Borneo Express

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Economy and Industry of Borneo

Sabah | Sarawak | Brunei | Kalimantan |


Sabah

Sabah's economy was heavily dependent on timber export, but with the depletion of this natural resource and policies to save the rainforest in order to exploit it on a sustainable basis palm oil has become a major player in Sabah economy, next to tourism. Sabah is the major producer of palm oil and cocoa in the whole of Malaysia. Mineral and non-mineral deposits such as oil, copper, gold, limestone and quarry are also found in the State.

Sabah economy:
  •   Agriculture
  •   Timber Industries
  •   Fisheries
  •   Manufacturing
  •   Tourism

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    Sarawak

    The economic strucuture of Sarawak is quite similar to that of it's East Malaysian neighbour Sabah, whereby, it is largely export-oriented and primary commodities dominated. The primary sectors (i.e., mining, agriculture, and forestry) make up about 40% of the state's total real Gross Domestic Product (GDP), followed by the secondary sector (i.e., manufacturing and construction) with about slightly more than 30% of total real GDP.

    Sarawak is blessed with an abundance of natural resources. LNG and petroleum, have provided the mainstay of the state's economy for decades. Sarawak is also one of the world's largest exporter of tropical hardwood timber. However, the state government has imposed strict log-production quotas over the recent years to ensure sustainable forestry management. Sarawak still, however, produces approximately 9 to 10 million cubic metres of logs annually.

    With such vast land expanse, Sarawak has large tracts of land suitable for commercial agricultural development. Approximately 32% or about 4.0 million hectares of the state's total land area have been identified as suitable agricultural land. Nevertheless, less than 9% of this is planted with productive permanent crops, while the balance is still under shifting cultivation for hill padi (rice) which is estimated at more than 1.6 million hectares. The main commercial crops are oil palm, which has been increasing steadily over the years, sago, and pepper.

    Sarawak major industries:
  •   Timber-base industries.
  •     Sarawak is one of the world's largest exporters of tropical hardwood timber. Sawn timber, Sawn logs, veneer and plywood form a major portion of the timber exported. Although timber and timber-products have traditionally been one of the most important exports, the potentials for timber processing activities have not been fully tapped. Under sustainable management programmes, Sarawak's forests can produce around 9-10 million cubic metres of logs annually, and the state aims to utilise much of this for value-added timber processing activities.
  •   Petroleum and Petrochemicals.
  •     The rapid development of the petrochemical industry in Sarawak has been due to not only the availability of large amounts of reserves, but also the government's efforts towards promoting private sector participation and interest, including designating an industrial area at Tanjung Kidurong, Bintulu, with well-developed industrial facilities to cater for the establishment of petrochemical projects. The ABF (ASEAN Bintulu Fertiliser) plant, MLNG-1(Malaysia Liquefied Natural Gas), Shell MDS (Middle Distillate Synthesis) and MLNG-2 are all located in this industrial zone. Another LNG plant is being planned in the area, making Bintulu the biggest LNG complex in the region.
  •   Commercial Agriculture.
  •     Sarawak has large tracts of land suitable for commercial agricultural development. Intensive research is being undertaken by the Department of Agriculture, Sarawak and other agencies on peat land to study its potential.

      

    Brunei

    Brunei Darussalam is still very much dependent on revenues from crude oil and natural gas to finance its development programmes. Aside from this, Brunei Darussalam also receives income from rents, royalties, corporate tax and dividends. Due to the non-renewable nature of oil and gas, economic diversification has been in Brunei Darussalam's national development agenda.

    Brunei Darussalam is the third largest oil producer in Southeast Asia and it produced 163,000 barrels per day. It is also the fourth largest producer of liquefied natural gas in the world.

    The unit currency is the Brunei dollar, divided into 100 cents.
    Exchange Rate: US$1.00 = between B$1.43 and B$1.60

      

    Kalimantan



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