3.0 World Handicraft Industry: An Overview 3.1 Handicraft Industry in Malaysia: An Overview 3.2 Handicrafts in Sarawak 3.2.1 Types of Handicraft in Sarawak 3.3 Sarawak Handicraft: Mapping by Zone and Activities 3.4 Supporting Agencies 3.4.1 Support Programes Provided by Agencies 3.4.1.1 Training and Craftmen 3.4.1.2 Marketing and Promotion Support 3.4.1.3 Raw Materials Replanting 3.5 Potential Handicraft Products 3.6 Issues and Challenges 3.6.1 Producer Issues 3.6.2 Marketing Issues 3.6.3 Customer Issues 3.7 SWOT Analysis 3.8 Basic Strategy Tenants (Strategic Tracks) for the Handicraft Sector 3.9 The Supply Chains 3.10 Recommendations 3.11 The Handicraft Sector Priority Action List 3.12 The Handicraft Cluster 3.13 Summary CHAPTER 3 HANDICRAFT SECTOR 84 3.0 WORLD HANDICRAFT INDUSTRY: AN OVERVIEW Handicraft is a type of art that can exclusively and exceptionally articulate the traditions, legacy and customs of every country in the world. It is commonly defined as items made by hand, often with the use of simple tools, and are generally artistic and traditional in nature. This manner of expression brilliantly preserves the country’s ancient cultures, thus, the craft’s unique heritage and traditions that it represents are kept. Each country has its own distinguished handicraft style that bears its various historical aspects and values in a skillful and eye-catching manner. Made unique with distinct designs and finishing touches, these items speak louder and clearer than words. They show the excellence and artistic skillfulness of the craftsmen who made such handicrafts pieces entirely priceless. Many developing countries believe that handicraft industry holds promising opportunities for job creation and labour absorption. Artisans have been identified as the second largest sector of rural employment after agriculture in many regions of the world. Most countries in Asia are developing their handicraft sector to provide additional employment and to increase the quality of life for both rural and urban communities. Asia possesses up to USD100 billion market share in the global crafts industry. Although most of the countries are producing similar craftworks ranging from ceramic glass, fibre, wood and metal, all of the products carry their own authenticity and uniqueness portraying the distinct cultures and lifestyles of each country. The global handicraft market shows that both international and local buyers share one common interest in selecting crafts that are peculiar and new. Also, the sector is significantly influenced by the growth of the tourism industry. The crafts sector has to respond to the changes of the tourists’ spending habits and preferences. Global statistics for handicraft trade is difficult to estimate. However, from the number of countries that are benefiting from this sector in both economic and social aspects, it is obvious that this sector has a good potential to be further expanded. 3.1 HANDICRAFT INDUSTRY IN MALAYSIA: AN OVERVIEW The total number of artisans or craftsmen in Malaysia who produce and market their products commercially is difficult to estimate. This is because a huge chunk of registered and non-registered artisans operate on a part-time basis. Due to this constraint, the actual value of the crafts trade in Malaysia remains unknown. Malaysia (previously known as Malaya before 1965) has shown serious commitment to develop the industry since 1951, the year when the Rural and Industrial Development Authority (RIDA) was first established. The institute aims to support the development of small scale industries in rural areas. Government initiatives and efforts have accelerated since the Fourth Malaysia Plan (1981 -1985) when handicrafts were given proper recognition as a sector (Fariborz, 2011). 85 The year 1984 witnessed a significant development of the handicrafts industry in Malaysia when the Government initiated a rural development programme called Halacara Baru.The programme stressed the strategy of rural urbanisation, which focused on the development of socio-economic development infrastructure that could create and increase opportunities for income generation. The programme was triggered by the major growth period between 1980 and 1984, when there was an enormous sales increase in batik textiles. In 2010, once again, the handicraft industry received full attention from the Government when the contribution of the creative industry (of which the handicraft industry is a part of) to the Government’s GDP was highlighted by the Prime Minister in his 2010 Budget presentation. It was reported that the creative industry contributed RM 9.4 billion to Government GDP in 2008 (Dasar Industri Kreatif Negara, 2011). Additionally, in the same year, the industry created 0.4 per cent or 45,301 employment opportunities for Malaysians (Multi Media Development Corporate - MDEC, 2008). Inspired by the positive development, the government believes that the industry can be further developed and enhanced to generate better income. As a result, the Ministry of Information Communications and Culture has outlined the Dasar Industri Kreatif Negara (DIKN). Under this policy, handicraft is categorised under the Creative Art and Culture Industry, together with fashion and textiles.The policy stated that the Malaysian Handicraft Development Corporation (MHDC) is assigned the task to improve the promotional strategies of handicrafts and to look into the issues of artisan/handicraft entrepreneurs’ development. 