I am very proud to present to you, Borneo Kaki, the e-commerce platform that enables local Sabahan SMEs to expand their outreach digitally. The project is an integral part of the Supply Chain and Shared Services Outsourcing (SSO) which is a government/private partnership spearheaded by the Ministry of Industrial Development.
Many of my fellow Sabahans always complain about their high living costs as compared to their Semenanjung compatriots. Our team is aware of the frustration and is committed do our part in addressing this issue. In 2015, SabahToday’s study found that a person needs a minimum income of RM3,000 a month in order to have a relatively comfortable life in Kota Kinabalu. However, the survey also shows that two thirds of our population is earning less than RM3,000 a month.
One of the main reasons for the high living costs is the complexity of Sabah’s supply chain.
One of the main reasons for the high living costs is the complexity of Sabah’s supply chain. Our sparse geography and hilly terrain poses a unique challenge. Sometimes the transport cost and middle man margins could contribute as high as 60% of the product costs. This makes it cost prohibitive for local SMEs to be competitive against the larger and better funded MNCs.
Towards a Shared Economy
We have all heard stories about how AirBnB became the largest hotel chain without owning a hotel. You probably were using Grab Car/Uber in your previous trip outstation. These concepts inspire us to think out of the box; to leverage on each other’s capacity to bring down operating costs. We need to use these new ideas to restructure Sabah’s supply chain. Thus, the Softwise Sdn. Bhd. launched the Supply Chain and Shared Services Outsourcing (SSO) scheme in September 2016.
SSO combines the various parties’ resources to be shared among each other.
In a nutshell, SSO combines the various parties’ resources to be shared among each other. For example, the sambal tuhau (spicy sauce) producer could focus in producing the best sambal recipe. When it comes to warehouse and logistics, the sambal producer could work with the kerepok lekor (fish snacks) producer and the mee kering (dry noodles) producer to share the costs of bringing their products to the consumers. By reducing the supply chain costs, the Rakyat will be benefited by having lower supermarket price tags.
Industrial revolution 4.0
We are at the brink of a new era and Sabah must not be left out from the Industrial Revolution 4.0. Our Nation’s Prime Minister Datuk Seri Najib Razak launched the Digital Free Trade Zone (DFTZ) earlier in March this year. Together with our nation’s digital advisor, Alibaba founder, Jack Ma, the project will open up huge cross-border trading opportunities, creating thousands of new jobs and improving Malaysian’s living standards.
Being based locally in K.K.I.P. Sabah, I hope that Borneo Kaki could help to create an environment that facilitates more Sabahan SMEs to venture into e-commerce. Sabah’s Deputy Chief Minister, Datuk Seri Raymond Tan, mentioned that Kota Kinabalu Industrial Park (KKIP) with its infrastructure and 280 business operators can act as a wonderful launchpad for companies embracing the Industrial Revolution 4.0.
Join US, Let’s DREAM Together
To all the local SME entrepreneurs, let us DREAM together. Not by lying on our beds, but by rising up to the challenge. Join us today and share your vision with us. (registration form)
We are committed to grow together with YOU. Let us expand Sabah’s economy together and upgrade the living standards of our fellow Sabahans.
– Darren Lo, CEO of Softwise Sdn. Bhd., 1st Aug 2017
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