ECONOMIC DIPLOMACY IN PRACTICE: MATRADE’S ROLE IN ENHANCING EXPORT READINESS AND EXPORT-LED GROWTH IN SARAWAK

Abstract

Economic diplomacy has become an important instrument for enhancing export competitiveness and economic growth in developing economies. In Malaysia, MATRADE functions as the principal trade promotion institution, yet its role in supporting export readiness among mid-tier companies in peripheral regions such as Sarawak remains underexamined. This study investigates how MATRADE operates as an economic diplomacy instrument in enhancing export readiness and supporting export-led growth among Sarawak's mid-tier companies. A qualitative institutional case study was employed using an expert interview with the Director of MATRADE Sarawak, questionnaire responses from three selected mid-tier companies, and documentary analysis. The findings show that MATRADE facilitates export development through market intelligence, capability-building programmes, and strategic networking, while its effectiveness depends on firm-level operational readiness, institutional coordination, and the adaptation of national programmes to regional conditions. The study further finds that standardised export promotion initiatives require greater localisation to address Sarawak's distinctive geographical and infrastructural constraints. These findings contribute to the economic diplomacy literature by demonstrating how export promotion is operationalised at the subnational level and provide policy insights for strengthening institutional support for regional export development in developing economies.