3.2 HANDICRAFT INDUSTRY IN SARAWAK The Malaysian Handicraft Development Corporation (MHDC) has defined handicraft products as any item that has artistic or traditional cultural attractions and is the result of a process that depends solely or partly on the skill of hand, including batik products. Based on the definitions, all handicraft products in Malaysia are clustered into five (5) categories: ceramic works, forest-based products, metal, textile and other crafts such as musical instruments and engraving. The classification is aligned with UNESCO’s proposal, where the basic principle in classifying the product category is based on the primary materials used. Table 3.0 below shows the number of craftsmen in Sarawak by types of products and primary materials used. In comparison to the total population of Sarawak, which was reported to be over 2.4 million in 2010, only less than 0.061 per cent of the population are generating main income from craftworks. Hence, the handicrafts sector contributed only 0.02 per cent to the total national GDP in 2009. This value is equivalent to around RM10.61 million. The contribution was slightly higher than in 2007 when handicrafts contributed 0.01 per cent of the value, which in turn contributed RM2.6 million to the national GDP. In 2011, the handicraft sector accounted for approximately RM12 million, showing a slight increase as compared to 2009. It is also revealed that the dominant contribution of Sarawak to national GDP was from the agricultural sector (19.6 per cent). If the management of these two sectors is aligned properly, the agricultural sector can serve as input to the handicrafts sector by supplying raw materials planted under contract farming or replantation programmes. 86 Table 3.0 : Number of Craftsmen in Sarawak by Primary Materials Used Type of Products Year 2004 2007 2009 2011 Textile Batik 1 4 8 9 Woven 40 317 234 257 Songket 11 16 47 52 Cross stich 1 - - - Embroidery 6 22 23 25 Total 60 359 312 343 Forest-based products Wood 1 143 90 99 Bamboo 32 65 122 134 Rattan 1 195 369 406 Screw pine leaves 2 - 8 9 Nipah - 1 - - Rubber tree leaves - 1 1 1 Pandan 1 3 21 23 Serdang - - 2 2 Ribu-ribu - - 1 1 Bemban 49 141 171 188 Daun Sal - - 12 13 Others 15 20 13 14 Total 101 569 810 890 Ceramics Ceramic - 4 19 21 Total - 4 19 21 Metal based products Aluminum - - 1 1 Steel - 42 82 90 Copper - 1 - - Total - 43 83 91 Others Beads - 102 102 112 Others 4 14 11 13 Total 4 116 113 125 Source : Malaysia Handicraft Development Corporation Table 3.1 reveals the number of entrepreneurs in the handicraft industry from 2007 to 2010. The figures however, do not reflect the actual number of Sarawak people who generate their main income by commercialising craftworks. Instead, the figures only indicate the number of handicraft entrepreneurs who are registered with the Sarawak State, and are involved in craft production. The companies these entrepreneurs represent are classified as ‘micro’ according to their annual turn-over record. As for the medium sized industry, there are 83 companies registered as handicraft retailers. Type of Products Micro Medium Ceramic 18 Beads 12 Pua Kumbu 32 Kain Songket 4 Keringkam 9 Kulit Kayu/ Tree Bark 6 Andaman Rotan (rattan weaving) 18 Anyaman Buluh (bamboo weaving) 20 Anyaman Bemban (bemban weaving) 16 Wood Carving 28 Batik 4 Handicraft Retailers 83 Source : Sarawak Craft Council Annual Report Files 2007 to 2010. 87 3.2.1 Types of Handicraft in Sarawak Ceramic Handicraft Ceramic products that can be found in Sarawak mainly consist of potteries and beads. Potteries are mainly produced in Kuching district, and dominated by Chinese entrepreneurs. Meanwhile, ceramic beads can be found in the northern parts of Sarawak, namely Limbang, Lawas, and Kuching. The quality of the beads is differentiated by the quality of clay available locally. Additionally, in response to the buyers’ habits and preferences, the design and variety of beads produced are different. Most of the beads produced in the northern part still preserve the aesthetic design of the Lun Bawang community, whilst the bead producers in the southern part of Sarawak prefer to modernise the design by integrating the beads with modern jewelry and accessories. As for potteries, the products available in the market can be categorised into Chinese potteries and Ibanese potteries. As the market is being dominated by Chinese potteries, which hold more modern and contemporary designs, Ibanese potteries