Letter to the Editor
By Muhammad Khusairy Bakri
Sarawak, a Malaysian State endowed with abundant natural resources and diverse ecosystems, stands at a crucial crossroads in its industrial and economic development. Sarawak has tons of natural resources from gas, oil, logging timber, agriculture, farms, etc., which bring a lot of value to Sarawak’s development. The shift of Indonesia’s main capital from Jakarta to Nusantara will open a variety of economic and research development. Sarawak has to play a big role in ensuring that it keeps up with highly integrated facilities and the financial hub of development to compete with other nations and worldwide fast future developments.
The proposition that Sarawak should establish a holistic ecosystem from downstream and upstream industries is critically needed to ensure Malaysia’s security in terms of production and wealth. Sarawak should hold and control the entire production cycle, from sheep, goat, and cow farming to the production of quality varieties of meat, milk and cheese for consumer products, from cultivating wood and agricultural in terms of its virgin timber to waste to the production of quality furniture, panels, and beam products for houses or buildings.
Sarawak should transform the mindset not only as main suppliers but also as main developers of valuable products that can fulfil the demands of needs nationwide and worldwide, where we are lacking in many ways. It is a strategic move that holds immense promise, especially to ensure job security, wide diversity, wealth and the future of Sarawak as a developed nation while retaining its talents, especially after what Covid-19 has taught us. This article delves into the multifaceted reasons behind the imperative for Sarawak to embrace a complete ecosystem of industry, providing a detailed analysis supported by evidence and justifications.
One of the primary benefits of an integrated downstream and upstream industry is the potential for substantial job creation and skill development, as well as retaining talents. The establishment of agricultural practices, manufacturing units, and the production of goods like canned meats and timber panels necessitates a diverse skill set, offering employment opportunities across various sectors.
Evidence from regions and nations that have successfully implemented integrated industries shows a positive correlation between such initiatives and increased employment rates as well as improved sources of income for Sarawakians. It also reduces dependency from outside and creates big revenue for Sarawak, indirectly making it a high-income nation, maybe the first in Malaysia. It also creates a form of security and reliance on its products, as well as creates a wealth environment in Sarawak. For instance, a study conducted in a comparable nation and region revealed that the integration of farming, processing, and manufacturing activities resulted in a significant boost to employment levels. This is particularly relevant for Sarawak, where a diverse workforce can be engaged in different stages of the production chain, from cultivating raw materials to processing and refining them into final products.
Sarawak’s historical reliance on certain sectors, such as oil and gas, and now focusing on hydrogen, has left its economy vulnerable to global market fluctuations. An integrated downstream and upstream industry offers a pathway to economic diversification, reducing dependence on a single sector and enhancing the region’s resilience to external economic shocks.
Empirical evidence from nations and regions that have diversified their economies through integrated industries showcases enhanced stability. By engaging in multiple economic activities, these regions have demonstrated a greater capacity to weather economic downturns in specific sectors. Sarawak’s embrace of a comprehensive industry would thus mitigate risks associated with over-reliance on any one sector. For instance, Sarawak not only created its first chips or batteries but also produced its laptops, cars, and phones as a whole, not by parts.
The control exerted over the entire production cycle in an integrated industry allows for the implementation of sustainable agricultural, timber, etc., practices. This is particularly pertinent to Sarawak’s rich ecosystems, where the preservation of biodiversity and the depreciation of environmental degradation are paramount. Studies have shown that integrated agriculture systems, where farmers oversee the entire process from planting to processing, result in more sustainable outcomes. These practices include crop rotation, agroforestry, and the use of organic fertilizers, contributing to soil fertility preservation and reduced environmental impact. Sarawak, by implementing such practices through an integrated industry, can position itself as a champion of environmental conservation.
An integrated industry also enables efficient waste management and recycling practices. Controlling the entire production cycle facilitates the establishment of recycling processes, minimising waste generation, and promoting environmental sustainability. Case studies from regions that have successfully implemented integrated waste management systems demonstrate the positive impact on the environment. Sarawak, with its commitment to ecological conservation, can leverage integrated industries to achieve significant reductions in waste generation and contribute to a cleaner, more sustainable environment for future generations. Proper implementation will see Sarawak as the first example of a state with a clean, zero-waste, sustainable future example for the outside to follow.
The integration of downstream and upstream processes provides an ideal environment for research and development (R&D). Evidence suggests that regions with integrated industries often become hubs for technological advancements, fostering innovation and competitiveness. By investing in R&D within an integrated industry framework, Sarawak can stay abreast of technological developments and maintain a competitive edge. Automation, precision agriculture, and advanced manufacturing techniques are just a few examples of areas where Sarawak can harness innovation to enhance productivity and efficiency. Universities should improve their capability and capacities to conduct research, as well as prepare state-of-the-art facilities that can produce 1-on-1 scale products from cultivating to varieties of products. It is really important to ensure we are ready for Industrial Revolution 5.0 (IR5.0), where both technologies will be important in our daily lives, which Sarawak universities still lack.
The establishment of an integrated industry is not solely an economic endeavour but a social one. The inclusive nature of such a system empowers local communities by providing them with opportunities at every stage of the production chain. Evidence from regions that have prioritised community engagement in integrated industries highlights the positive impact on social cohesion and individual empowerment. In a comparative analysis, it was found that regions implementing integrated industries with a focus on community involvement experienced a more equitable distribution of wealth and resources. Sarawak, by adopting a similar approach, can ensure that the benefits of industrial development are shared among its diverse population, fostering a sense of ownership and pride.
Economic prosperity and environmental sustainability resulting from an integrated industry contribute to an overall improvement in the quality of life for Sarawak’s residents. Higher employment rates, enhanced social infrastructure, and a cleaner environment positively impact the well-being of individuals and communities. Case studies from regions that have successfully transitioned to integrated industries indicate a correlation between improved quality-of-life metrics and the comprehensive development approach. Sarawak, by prioritising the holistic development of its communities, can create a positive cycle of growth that attracts talent and investments.
While the establishment of integrated downstream and upstream industries presents numerous benefits, it is essential to acknowledge potential challenges. Infrastructure development emerges as a critical aspect, requiring significant investment and planning. However, careful consideration and strategic planning can mitigate these challenges, ensuring a smooth transition to an integrated industrial ecosystem.
Examining successful case studies of regions that have implemented integrated downstream and upstream industries provides valuable insights into potential benefits and challenges faced. Comparative analyses of regions with similar ecosystems and economic structures can offer practical lessons for Sarawak’s journey toward comprehensive industrial integration.
In conclusion, the case for Sarawak to embrace a complete downstream and upstream industry is grounded in a comprehensive analysis of economic, environmental, and social factors. The evidence presented demonstrates the potential for job creation, economic diversification, ecological conservation, technological advancements, and social empowerment. By addressing challenges through strategic planning and drawing insights from successful case studies, Sarawak can position itself as a beacon of sustainable and inclusive development. The journey towards a holistic industrial ecosystem represents a transformative opportunity for Sarawak to unlock its full potential and shape a resilient and prosperous future.
Ts Dr Muhammad Khusairy Bakri is a postdoctoral research associate at the Composite Materials and Engineering Center, Washington State University (WSU), a faculty-staff member for the Center of Bioplastics and Biocomposites (CB2) for North Dakota State University, United States of America, and a lead research and development sector of the Association of Professional Technicians and Technologists (APTT) Sarawak.
This is the personal opinion of the author and does not necessarily represent the views of DayakDaily. Letters to the Editor may be lightly edited for clarity.
