Since the 1980s Borneo has seen increasing demand for its natural resources – notably timber and palm oil – driving an unprecedented amount of commercial activity on the island. Today, while it is by no means one of the Asia-Pacific’s tiger economies, new roads and energy projects provide evidence of Borneo’s growing wealth. Equally though, there remain concerns about the long-term sustainability of an economy that is largely based on raw material extraction.
One island; three nations
Uniquely for an island of its size, Borneo is divided between three countries. The northern states of Sabah and Sarawak are part of Malaysia; large tracts of the south are under Indonesian jurisdiction, while the Sultanate of Brunei accounts for 6 percent of the total land mass. With around 30 distinct ethnic groups sharing its 183 million acres, Borneo is a diverse place both politically and culturally.
The economic transformation of Borneo began in the Malaysian north of the island in the state of Sarawak. Comprising 600,000 residents, Sarawak’s state capital Kuching is both Borneo’s largest population center and a vibrant economic hub.
Although few expatriates work in Kuching, English is widely used in the city and commonly spoken in business dealings. English is, in fact, as common in urban areas as Malay and the various Chinese dialects.
However, while the expat community is small, it is most definitely present. “In Kuching we have expatriates who usually work in the electronics sector - many Japanese and Korean people, but Americans and Europeans too,” says Yethfong Tang, Associate Director in the tax division of KPMG in Malaysia's Kuching office.
As Yethfong explains, while foreigners working in the city may have to tackle a language barrier, Kuching’s business community is welcoming. “You might need to deal with different dialects in our region, but our culture is friendly to visitors,” she says.
A local culture
Yethfong deals with few of our firms' global clients and enjoys a distinctly local working culture. “In Kuching everyone lives within 10km of the office, and everyone drives to work,” says Yethfong. “It's a small office and colleagues enjoy a close relationship. When we deal with clients we usually know them very well, so we can relax while we work.”
Like many workplaces in Kuching - the office is much smaller than you would find elsewhere, with a much less rigid distinction between work and social interaction. “It's a five-day week,” says Yethfong. “We tend to work 08.30 to 17.30, but from January to July - when there are deadlines in the audit and tax departments - we put in extra hours to complete our assignments.”
Elsewhere in Borneo, the City of Bandar Seri Bagawan is the capital of the Sultanate of Brunei. Although small, Brunei is a wealthy country with oil and gas reserves that account for around half its GDP. The country has attracted a relatively large expatriate community – including entrepreneurs from Europe, Australia and America – and, as in the urban areas of Malaysian Borneo, Malay and the Chinese dialects are as widely spoken as English. Office hours in the Sultanate are generally 08.00 to 17.00 Monday to Friday, and 08.00 to 12.00 on Saturdays.
Borneo industry
Banjarmasin, the largest city of Indonesian Borneo, is a deepwater port and an important trading center for the island. The importance of forestry to Borneo as a whole is illustrated by the presence of a strong plywood industry, with furniture, carpets and rubber also playing significant roles in the local economy. The local government has been attempting to attract outside investment into its industrial, financial and service sectors. However, business in the city has a distinctly local rather than international feel. Office hours are generally 08.00 to 16.00 or 09.00 to 17.00. Some offices open on Saturday mornings.
Outside the major cities, much of Borneo is still comprised of forest. Wildlife here is abundant indeed and the island’s national parks are justly famous. Traditional ways of life in Borneo are still very much apparent, despite recent economic development. Working here can be a challenging but also hugely rewarding experience for expatriates.