are gradually disappearing from the shelves of souvenir shops. Some of the Ibanese pottery producers have started to produce beads due to the more sustainable and stable market of the products. Currently, although Sarawak is not listed as one of the leading producers in Asia in ceramic products, Sarawak products are anticipated to be able to compete with international players since the land possesses one of the richest deposits of fine clay in the world. Ceramic Metal Wood-work Forest based Textile Bead-work Pasu Iban The Chinese potteries and handicrafts 88 Sarawak forest-based products have to compete with similar products from other countries such as China and Indonesia. Therefore, to survive in this competitive market, Sarawak’s products must carry their own uniqueness and authenticity. Forest-based handicraft According to the Malaysia Handicrafts Development Corporation (MHDC), forest-based products consist of woven rattan, bamboo, pandan or screw pine leaves. Sarawak is well-known for its bamboo, rattan and bemban products. Some of the products, especially bemban craftworks, attract strong demands not only from local but international buyers as well. However, based on the current supply capacity, the high demands are sometimes difficult to cater. The materials used in producing the craftworks depend on the geography and the available natural resources of the place. Most of the southern areas of Sarawak, particularly near the Malaysia- Indonesia border, have plenty of rattan, bamboo and bemban which grow naturally in the forest. If the local supply of raw materials is not sufficient, craftsmen will take the supply from Indonesia. Meanwhile, a lot of rattans and bembans can be found in Sibu and Miri districts, which results in the crafting of basketries and mats. There are also other materials that provide for the authentic value of Sarawak, such as the Jelutong wood, and the Temberan tree. Sadly, some of these species are endangered. This becomes a major constraint in further expanding the market of items produced from these materials. Bamboo basket Lampit mat Bemban mat Tambok Bidayuh’s bamboo products Forest based handicrafts of Sarawak Kelasar mat 89 Metal-based handicraft All handicraft products made of steel, gold, silver, pewter, and copper are clustered under metal-based handicrafts. Amongst the products that are well-known are tepak sirih (betel leaves container), women’s accessories and home interior decorations such as candle-holders. Metal-based products are widely produced in Peninsular Malaysia, especially in Pahang, Kelantan and Terengganu. In Sarawak, metal- based products are not generated in great numbers.The only well- known metal-based craftwork produced in Sarawak is the parang. To date, only one metal craftsman is registered with the Malaysia Handicraft Development Corporation, under the One District One Industry programme (Satu Daerah Satu Industri – SDSI). Textile handicraft MHDC defines textile handicrafts as those consisting of all products related to batik, weave, embroidery, songket and others. Based on the definition, all Malaysian textile products are categorised into seven (7) categories, namely batik, sulaman pis, seni telepuk, songket, sulaman nyonya (nyonya embroidery), tenunan dastar and tenunan pua. Out of these seven (7) categories, the most well-known textile products that carry the authenticity and uniqueness of Sarawak are the Pua Kumbu, Songket Rajang and Keringkam. There are three types of Pua textiles available in Sarawak: Pua Kumbu, Pua Sungkit and Pua Karap. The woven method and techniques differentiate one Pua from another.The well-known Pua these days is the Pua Kumbu, while the Pua Sungkit and the Pua Karap are slowly vanishing, especially the Pua Sungkit.This is due to its tedious weaving process. In comparison to other types of textiles, the Pua kumbu has its own strength. There are many private entities who consistently help the pua weavers, including the Tun Jugah Foundation and Society Atelier Sarawak. Both societies help the weavers market their Pua by organising international symposiums, joint competitions and exhibitions. Trainings and machineries are also provided by the private sector. Songket Rajang, which is mainly produced in Rajang, Sibu, is a proud Melanau heritage.The Malaysia Handicraft Development Corporation – MHDC (Sarawak Branch) is also assisting housewives in Kampung Gedong in Semunjan to generate income from songket production. Songket produced in both Rajang and Kampung Gedong have similar designs and motifs. Although the weaving techniques are adopted from Kelantan and Terengganu, the textile is different from those originating from eastern Malaysia. Songket Rajang is very universal because both sides of the cloth can be used. Another value-added element of the textile is that, it is woven together with silver or gold threads, which leverages the value of the end-product. This value- added element creates high demand from local buyers, especially government agencies, organisations and associations. The textile used in Keringkam is mainly produced in Kuching district. Keringkam is made from thin transparent voile or synthetic cloth embroided with gold or silver thread. However, due to the difficulties in handling the textile, Keringkam is slowly vanishing. The textile is relatively expensive for ordinary buyers, too. Similar to Songket Rajang, Keringkam can be considered as exclusive souvenirs. 