Pre-Feasibility Study of Sabah-North Kalimantan Cross-Border Value Chains

Date Published
June 01, 2018

This study looks at the feasibility of developing a trade and investment area for North Kalimantan and Sabah, which share a 330-kilometer border.

The study maps the cross-border economic area between the two territories and provides an initial design of a border area development plan. 

It identifies trade and investment opportunities in specific goods and services, which can generate the maximum benefits for stakeholders and can serve as high-profile, demonstrable projects for the border economic area. It then looks at the cross-border value chains in North Kalimantan and Sabah, relating to the goods and services identified, taking note of the competitive advantage and resources the two territories offer. 

Indonesia aims to speed up North Kalimantan's economic growth, reduce poverty and inequality, and attract skilled workers and technicians from the country’s megacities. North Kalimantan has abundant natural resources and can deliver basic agricultural, forestry, fishery, and mining products needed by Sabah in exchange for technology and knowledge transfers.  

In the case of Sabah, the objective is to transform the Malaysian state from its primary commodity export dependence into an economy driven by high-technology industries and service-based activities. The Sabah State Government wants to expand productivity and skilled labor to spur economic growth.  
 
CONTENTS 
• Introduction  
• Pre-Feasibility Components 
• Economic Profiles 
• Government Objectives 
• Economic Analysis of Traded Goods 
• Economic Analysis of Traded Services  
• Program Design  
• Cost–Benefit Analysis  
• Nonmonetarized Project Appraisal 
• Overall Program Appraisal 
• Execution Strategy