How digitalization unleashes the potential of bioresource and traditional knowledge

The COVID-19 pandemic caused significant disruption and is likely to have long-term consequences on economies around the world. Sarawak’s Micro, Small and Medium Enterprises (MSMEs) are not spared from the adverse effect of the pandemic. This has caused financial fragility of many small rural businesses which are already facing challenges due to remote locality factors and underdeveloped commercial markets.

As an initiative to improve the livelihood of affected communities, Sarawak Biodiversity Centre (SBC) in collaboration with United Nations Development programme (UNDP) has implemented a project which aimed to empower community-based businesses by enhancing their digital and marketing skills to improve the economic resilience of the rural community. The community are exposed to the importance of digitisation and online business in post COVID-19 period which may improve efficiency and competitiveness to increase sales of bio-products from the forests while preserving the knowledge and resources. The project is in line with the Post COVID-19 Development Strategy (PCDS) 2030 whereby Sarawak aspires to be a thriving society driven by data and innovation to enjoy economic prosperity, social inclusivity, and sustainable environment.

Communities and their Bio-products

A total of six villages across Sarawak was selected to participate in a digital on-boarding programme based on the bio-product that the community have uniquely produced. These villages include Rumah Bajau (Julau), Rumah Janang (Selangau), Rumah Emak (Kapit), Kuala Medalam (Nanga Medamit, Limbang), and Rumah Machup (Roban), which produce Engkabang butter while Kampung Jemoreng (Matu) produces Sekiu oil.?

Engkabang Butter

Engkabang (Shorea macrophylla) is a Borneo dipterocarp species, known locally in different languages as kawang, engkabang jantong, kawang jantang and tengkawang hantelok. This plant is endemic to Borneo and abundant in mixed dipterocarp forest, at elevations below 600 metres. It is classified as “vulnerable” on the IUCN Red List of Threatened Species. The tree grows up to 45 meters tall and is commonly used as timber. It bears fruit once in every five (5) years.? The fruits are used to produce illipe butter also known engkabang butter, a delicacy among the locals which is served with hot, steaming rice. Illipe butter is also regarded as one of the richest butter by the personal care products industry and is used in balms and moisturizers.

Sekiu Oil

Sekiu oil is regarded as the liquid gold in Sarawak due to its high price and golden colour of the oil. It is produced from the seed kernel of Sekiu fruit (Madhuca motleyana of the Sapotacae family), also known as Skiu or Ketiau. With its strong bitter almond scent due to the presence of benzaldehyde, an aromatic aldehyde, it is used as food flavouring by the Melanau community. The Sekiu oil is mainly produced by the Melanau community in Daro, Mukah. The lengthy process of Sekiu oil and the rarity of the supply were the main reasons for the premium price.?

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Moving Towards Digitalization?

Together with the Ministry of International Trade, Industry and Investment (MINTRED) and Sarawak Digital Economy Corporation (SDEC), a series of online, hybrid and physical workshops has kicked off in May 2021 with the aim to encourage the communities to market their local bio-products through online business (e-commerce). "Train the Trainer" programme was introduced to allow training of more villagers by their own community. Mentoring sessions were continuously held to encourage and support the community in their learning. The programme received high participation from women in the community.

The goal of this programme is to develop essential knowledge and skills, and provision of an ideal digital platform to move communities forward to online businesses. As a result, the communities will be inspired and empowered to embark on e-commerce towards global market.?

Since January 2022, the participating communities have completed their online business onboarding and they have created and fully utilised Facebook and WhatsApp Business tools in the post COVID-19 era. As a result, Kampung Jemoreng has made few business transactions of Sekiu oil via Facebook from other areas in Sarawak. Before this project was implemented, their product sales were only limited to Mukah area. Currently, with the online marketing via Facebook page, they were able to expand their sales not only to the entire Sarawak but to whole of Malaysia. Rumah Janang, Selangau and Rumah Emak, Kapit has also performed their first e-commerce transaction by selling, handicraft and Engkabang butter. Kampung Kuala Mendalam, Limbang, Rumah Machup, Roban, and Rumah Bajau, Julau are in their progress of promoting and selling their unique products.?

The communities are now actively selling their products in a local social enterprise e-commerce platform - Timogah (www.timogah.com). Timogah is designed to connect farmers, traders and local product dealers directly to consumers or customers in Sarawak. Timogah has created the opportunities for local farmers and micro businesses to reach out to more customers at the comfort of their farms and premises since their launching in 2018. Borneo Timogah has diversified their product to handicrafts and local screwpines mats and other bio-products. The aim of Timogah is to improve communities’ incomes and lifestyle, while also providing consumers with direct access to fresh produce and rural products.

The Future?

Rural communities are still facing challenges in the move towards digital transformation and e-commerce. However, with the target of 90% internet coverage in Sarawak by 2022 as envisioned by the Premier of Sarawak, the rural communities will now have opportunities in e-commerce market. The project has made a few headlines in local newspaper, “Suara Sarawak” while being featured in “BorneoTalk” magazine. Moving ahead to accelerate the digital transformation in the rural communities and increase the bioeconomy growth of Sarawak, partnerships with both public and private sectors must be forged.

The article can be found at https://www.undp.org/malaysia/blog/how-digitalization-unleashes-potential-bioresource-and-traditional-knowledge

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