90 Other Handicraft Products Other handicrafts produced by Sarawak craftsmen include wood carving, craftworks made of beads, and musical instruments, such as kompang and sape. Although there are several products under this category, the contribution of these products to the Sarawak GDP is relatively small. Sarawak Songket and Keringkam Pua Karap Pua Kumbu/ Pua Sungkit Sape Sumpit Sarawak Hornbill carving Wood craft from Manita Enterprise, Kampung Gersik, Kuching Seni telepuk Beads 91 3.3 SARAWAK HANDICRAFT: MAPPING BY ZONE AND ACTIVITIES One of the uniqueness of Sarawak handicrafts is that, the craftworks produced are clustered according to district. Ceramic products are mainly produced in the northern and southern parts of Sarawak. Although both places are rich with high quality clay, the type of crafts produced is different depending on the ethnic group living in the area. This trend is influenced by the diversity of cultures and traditions of the State’s multi-ethnic communities. Every ethnic group shares an artistic temperament and produces excellent handicrafts to portray its culture.Additionally, the natural resources that bring forth the raw materials used greatly influence the handicrafts, especially the ones that are woven. Figure 3.0 below shows the zoning of the handicraft products. 3.4 SUPPORTING AGENCIES The handicraft sector is culturally diverse in Sarawak. It has attracted interest from both the government and private sectors.The Ministry of Rural and Regional Development, the Ministry of Information, Communication and Culture, the Malaysia Cooperative Societies Commissions (Ministry of Domestic Trade, Cooperatives and Consumerism), Majlis Amanah Rakyat (MARA) and FAMA are among the main government agencies that have been given the responsibility of developing the industry. Under the appropriate ministries and agencies, various units, divisions and corporations have been founded to assist in the enhancement of the handicraft sector. Among the significant agencies that promote and sustain craftworks in Malaysia are: i. Villages Industries Division ii. Community Development Department iii. Malaysian Handicraft Development Corporation iv. Karyaneka Marketing Sendirian Berhad v. Batik Malaysia Berhad vi. Council of Trust for Indigenous There are also a number of state agencies established to boost the handicraft sector in Sarawak, including the Sarawak Economic Development Corporation (SEDC), the Sarawak Planning Unit (Entrepreneur Division) and the Sarawak State Social Welfare Department (KEMAS). In addition to the government agencies, many private organisations, including NGOs, also show their interest in enhancing the handicrafts industry. Among these are Dewan Usahawan Bumiputera Sarawak (DUBS), Tun Jugah Foundation, Sarawak Craft Council, Sarakraf and Ceramic Beads Rattan Bangles Hong (Sun Hat) Sword Bemban/ Rattan Products Ceramic Beads Beads LAWAS LIMBANG BAREO MARUDI MIRI NIAH BELAGA SIBU SARIKEI SARATOK SRI AMAN LUNDU BAU KUCHING KOTA SAMARAHAN MUKAH K BARAM Rattan Products Rattan Products Bemban Products Bamboo Products Keringkam Pandan Products Potteries Songket Terendak Lampit Mat Pua Kumbu Woodcarving Figure 3.0 : Handicraft Products Zoning 92 Society Atelier Sarawak. All of the NGOs share their interest in promoting, sharing and acquiring knowledge of Sarawak arts and crafts, promoting cultural exchanges of arts and crafts with other countries, as well as cultivating and encouraging research amongst craftsmen so that the culture of Sarawak arts and crafts will evolve. 3.4.1 Support Programmes Provided by Agencies Government and non-government agencies involved in the handicraft industry have been established with the objectives of encouraging the participation of villagers in the industry, providing training and ensuring consistent supply of raw materials to prospective craftsmen. In addition, they also provide facilities such as workshops and machineries, help market the craft products, and provide advisory services or mentoring assistance to entrepreneurs. In general, the trainings and supports provided by the agencies can be categorised into two: training to produce more skillful craftsmen and support of marketing the products through organizing crafts carnivals. Efforts to produce sustainable source of raw materials are also carried out by conducting replanting programmes. 