IN the dynamic landscape of today’s world, where digital transformation has become a defining force cutting across industries and boundaries, Sarawak has emerged as a proactive player in embracing this sweeping evolution.
More than just a technological shift, the state’s journey signifies a harmonious convergence of economic growth, inclusivity and innovation that resonates through various sectors and communities.
Setting the Stage for Economic Metamorphosis
According to economist Dr Evan Lau, this transformation began even before the Covid-19 pandemic upheaval as the state was already at the forefront of the digital wave.
He stated that the launch of the Sarawak Digital Economy Strategy 2018-2022 exemplifies the state’s proactive approach to leveraging digital technologies for the betterment of its people.
“The strategy, aimed at improving livelihoods through digital means, is an embodiment of the state’s commitment to sustainable development driven by digital computing technologies and interconnected stakeholders.
“Recognising that data has become the ‘new oil’ propelling productivity and sustainable growth, Sarawak understands that embracing digitalisation is not merely a choice but a necessity to maintain global competitiveness,” he said.
Transcending Boundaries: The Emergence of Sarawak’s Digital Marketplace
In the heart of this transformation lies the power to transcend geographical limitations.
The digital economy enables local businesses to reach global markets like never before, facilitated by data diffusion and active players.
Lau noted that this leap is a potential game-changer for the state’s economic landscape, propelling Sarawak into high-income and developed status.
“Digitalisation offers endless and existing possibilities, and I always believe that businesses adopting digital forms would be sustainable and resilient in the future.
“They can constantly adapt to changing market conditions, predict disruptions and innovate.
“Digital entities can pivot more swiftly in response to challenges, increasing longevity. The transformative power of digitalisation aligns with global trends,” he said.
He stated that as Sarawak forges ahead on this trajectory, the benefits for businesses and communities are undeniable.
“However, as with any transformative process, it’s essential to address challenges head-on and invest in foundational aspects to ensure digitalisation’s benefits are holistic and far-reaching,” he added.
Cultivating Digital Entrepreneurs: An Integrated Approach
Sarawak promotes innovation in its digital journey as well as to cultivate an entrepreneurial spirit.
Lau highlighted that the digital economy of Sarawak has led to an increase in startups and that new business models have sprung up.
He added that Sarawak stands strong with its focus on fostering digital entrepreneurship. This focus forms a key part of its strategy to emerge as a digital powerhouse.
“The approach is multifaceted. It includes the establishment of TEGAS Digital Village and Digital Innovation Hub which provides a conducive environment for startups to operate, collaborate and innovate.
“Apart from that, investments in improving internet infrastructure, especially in the more rural parts of Sarawak, also help in ensuring e-commerce businesses operate efficiently and tap into global markets.
“Moreover, conducting workshops, seminars, and training sessions to equip entrepreneurs with essential digital skills and partnering with academic institutions for research and development (R&D) too has aided in ensuring that innovation is grounded in sound research.”
On top of that, he said the collaborative effort between the public and private sectors, coupled with a proactive approach from the government, has positioned Sarawak as a promising destination for digital entrepreneurs in the region.
E-commerce in Malaysia Flourishes
As reported by the Department of Statistics Malaysia (DoSM), e-commerce in Malaysia continues its meteoric rise, showcasing a remarkable 10.4 per cent year-on-year surge.
It stated that e-commerce income from establishments in the first quarter of 2023 reached RM291.7 billion, with the manufacturing and services sectors emerging as the primary driving forces behind this exponential growth.
“The momentum of this digital transformation has been building over the years, culminating in a record-breaking e-commerce income of nearly RM1.10 trillion for the year 2022.
“Aside from the figure showing a significant 6 per cent increase compared to the previous year, it also attests to the resilience of Malaysia’s e-commerce landscape,” it said.
Looking at the situation, Shopee Malaysia’s Head of Marketing, Kenneth Soh, concurred with the resilience of the e-commerce industry.
He sees a lot of potential in this market for sellers, highlighting that even though e-commerce exists online the basics of effective marketing still matter.
“Online stores need to be just as strategic as traditional ones. They need to master the art of visibility just like how a shop would place itself in malls.
“Physical stores would use billboards, flyers and media advertisements to entice potential buyers.
“Similarly, e-commerce needs to offer different marketing opportunities that can help themselves be visible,” he said.
Soh said as consumers become more discerning and tech-savvy, it is essential for online sellers to adapt to changing demands.
