lots of access roads (Jalan Tikus as they are locally known). Hence, cross border trades are sprouting in places like Biawak in Lundu, Serikin in Bau, Tebedu in Serian, Sadau in Lubok Antu and other places.
The border trade at Serikin, a small border village of Sarawak with Indonesia is the most popular one and arguably better organized than Padang Besar near Perlis. During the weekends traders from across the border and nearby areas come to offer their wares and produce. They hawk authentic Indonesian sarongs, household items and food ranging from farm produce such as vegetables and fruits to dried seafood and meats.
It takes about 90 minutes to drive from Kuching city to Serikin, which is located about 15Km from Bau town and 80Km from Kuching city. Along the way, there are makeshift roadside markets selling anything from antiques to wild ornamental plants, exotic orchids to exotic fruits to all types of fragrant locally grown rice.
Until the late 90s, Tebedu was the focal point of border trade between Kalimantan and Sarawak. However, the border town in Serian district changed role with the operation of Tebedu Inland Port, the first and only inland port in Sarawak since 2004.
The Inland port is situated about 85Km from Kuching city and 1Km from West Kalimantan –Sarawak border. The State government’s primary objective to set up the inland port is to monitor, regulate and control the movement of goods in order to facilitate and increase border trade.
This initiative, in conjunction with the development of Tebedu Industrial estate and new Tebedu township, should have multiplier effects in regional economic development for benefits of peoples on both sides of the border. Tebedu Industrial estate caters for light industries for both international and domestic export. It also caters for downstream industries in West Kalimantan.
Tebedu Inland port has ample facilities to accommodate cargoes in transit. As a licensed public bonded warehouse, cargoes in transit at the port en route for international markets do not have to pay customs duties, which are only payable when the goods are meant for consumption in Sarawak.
The border trade between Sarawak and Brunei in the 60 and early 70s was mainly around Tamborang. Since the early days, the people from Brunei come to Limbang, which they still do until now for the weekends or public holidays. However, with better road systems on both sides of the border and lesser restrictions for border crossings more and more of them come to Miri and to visit places like Bekenu, Niah, Sibuti and others.
The cross border road network was further enhanced with the operation of Batang Baram bridge, renamed ASEAN bridge since August 2003. The bridge, the longest in Miri division, is located approximately 2Km upstream of Miri Port complex. The bridge and access road directly link Sarawak with Brunei across Batang Baram via the existing Immigration Checkpoint at Sungei Tujuh.
Chief Minister, Pehin Sri Haji Abdul Taib Mahmud, who is a firm believer of the philosophy of proper thy neighbor, is happy that Indonesia is getting more buoyant nowadays. It is much better than before. Obviously, it started to have the economic waves during the last 10 or 15 years ago.
Sarawak is working closely with Brunei on the generation of electricity in Ulu Limbang/Ulu Lawas region. Both countries are working together to develop hydroelectricity dam in Ulu Limbang and part of the energy will be funneled to Brunei through grids all over. The electricity line that has been agreed by both countries will give some flexibility on the setting up of factories later. As Brunei is still rich in oil and gas, it does not need so much extra energy yet.
Pehin Sri Abdul Taib says Sarawak may consider sharing its expertise with Brunei on land development. Understandably, Brunei is keen to develop Tamburong, a sizeable area near Limbang and Lawas with a small population of about 4,000 people. Obviously, the area is sparsely populated and may be opened up for oil palm estates, which Sarawak finds quite easy to organize. In any case, both Sarawak and Brunei don’t need the development of labor intensive industries.
He is prepared to seek greater co-operation with Brunei on any other projects as he believes in good co-operation with neighbors. Besides, he shares Brunei’s interest in development and co-operation through the framework of BIMP EAGA. Obviously, Brunei wants to use its wealth to diversify the economy, which has been dependent on oil and gas.
The country has invested heavily on education that it has got a very high level of education among ASEAN countries. Generally, its economy is quite strong. It has no problem of poverty and the infrastructure is good. However, there is a growing realization among the leaders of the necessity to use the wealth to diversify the economy.
Pehin Sri Abdul Taib says most industries to be developed in Sarawak towards the year 2030 will bring the level of pay, which companies feel competitive at the world level. More companies will come to Sarawak because of the relative low costs of energy; they will not come for cheap labor. Generally, if they are attracted to Sarawak, they will also be attracted to Brunei; Sarawak and Brunei are natural partners.
He says the State government is pursuing the step by step approach in the development of pharmaceutical industry, which is a long drawn affair. He is not sure whether the industry can attract investors. There are few things being experimented based on sago products but they are still far from the end.
He believes in a couple of years, Sarawak may have clinical tests on one of the components for AIDS; the research has been going on for some time already. Besides, the State has already identified a compound for diabetes but the test is still at preliminary stage.
Generally, Sarawak, though the biodiversity centre, is working on folklores to identify herbs that have been used since the days of the ancestors for different diseases. The state government wants to do scientific experiments on them to determine the foundation why they have been good for certain diseases.
Generally, the fight for developing new drugs is very stiff. However, the State has the ability to go ahead with the development of pharmaceutical industry as part of the overall program to diversify the economy towards the year 2030 and beyond. Actually, the State has been doing a few things but some of the research works have been farmed out to universities depending on their specialties.
Sarawak On Line 