3.4.1.1 Training of Craftsmen Home Training Programme The programme, which has been conducted by the Sarawak Craft Council since 2001, aims to propagate various skills in a familiar environment as well as to develop interest amongst communities of local ethnics in the handicraft-making industry. Since 2001, approximately 250 trainers have been engaged in the programme to train almost 1,357 participants throughout Sarawak. Most of the training focus on weaving and carving skills. In 2010, the Sarawak Craft Council selected six (6) villages within three (3) districts to join some home training programmes. However, although more than 1,357 local people participated in the programme, only 60 of the participants were identified to be actively involved in the local handicraft industry. Thirty of them were actively producing crafts for commercial activities and hence they treated the sector as a vocation, while the other 30 participants produced crafts only on order basis or part time basis. Production Cluster Programme Triggered by the One District One Product (Satu Daerah Satu Industri), an extensive programme known as the Production Cluster Program was initiated by the Sarawak Craft Council. The aim of the programme is to ensure that one entrepreneur focuses on one product only. Through the programme, competitiveness amongst craftsmen to market their products as well as to obtain raw material supply is minimised. Between 25 to 56 local people are clustered together in a group to produce various products from a single type of raw material. One of the benefits of the programme is that, the responsible agency helps the craftsmen in finding market for their products. Craftsmen under this programme are also trained to be 93 able to produce products based on current customers’ requirements and interest. Monitoring and Mentoring Services The monitoring and mentoring services have been established to assist the dissemination of current information on trend and market demand, and availability of new technologies to the craftsmen.This is in order to improve the quality of items produced.The system creates opportunities for skilled craftsmen to transfer their knowledge to semi-skilled craftsmen. Product Design Workshop The workshop aims to equip new craftsmen with adequate skills in making handicrafts. It provides opportunities for craftsmen to engage with not only local skilled craftsmen but also international artisans from countries such as the Philippines and Germany. Such workshops serve as a channel for knowledge exchange amongst artisans worldwide. Incubator Training Some agencies also provide training for those who want to be craftsmen. Interested craftsmen may submit a proposal to respective agencies to request for support such as facilities and equipment to initiate their business. Agencies such as MHDC and the Tun Jugah Foundation provide machineries and equipment in their incubators or training centres and invite craftsmen to use the facilities provided. 3.4.1.2 Marketing and Promoting Support The Government as well as private agencies has provided good assistance and support in elevating Sarawak crafts to a higher level. Numerous exhibitions, expos and carnivals are organised to assist the artisans in promoting their craftworks. Voluntary bodies such as Society Atelier Sarawak also conduct and participate in crafts and art competitions worldwide in order to promote Sarawak local artisans internationally. Through such competitions, artisans receive recognition and awards for their skills and talents. Indirectly, such recognition motivates other craftsmen to treat crafts production as a vocation. Despite all the vigorous and continuous efforts carried out by the related agencies, the growth of the handicraft sector is considered slow.The problem is contributed by various factors such as communication breakdown between the organisers and producers, in which information does not reach targeted participants, and logistic problems, especially for producers from rural areas. The inability of the producers to supply adequate products for an event is also a contributory factor to the problem. 3.4.1.3 Raw Materials Replanting To ensure sustainable supply of raw materials, replanting programmes were initiated by the Sarawak Craft Council in 2007. The project involved replanting of rattan, bamboo 94 and bemban in villages engaged with the Cluster Production Program. The idea was initiated to minimise the reliance on raw material supply from Indonesia. The effort attracted interest and support from international organisations such as the World Bank, the United Nations Development Program, and numerous agencies from Europe as well as the United States. Table 3.2 shows the areas involved in the replanting of rattan, bamboo and bemban in 2009. Unfortunately, in 2010, the replanting project of rattan was declared unsuccessful, while the bamboo and bemban projects produced acceptable outcomes. Table 3.2 : Village Involved in Projects For 2009 AREA NO. OF VILLAGE NO. OF SEEDS 1 Bau 20 6,000 2 Kanowit 1 3,000 3 Saratok 6 12,000 4 Middle Baram 23 - 5 Upper Baram 7 5,000 