Navigating the Post-Pandemic Landscape
The onset of the Covid-19 pandemic brought about a seismic shift in consumer behaviour, a phenomenon that proved instrumental in catapulting e-commerce to the forefront.
But as life edges towards normalcy, how does e-commerce maintain its momentum in a post-pandemic era?
Commenting on the matter, Associated Chinese Chambers of Commerce and Industry of Sarawak (ACCCIS) secretary-general Datuk Jonathan Chai said it is necessary for entrepreneurs to maintain competitive pricing while ensuring product quality aligns with the marketed claims.
“If any individual who intends to sell or market his products via online platforms, he must make sure that the pricing of his products is competitive and that the quality of the products matches what has been presented or publicised.
“Building consumer confidence is paramount, necessitating a robust mechanism to prevent abuse of trust within the digital marketplace.
“Aside from that, secure payment processing stands as a cornerstone, safeguarding sensitive data such as credit card information. Ensuring safety and security in transactions is pivotal for cultivating a loyal online customer base,” he said.
He pointed out that despite plans and safety measures being taken, like any other, e-commerce businesses too are bound to have their own risks.
However, he added, their losses are notably mitigated compared to traditional setups.
“The absence of physical stores translates to reduced renovation, utility and personnel costs. However, prudent inventory management remains vital, particularly when dealing with third-party products.
“Aside from that, scrutinising the terms and conditions of online platforms is also crucial to navigate issues ranging from payment releases to customer complaints, ensuring a seamless and secure business operation,” he said.
Sarawak’s Digital Renaissance: A Gateway to the World
Sarawak’s digital economy journey thrives on initiatives that are designed to leverage digital transformation.
The e-commerce businesses’ creation plays a big part in this effort.
Chai pointed out that the state’s proactive approach, including upgrading internet connectivity towards 5G, opens doors for local products to access global markets.
“We have a lot of potential, quality and unique products that could be marketed especially from the rural areas.
“Gula apong, bario rice, salted terubuk fish, and many more have a high potential to attract buyers from around the world,” he said.
In this context he commended Sarawak Digital Economy Corporation Berhad (SDEC), which together with the Sarawak Economic Planning Unit (EPU), launched the ‘Sarawak Digital Mall’ campaign under Shopee’s platform.
“This effort perfectly reflects the state’s endeavours as it aims to support local businesses through e-commerce.
“As such, entrepreneurs should capitalise on the available opportunities. They should expand their market reach into the digital world,” he said.
E-Commerce Through the Lens of the Public
With the availability of e-commerce, it has undeniably brought revolutionary shifts in the business world.
According to Lanusha Krishnan, 26, the transition to e-commerce is a strategic manoeuvre for businesses as it caters to a wider range of consumers.
“Aside from being able to reach consumers worldwide, unlike physical stores, online businesses do not need significant funding. This is ideal for business startups,” she said.
Meanwhile, Mohd Rozairie Ramlie, 23, likens e-commerce to a fast lane to market, albeit a highly competitive one.
“Diving into e-commerce is no longer a means of taking pictures and posting it on social media, now it’s more towards building personal branding to attract people to view and buy the product,” he said.
In addition to that, he highlights the significance of engaging with customers, emphasising that e-commerce equips businesses with the tools to connect with a limitless customer base.
“Positively looking at it, the data generated through these interactions becomes a valuable resource for businesses to analyse product trends and gauge customer preferences. These will help entrepreneurs plan their business strategically,” he said.
Faeez Aiman Yusri, 29, meanwhile, said e-commerce can be a great platform if it is properly utilised.
From the consumers’ point of view, he pointed out that they are able to browse a wide range of products and services from the comfort of their own homes, making shopping and engagement more accessible and seamless than ever before.
“That is why entrepreneurs should not fret much over what products they are selling. What matters most is how they use the platform to reach their target audience,” he said.
As for Radang Tik, 50, the availability of e-commerce has made a huge impact on the lives of the community including those who live in the rural areas.
“Having this platform gives a big impact to the rural folk. Now, they are able to buy products at the tip of their fingers instead of travelling far to physical stores to buy them.
“Aside from that, with e-commerce, they can also seize the opportunity to enter the e-commerce industry and promote the unique local crafts they make,” he said.
Sarawak’s embrace of the digital revolution underlines its proactive stance in harnessing digital technologies to fuel economic growth, inclusiveness and innovation.
As the state propels its digital journey, it is essential for stakeholders to collaborate, address challenges, and empower businesses and communities to fully embrace the digital era.
