Petroleum and natural gas, forestry, and logging have made limited contributions to local socio-economic development. The expansion in plantations often occurred through new logging of old-growth forests. In 2011, export of crude palm oil in Sarawak exceeded 2 million tonnes with main export partners being China and India. Īs of 2011, primary commodities made up 50% of the state's total exports. Sarawak continued the traditional style of modernisation through large-scale agriculture, industrialisation, and urbanisation with little room for the conservation of forests unless such conversation efforts are worthwhile in tourism development. As the federal government took control of the offshore oil and gas resources of Sarawak, political elites in Sarawak turned to controlling timber concessionaires to maintain their influence, thus leading to large-scale timber extraction in the state in the 1980s and 1990s. Japan traditionally maintained discriminatory policies against processed wood products from developed countries. Japanese companies bought a significant amount of raw timber from Sarawak. By 2010, services made up 32% of the economy, and manufacturing 25%. In 1990, just over half of economic value was generated by the primary section. Some shifts towards industry and services began in the 1980s in line with increasing urbanisation. This expansion in value was not reflected in an expansion in employment, with the industry continuing to employ less than 1% of the population during this time. Between 19, a boom in petroleum exports and price led to "mining and quarrying" going from less than 1% to almost a fifth of the economy. This resulted in rapid but volatile growth. ĭuring its first few decades as part of Malaysia, the economy was dominated almost entirely by natural resources and commodities such as oil and gas, timber and palm oil. While the Japanese occupation of Sarawak from 1941 to 1945 brought many negative socio-economic developments, Sarawak achieved food self-sufficiency through coercive measures. On the other hand, the lack of economic development led to an absence of social problems associated elsewhere with economic growth. On the whole, the Sarawak economy was mostly stagnant during the Brooke era, especially compared to nearby British colonies such as the Federated Malay States, Straits Settlements, and Lower Myanmar. These products were then exported to Singapore. However, only rubber, sago, pepper and gambier planting were successful. The Brooke government had encouraged the planting of cash crops such as rubber, pepper, gambier, sago, sugar cane, tea, coffee, tobacco, and rice. For example, the Hakka people were involved in gold mining at Bau during the early days of Brooke rule. They became involved in various economic activities such as mining, trading, and cash crop plantations. The Chinese settlers were mainly from Guangdong and Fujian provinces. The Melanaus stayed in Mukah where they produced sago for trade with Brunei Malay traders. The Iban people were engaged in shifting cultivation, while the Bidayuhs, who lived on hills, were engaged in hill padi cultivation. They brought goods such as salt, iron, and clothes to inland areas in exchange for rice and jungle products. The Malays lived near the rivers of Kuching, Samarahan, and Sri Aman, thus allowing them to trade. ĭuring this period, the five main ethnic groups in Sarawak engaged in different economic activities based on their geographical location. However, he opposed opening up the state for western capitalist economies and Chinese immigration. During the era of Charles Vyner Brooke (1917–1946), he continued his predecessor's policy of promoting land cultivation and food self-sufficiency. He also promoted the immigration of Chinese as peasant farmers. Charles Brooke introduced a liberal land policy and encouraged the introduction of new cash crops. Agriculture was the main focus of economic development, and international trade of local agricultural produce increased for example the export of sago products to Singapore. Economic development began to progress slowly during the reign of his successor, Charles Brooke, from 1868 to 1917. The first Rajah of Sarawak, James Brooke, who ruled from 1841 to 1868, did not engage in noticeable commercial or financial activities during his rule.