Assessing the Socioeconomic and Digital Inclusion Impacts of Pusat Internet in Rural Sarawak, Malaysia

ABSTRACT This study explores the socioeconomic impacts of ICT4D initiatives by using Stakeholder Theory, with a particular focus on the Pusat Internet (Telecenter) project in rural Sarawak, Malaysia. Employing a qualitative approach, the research draws on semi‐structured interviews with 40 participants, including community leaders, members, and entrepreneurs. The findings highlight the transformative potential of ICT4D projects, revealing significant positive short‐ and medium‐term outcomes such as improved communication, increased educational opportunities, empowered online entrepreneurship, and strengthened community development and social cohesion. Long‐term impacts include enhanced personal growth, reduced digital divide, better access to public service delivery, and greater women empowerment, underscoring the project's success. However, the study also identifies key challenges, including reduced face‐to‐face interactions, excessive computer gaming among children, and inadequate facility upgrades, pointing to areas in need of improvement. Grounded in Stakeholder Theory, this research contributes to the ICT4D literature and offers practical recommendations for policymakers aiming to design more effective and sustainable ICT4D initiatives. These insights are crucial for maximizing societal benefits while mitigating potential negative externalities in future projects.