Competitiveness Analysis of Malaysian and Indonesian Sago Exports

Abdul Hayy Haziq, Mohamad and Rossazana Ab-Rahim, Ab-Rahim and Nur Nazifah, Mohamad and Daniel Ugih, Echoh and Joseph Wong, Kee Hook and Evelyn Toh, Ting Ling (2024) Competitiveness Analysis of Malaysian and Indonesian Sago Exports. Business and Social Sciences, 14 (1). pp. 2226-2241. ISSN 2222-6990

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Abstract

Sago is a potential commodity for economic development in rural areas such as Southeast Asia. Meanwhile, Malaysia and Indonesia play an important role as sago producers globally, and so were close competitors in the Asia region. Market issues are always rising as the main issues among the exporters. Based on the previous studies, Indonesia holds the title as the largest plantation of sago meanwhile, Malaysia was estimated to be the third-largest in terms of plantation of sago but has been the biggest exporter for the sago compare to Indonesia. Therefore, this issue is significant to be discussed. The research indicates the competitiveness of sago between Malaysia and Indonesia to know which countries have the most market share in three decades. Malaysia and Indonesia both are the largest exporters of sago in the region. Thus, the aim of this research is to analysis the competitiveness between these two largest exporters of sago. This paper were purposes to analyse Malaysia and Indonesia’s comparative advantage from 1988 to 2019 by using export growth rate and the Balassa index RCA to find patterns of variation across parts of the world over different export data segments. There are also ln RCA and RSCA methods conducted to solve the skewness problem in the data. The results from the analysis shows that Malaysia has almost total dominance of comparative advantage for sago export. Meanwhile, Indonesia was not consistent in the export for sago market compare to Malaysia.

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