6 Miri 1 2,000 7 HuluLimbang 3 1,500 8 Belaga 2 2,500 Total 63 37,000 Source : Sarawak Craft Council (2010) 3.5 POTENTIAL HANDICRAFT PRODUCTS The study by Hasan, R., Sahari, F., and Lucas, T. (2010) reveals that Pua Kumbu weaving is the most popular craftwork among buyers. Pua Kumbu can be used to produce various types of end-products that varies from decoration products to clothing, hence creating high demand from a wide range of individual and corporate consumers. Results from the study also show that woven Pua Kumbu holds the most potential among the handicrafts, and similar trends can be expected from Keringkam, Songket and other traditional textiles available in Sarawak. The second most popular products are bamboo and bemban-based products, followed by rattan-based and beads products. Figure 3.1 shows production proclivities in Sarawak. Figure 3.1 : Production Proclivities Pua Kumbu Bamboo and Bemban base Products Rattan Base Products Beads Craft Products 95 3.6 ISSUES AND CHALLENGES The Malaysia Handicraft Development Corporation (Sarawak Branch) has initiated a number of efforts to enhance the handicraft sector in Sarawak. However, regardless of the numerous efforts, the sector contributed less than 10 per cent of the national GDP. Figure 3.2 simplifies the issues and challenges faced by handicraft entrepreneurs in Sarawak. 3.6.1 Producer Issues Access and Consistency in the Supply of Raw Materials Sarawak is blessed with an abundant supply of resources which gives impetus to the growth and popularity of its handicrafts. However, much resources are needed to ensure that the sustainability of this sector is maintained. From the interviews conducted, it has been noted that such resources are still available but the locality factor has rendered the cost of acquiring the resources to be on the rise. Bamboo trees in Bario It is found that producers obtain their raw materials from private suppliers but only a few are able to source the materials or purchase them from the local population or related agencies. Because of increasing transport costs to deliver input supplies on time and in large quantities to the producers’ location, the cost of raw materials is high. Some materials have to be imported from other countries such as the U.S. in order to make certain specialised products. The growth and potential of this sector to contribute to the creation of business and commercial community among indigenous people could be enhanced through the proper management of natural resources. Cooperative movements should be entrusted to become a major player in the supply of raw materials, and play an important role in the supply chain. BOX 3.0 THE METHOD To understand the current issues and challenges in this industry, the views of entrepreneurs, government officers and consumers were solicited. A mixed method consisting of personal interview and focus group discussion was employed to gain data and information. A survey was also done on consumers of handicraft. A total of 52 craft producers were involved in in-depth interview. The producers involved in the interview were mainly from crafts related to fabric, ceramic and weaving. About 353 respondents were involved in a consumer survey. For the purpose of the study, the respondents of the consumer survey were classified into there types; 1) those who had experienced buying Sarawak handicrafts, 2) those who had experienced receiving Sarawak handicraft as a gift, and 3) those who never purchased or received any Sarawak’s handicrafts. Based on the survey, interviews and focus group discussion, this report highlights some of the prominent issues and challenges in the industry as shown in Figure 3.2. Specifically, the issues and challenges are discussed in the following order; producers, products, marketing and consumers. 96 Most of the handicrafts’ raw materials are sourced from the forest or along riversides, thus there is actually no consistent and reliable source of supply. Gathering bemban, for instance, is considered a dangerous task because of crocodiles or snakes, resulting in fewer people willing to do it. Research is also found to be lacking regarding possible programmes on sustaining the supply of natural products such as bemban and several others, to support the handicraft industry. Other concerns regarding raw materials include; inaccessibility of some locations, • lack of appropriate distribution network, • inconsistency of supply, • unpredictable weather changes, • depletion of raw materials, • increasing cost of raw materials, • transportation problems, and • competition with products made of substitute/alternative • materials. Part-time vs.Vocation Additionally, not all of the active and skilled craftsmen work as full- time artisans. Most of them produce handicrafts as supplementary income rather than using their skill for primary income generation. A number of them are quite senior in age or are only part-time artisans. Sinah Rang an artisan from Bario