Borneo needs to cut its exports of raw materials

KUCHING, 7 Oct: Borneo needs to enhance the economic value of its natural resources by reducing dependence on raw material exports, instead developing local capabilities and expanding participation in regional and global value chains.

Sarawak's Prime Minister, His Highness Tan Sri Abang Johari Tun Openg said the approach was important to ensure that Borneo's rich native resources provide greater economic benefits to the region.

"Borneo has an abundance of natural resources, but our goal should be to create more value from these resources in the region.

"We need to move beyond raw material exports by developing local capabilities, adopting new technologies and taking a more active part in the regional and global value chain", he said while speaking at the Second Borneo Economic Forum on 'Shaping the Future of Borneo' here today.

According to Brother Johari, that approach should be supported through closer cooperation between Sarawak, Sabah, Borneo and Brunei Darussalam to link their economic strengths.

He said the cooperation could encompass aspects of production, logistics, resources, technology and markets, thereby allowing Borneo to build a stronger regional value chain.

"Across Borneo, we need to see how different capacities can work together, linking production, logistics, resources, technology and markets to build stronger regional value chains", he said.

He said the effort enabled countries and provinces in Borneo to leverage their respective strengths more effectively than moving separately.

Additionally, increasing the value of natural resources and more active engagement in the value chain are also important for addressing changes in the global economic landscape, including supply chain restructuring and technological developments.