What Next for Sabah, Sarawak Post-Covid?
From the 1st of April 2022, Malaysia will enter a transition stage from the Covid-19 pandemic to the endemic phase. However, the uncertainties in the global economy continue to loom large due to the Russian invasion of Ukraine and increased tensions between the US and China.
Locally, the multiple flood events in the Klang Valley have caught the attention of all Malaysians on the insidious impacts of climate change and the potential risks in almost all aspects of life. All these uncertainties have further driven the discussion and pressures for a more sustainable pathway of development.
Terms in relation to sustainability, like ‘security’, ‘resilience’, and ‘survival’ of humankind, have replaced ‘growth’ to become the keywords in these discussions. In the midst of uncertainty, planning authorities at both the federal and the state levels have moved on to mainstreaming sustainable development, particularly the 17 Sustainable Development Goals (SDGs) framework in finding ways to recover from the pandemic.
East Malaysia is in limelight due to its heavy reliance on large-scale land exploitation, especially timber extraction and oil palm plantation. Sabah and Sarawak have experienced massive deforestation and forest degradation in the past two decades, alongside the rapid expansion of oil palm plantations.
This mode of development has been unstable following the wax and wane of commodity cycles and accompanied by serious social issues that emerged from land-use conflicts.
Environmental degradation also exacerbates climate change, increasing the risks of droughts, floods and subsequently affecting agricultural production. Both states are also exposed to great risks of coastal erosion and rising sea level, as most of the cities are located along the coasts.
Sarawak
In Sarawak, the state government remains highly optimistic about its ongoing 10-year plan despite the uncertainties. A review published by The Sarawak Economic Action Council, chaired by the Premier, states that Sarawak ‘aspires to be a developed state by 2030’ with improvements in physical and digital infrastructure, science-based education, and ‘smart’ farming.
The term ‘digital economy’ was frequently mentioned by state officials, aiming to transform the state from a raw material producer to a high-value service provider.
While oil palm remains a key sector, the focus will be shifted from upstream to downstream with the development of oleochemical and bio-based industries in the state.
Forestry is given a new objective as revealed near the end of the report, hoping to restore ‘more than 200,000 hectares of (the) degraded forest’.
While the aforementioned plans are rather within the public’s expectations, the state has announced two surprising targets.
First, it aims to become a net food exporter by 2030. Although it is not new that the state administration has been pushing for converting subsistence agriculture to commercial farming, this new target adds further worries to potential land-use conflicts, given the past incidents that happened to the Native Customary Land.
Second, it intends to re-activate the plan to export power to Peninsula by undersea cable across the South China Sea. This has raised some concerns over the possibility of building new dams, leading to environmental destruction and displacement of indigenous communities.
However, a more feasible plan may be supplying its excessive power to Brunei, Sabah, and Kalimantan for extra revenues.
Sabah
Sabah is facing a more serious post-Covid situation compared to its neighbour with a high unemployment rate. Throughout the past two years, the state had lost substantial revenues from tourism, especially mass tourism from China.
As a response, the state government elected in 2020 has promulgated a new five-year plan for 2021-2025, with three main thrusts emphasised, i.e., the economic sectors of agriculture, industry, and tourism; human capital and well-being; and green infrastructure and sustainability.
The plan was branded with the name “Sabah Maju Jaya” (SMJ). Interestingly, the 17 SDGs were incorporated in the SMJ plan, listed at the front of the policy document. It has received praise from major organisations like WWF Malaysia for its openness and involvement of stakeholders in detailing the plan.
For example, “sustainable tourism” and a “green” recovery with climate considerations were placed as top priorities as suggested by WWF Malaysia.
Sabah has also attracted regional if not global attention in its pursuit of a Jurisdictional Certification of Sustainable Palm Oil (JCSPO) within the state.
While the state is often accused of unsustainable oil palm expansion, it has nevertheless taken up the challenge to implement the state-wide JCSPO approach to transform Sabah’s palm oil production and supply chain, with priorities given to halting deforestation, restoring the ecosystems, and securing sustainable livelihoods.
The unique feature of JCSPO is that it will cover the entire administrative area (in this case, the whole state) instead of just individual plantations, providing a platform to align all stakeholders to work together on a landscape scale.
The progress in Sabah will be an example not only for other states but also other developing countries that rely on land for development.
While the pandemic has disrupted the old norms, Sabah and Sarawak now have a unique opportunity to create economies that are more sustainable, inclusive, and resilient.
The recent adoption of the SDGs framework by the state governments marks a big departure from sectorial-based planning, undertaking a more holistic development thinking beyond just “land” and “growth” but covering multiple aspects of people’s lives, prosperity, and wellbeing.
The vision of riding on the waves of changes brought by the digital revolution may bring Sarawak to a new dimension with new dynamics and new development thinking. One of the side effects of the travelling restrictions during the pandemic was the accelerated deployment of digital technologies across both states.
It is not clear how this will further impact the rural areas, but it seems to open a new door to redefining the urban-rural gradients, potentially creating more self-sufficient sub-urban and rural settlements.
This may effectively enable the various ideas in revitalising rural areas with sustainable eco- and agri-tourism, as well as more integrated land-use planning on a landscape scale, giving both states more options in moving away from exploitative land-based activities.
Another interesting trend to be observed is the increasing discussion about linking Sabah and Sarawak with Kalimantan after the announcement of Indonesia’s new capital plan – probably the most controversial project in the region in the post-Covid time.
While the new capital is planned to become a modern ‘green and smart’ city, there are no sufficient reliable studies carried out to confirm the claims.
This adds further uncertainties into the mix – optimistically, it could bring new economic opportunities for Sabah and Sarawak, but the potential environmental and social impacts, considering the massive migration from Java to Kalimantan, should be carefully considered.
Imagining what is going to happen in Sabah and Sarawak in the next 10 years is an ambitious undertaking.
Can the adoption of the SDGs framework lead to innovation and solutions to solving the development trilemma, i.e., find a balance between economic growth, environmental protection, and social participation? This decade will be an interesting period of change to be closely observed.
- Chun holds a Ph.D (Utrecht). He is programme Leader (Master Sustainable Development Management), Jeffery Sachs Center on Sustainable Development (JSC), Sunway University Malaysia;
Dr Goh Chun Sheng
Jeffrey Sachs Center on Sustainable Development (JSC)
Email: @email
This article was first published in Daily Express, 24 April 2022.