Track: Business Management

Abstract

Transnationalism refers to the spread of economic, political, and cultural processes beyond national borders. Sebatik Island is unique because the northern region of the island is owned by Malaysia and the southern region belongs to Indonesia. No fence or wall was built to separate the two communities, and there is an informal cross border movement between Malaysia and Indonesia communities. The existence of cross-border trade between two neighboring countries reflects economic ties between border communities. The objectives of this study are 1) to measure the degree of socioeconomic ties between communities across borders between Sebatik Malaysia-Indonesia; 2) to assess the feasibility of creating Sebatik Border Trade Center for regional economic integration. This study employed an in-depth interview with the stakeholders involved in the governance of development in the study area. The selection of stakeholders was based on purposive sampling. Secondary data relating to economic activities was also used to strengthen the findings of the in-depth interview. Fieldwork to Sebatik Island was also carried out for observation of the current economic scenario. The economic fundamentals of Sebatik Island Malaysia-Indonesia were examined with the feasibility of regional economic integration by establishing a Border Trade Center in the Island. Thus, transborder economic development can be planned systematically by both the government of Malaysia and Indonesia as a strategic approach to strengthen the Sebatik economy. The development rubrics of the Sebatik Border Trade Center will take into account economic considerations, while maintaining security approaches to enhance economic development in the border areas.