with her bamboo baskets Pottery artisans at Penrissen Road, Kuching 97 3.6.2 Product Issues Product Development Over the years, the handicraft industry has seen only minimal changes and very few introduction of new products. New product development programmes, formulated to add value to existing product designs, have been further hampered by the high cost of finishing materials. There appears to be a conflicting situation when it comes to product innovation. While some producers are willing to change and respond to the taste of the market, there are many more who wish to retain the original ethnic design. This does not fare well in terms of growth to the industry, because there is an urgent need to innovate and create new designs to fulfill the taste of the new generation of buyers, particularly comprising new groups of tourists (e.g. from Middle-eastern and African countries) coming to Sarawak. Product designs and features (for example, size and appropriate packaging) must be developed to fulfill the needs of the new generation of tourists coming to Sarawak. Another concern is the craftsmen’s lack of open-mindedness. They are still very much bound to cultures and customs. Sometimes, they leave their work in order to spend time participating in activities related to their cultures and customs. Traditional-bound artisans (specifically the producers of pua kumbu) wish to retain their own identity in the product design and motifs. They also prefer traditional production techniques that fringe upon the spiritual values embedded in the products.They are highly skilled, and hence are the most important asset to the sector. They can be deployed to provide training to the new generation of artisans. Handicraft Skills Training From the interviews, many of the handicraft entrepreneurs expressed that they are still lacking in appropriate skills and competency. As such, they are less able to improve the existing products in terms of design, colouring, dyeing and sewing styles. Alternatively, they resort to using lower quality finishing materials.Thus, the end result of their products are likely to be of lower quality. Currently, the Malaysian Handicraft Development Corporation (MHDC) in Kuching offers some training programmes in handicrafts. MHDC provides facilities such as workshops and machineries for artisans to produce their handicrafts for a certain duration. Once the period ends, it is hoped that the participants continue with their newly acquired skills to produce handicrafts and also to pass on their craft-making training to their communities. Malaysia Handicraft Development Corporation, Sarawak branch in Kuching Two participants attending training at Malaysia Handicraft Development Corporation Sarawak branch in Kuching. 98 Imitation of Sarawak Design Ethnic groups around the world have their own unique arts and artifacts. At the global level, each native group competes for a share of the world market. The production of Sarawak handicraft also faces increasing competition from other countries, in particular China, which is producing products with similar designs for ceramics and potteries. The competition from Indonesia is related to beads. With cheaper labour and a more industrious approach to production and marketing, Indonesian craftsmen are able to supply similar-looking items at relatively cheaper prices. Some of these products find their ways into Sarawak and are finally sold as Sarawak crafts. If these activities are uncurbed, the authenticity of Sarawak products will slowly diminish in the market. Another group, which can be termed as market-driven producers, is guided by the trends in the market-place. They use consumer tastes and preferences as the guide when creating new products and designs. Production Capacity Production capacity is enhanced when adequate machinery is available. Due to lack of capital, government agencies have initiated workshops equipped with machineries to assist the producers, particularly in the ceramic beads sector. These machineries are shared among many artisans. Such arrangement has created problems in scheduling production to coincide with the delivery date set by the customers. The production of other types of forest-based and pua kumbu products are dependent on traditional techniques. Using traditional techniques might produce good quality products but they also consume more time in comparison to new techniques or tools. Shortages of supply, skilled labour and machinery alongside maintenance issues have indeed exacerbated the problem of craftsmen. Production capacity is also affected by operators who do not treat handicraft production activities as a vocation. Source of photos : http://malaysianoyks.blogspot.com/2011/04/serikin-market- sarawak-attraction.html 99 Product Packaging and Branding There is very little product differentiation among producers, causing buyers to bargain intensively for the goods. Tourists who wish to make further purchase after they return from