In recent years, Borneo has emerged as a highly viable region for marketers and advertisers alike.
What sets it apart from traditional Peninsular markets?
Rapid Development
As travel becomes more accessible and cross-country boundaries reduced, more businesses are opting to look to Borneo as the next frontier of growth.
In Sabah, the Sabah Development Corridor (SDC) was launched in 2008 to accelerate the state’s growth,
ultimately aiming for a high-income business-friendly model.
(ref: http://www.sedia.com.my/About_us.html)Meanwhile in Sarawak, five economic corridors were announced between 2006 and 2010, culminating in the Sarawak Corridor of Renewable Energy (SCORE).
The second largest of Malaysia’s five established economic corridors, SCORE spans across over 70,000 square kilometres of resource-rich central areas with a population headcount exceeding 600,000.
(ref: http://www.recoda.com.my/invest-in-score/what-is-score)Lower Saturation
Studies have shown that media consumption in Sabah and Sarawak is lower than that of urban areas in Peninsula Malaysia (ref: ‘Media consumption in Sabah and Sarawak low, says OMD’, The Edge 25 February 2014). Traditionally, media spending from advertisers has been heavily focused on the key regions of Klang Valley, Penang and Johor. With so many messages and media bombarding the average Peninsula consumer daily, advertisers may encounter reduced effectiveness over the long run.
On the other hand, advertisers entering the Borneo market are afforded greater opportunities in capturing consumers’ mindspace. Less clutter translates into greater brand awareness and eventually stronger results. The average East Malaysian consumer has been described as a “go-getter, optimistic and more open to embracing challenges in life as compared to urbanites in the Peninsula.”
(ref: ‘Reaching Out To East Malaysia, Malaysian Business 1st August 2011)Growth Potential
With a total population count of 5.95 million and area of 203,846 km², Borneo holds immense possibilities for future advancement. The abundance of land, natural resources and human capital provides a ready platform for new brands to gain a stronghold and establish pioneer status.