Small communities living on the margin of development generally face a myriad of issues and challenges. Paradoxically, although livelihood is a major concern for these communities, their integration into the mainstream of development seems a remote and endless problem. This article, therefore, has three objectives. Firstly, it discusses the socio-economic dynamics of the Sarawak-Kalimantan border communities whose villages are obscured from the mainstream of development. Lately, villages and small townships along this border had caught the attention of the media, ** Corresponding author Sociologija i prostor, 51 (2013) 197 (3): 547-562 548S o c i o l o g i j a i p r o s t o r politicians, planners and researchers. This was the consequent result of media highlights on Malaysia-Indonesia border disputes and cultural issues, which were further expanded to encompass matters relating to national security and economic interests of both countries. However, the socio-economic plights of these border communities were seldom articulated. Secondly, based on case studies conducted between 2009 and 2010, this paper focuses on issues of livelihood and sustainability of these border communities, particularly the Bidayuh ethnic living in Serikin (Sarawak) and JagoiBabang (West Kalimantan). The studies especially focused on the participation of these villagers in the socio-economic spheres within the border areas, and also assessed to what extent the livelihoods of these villagers were influenced and affected by such dynamics. Lastly, by exploring the possible theoretical explanation of the unique social phenomenon taking place at the margin of development in Malaysia, this article examines the embedded cultural and social affiliations which help sustain the tradition of economic exchange between communities on both sides of the borders.