Sarawak have difficulty in contacting the handicraft producer or asking him/her to send more items. Hence, there is a need to catalogue the products for sales and marketing purposes. Trademarking of the products is also an important aspect that is often overlooked. Another issue is that of packaging. Producers have difficulty finding suitable and practical packaging for their items. The size of products vary from one type to another, and also from one producer to another; hence existing, off-the-shelf boxes are not easily suited for all purposes. Many producers use simple materials like used newspaper instead of bubble wraps to protect their fragile products in shipment.There is lack of suppliers that produce suitable (strong) and standard packaging materials for safer packaging and delivery to local or overseas purchasers. Standard sizes are important so that shipment in large quantities can be neater and more practical. Similarly, not all producers have links with courier or freight and forwarding companies to help with packaging and delivery overseas. Investment in branding is severely lacking and this has caused stiff competition to the producers, and consequently giving very low profit margins. 3.6.3 Marketing Issues Pricing The issue of pricing occurs at the producer level, in that, the producer is probably not getting a fair price. For example, the tradition-bound producers of pua kumbu are dependent on middlemen to supply basic raw materials.Thus, the service cost rendered by the middlemen is normally incorporated in the price of the raw materials. However, this kind of service is hard to measure in monetary terms. Many of the handicraft products do not have intellectual property rights and the value associated to uniqueness of the Sarawak design normally is not incorporated in the pricing structure.There is a need to monitor the price movement of both the supply and the final products so that fair trade can be promoted and the producers are not exploited. The terms of payment is also an issue. Producers prefer cash-on- delivery but the middlemen and the collectors prefer payment after they have sold the products. The latter do not wish to take the Ceramic vases of Sarawak 100 While the State and its agencies have spent a lot of effort promoting Sarawak crafts, there is a general sentiment, amongst producers who were interviewed, that more promotional efforts should be undertaken. The success of the promotional programmes has triggered a lot of interest from many parties, but from the interviews, it is learnt that the ability of the producers to fulfill customer orders is doubtful. It appears that there is a lack of integrated marketing effort. Demand has not been met with supply. Thus, there is a dire need to address the issues mentioned earlier on ensuring the availability of ready stock. A disappointed customer will have a negative perception towards Sarawak products. The use of technology to display and create awareness of products has been practiced by some producers. While this may be a good medium of communication, the interviews revealed that the producers are more concerned about improving their technical skills in product development rather than spending time upgrading their IT skills and updating their website or facebook page. It is felt that a government agency should undertake this role and provide updated information on the Sarawak craft industry as a whole. For example, www.craftcentral.com provides information on world craft products, producers and other relevant trade information. risk in financing the producers to protect themselves from slow- moving items. The safest alternative is to produce on firm orders. This arrangement, however, has its drawbacks. Unavailability of ready stocks can result in disappointing customers who may want to buy the product on impulse. The producers would also not be able to capitalise on opportunities arising from unexpected and sudden surges in demand. Someone has to assume the risk and financing responsibility to ensure a stable supply of inventory. Channels of Distribution Many producers undertake their own distribution activities, especially through participation in pasar minggu (flea market).The information on such events is often provided by agencies such as FAMA, Malaysia Cooperative Commission (SKM) and MARA. Cultural villages have been good avenues for showcasing and selling handicrafts but the authorities need to consider if more channels of marketing can be built across the state, similar to the ones in Kuching and Miri. Government-linked organisations can provide more avenues for promoting and marketing handicrafts produced by small and micro- business operators and other craftsmen who lack the appropriate resources to undertake their own marketing. Promotion Promotion activities are necessary to introduce and persuade potential buyers to buy Sarawak handicrafts.The State and its agencies, together with NGOs (like SCC, Tun Jugah Foundation,