Inception of the IMT-GT project: Desire for Tripartite Cooperation
Indonesia-Malaysia-Thailand Growth Triangle Development Project (IMT-GT) has been initiated since 1993 by the three nations; namely Thailand, Malaysia, and Indonesia as to upgrade their economic cooperation. The very first effort was an informal discussion, among the three countries who then agreed with the conceptual basis and the implementation framework of the project. In this regard, the member countries requested the Asian Development Bank (ADB) for technical aid so as to study the cooperation scope and its feasibility.
The IMT-GT Development Project covers two Indonesian provinces four Northern Sumatra and Aceh, four Northern Malaysian States of Kedah, Penang, Perak and Perlis. and also five Southern-most provinces of Thailand : Songkhla, Yala, Pattani, Narathiwat, and Satun. The main objectives are to promote and accelerate the economic and social development in the sub-region, to maximize utilization of the mutual economic resources, and to cooperate in trade, investment, and technology transfers to achieve lower production cost to be competitive in the world market. It also aims at developing infrastructure networks such as transportation, telecommunications, and basic facilities,as well as upgrading people's quality of life in the IMT-GT zone.
As for Thailand, the Office of the National Economic and Social Development Board (NESDB) has been assigned to set the scope and undertake feasibility studied of the IMT-GT project, while serving as a coordinator with the other two counterparts. NESDB conducted the study framework and submitted it to the Central Planning Units of Malaysia and Indonesia, on February 17, 1993.
tripartite Meeting : Pave the way to concrete operations.
Five tripartite meetings of IMT-GT were organized, as the results can be summarized as follows:
The First-Four IMT-GT Meetings
Malaysia hosted the First Ministerial Meeting (MM) and the Senior Official Meeting (SOM), during July 19-20. 1993. The Meetings granted unanimous approval to the conceptual basis cooperation, with the governments to accelerate private sector-led economic growth by the Joint Business Council (BC) of the three nations.
The Second Tripartite Meeting was held during January 19-21, in Thailand. The Meeting was consisted of the BC Meeting, the SOM and the MM. The Meetings considered the inception study report, proposed by ADB, and the co-operation projects proposed by the Joint Business Councils. There comprised 23 projects in six sectors, namely Transportaion, Industry and Energy, Agriculture and Fisheries, Tourism, Trade and Investment, and Labor.
The Third IMT-GT meeting, during May 31 to June 3, 1994, was hosted by Indonesia, which was organized at the MM and BC Meetings. The Meetings took into account the proposal of the Business Council to include 97 projects in seven sectors under the co-operation scheme. Approval was also granted to separate the Industry sector from the Energy sector. and to allow the private sector participation in the meetings of representatives of relevant agencies as to expedite several investment projects.
The Fourth IMT-GT Meeting was held in Malaysia during December 14- 16, 1994, comprising the BC, the SOM and the MM. The final report conducted by ADB and guidelines for sectoral operations were brought up for consideration.
Results of the first four IMT-GT meeting have brought about concrete operations n various aspects. Several IMT-GT projects have been started prior to the set target, such as the extension of opening hours of the Malaysian-Thai border checkpoints (6.00-18.00; Thai time), at Sadao- Bukit Kaya Hitam/Sungai Golok-Rantan-Panjang/and Tung Mo-Padang Besar. These include the expansion of air linkages of the three countries, and acceleration of government supports in certain projects, such as the Penang-Songkhla Land Bridge Project, the Satun Power Plant, the Joint Television Project, and Teleport Project.
The Fifth Tripartite Meeting
The latest, the Fifth Tripartite IMT-GT Meeting was host by Thailand at the Genting Hotel, Sungai Golok, Narathiwat during December 19- 22, 1995. The BC Meeting took place on December 19, the SOM and MM were held during December 20-21 and 22, respectively. Deputy Prime Minister Amnuay Viravan presided over the Ministerial Meeting.
Main Topics of this meeting included the results of all Working Group meetings categorized by sectors, the project proposals of the Joint Business Council, and also the future operational guidelines. There were 97 projects altogether, divided into eight sectors, namely (1) Land Transportation, (2) Telecommunication, (3) Energy, (4) Agriculture and Fishery, (5) Industry, (6) Tourism, (7) Trade Investment and Finance, (8) Human Resources Development and Labor Mobility. Results of the Fifth meeting can be summarized as follows.
Trade Investment and Finance
The Meeting agreed to expedite programs/projects as suggested by ADB. A working group, according to the Meeting, should be set up to seek guidelines to eliminate non-tariff barriers that hinder trade and investment. As for co-production activities, the meeting suggested to put them on pending until in the finalization of the ASEAN Industrial Cooperation Scheme (AICO).
Moreover, the meeting supported the establishment of the Interest Free Banking, in the IMT-GT zone which is now being studied.
Customs
The Meeting took note of the extension of opening hours for all Malaysia-Thai border check-points, and the on-line computer system in custom services to be enforced during 1997-1998. A single customs declaration form will be adopted in the growth triangle area.
Tourism
Approval was granted to the Tarutao-Langkawi Environmental Protection Project as a natural reserved area which would become another tourist destination in this zone. More details in the regard, however, should be investigated.
Moreover, The Meeting took note of the electronic coherence system, notably smart card, which may be applied to the IMT-GT area. Also considered at the meeting was Indonesia's willingness to participate in the joint tourism-promotion program, including Thailand's request for the extension of opening hours at Betong-Pangkalan Hulu Border checkpoint.
The Meeting took note of information given by the Indonesian Government to facilitate the flow of cross border tourist vehicles through newly appointed entry points in Sumatra Island. In this regard, Indonesia will introduce new regulations which cover several aspects on vehicle liability insurance, customs and guarantee arrangements.
Transportation
Sea linkages
The Meeting took into account the proposal of the Technical Expert Group for harmonizing rules and regulations on non-convention vessels of vessels with water displacement capacity than 500 tons in exclusive of the Safety of life at Sea Convention Solas.
Air linkages
The Meeting took note of proposal for Phuket to be included in the air-transportation link since it is designated to become an international gateway. Also to be included in the air link was the West Sumatra Province (Padang).
Telecommunications
The Meeting endorsed the proposal of a Working Group on telecommunications that private sector investment should be enhanced. They also approved on the Special Telecommunications Zone Project, which should be listed as the top priority for linking the telecommunication networks, and ADB feasibility studies in this regard will be sought.
Human Resources Development and Labor Mobility
Approval was granted to coordinate within the Tripartite Committee to avoid duplication of activities. Participants also suggested that the study of labor demands in the IMT-GT zone should be considered at the next Working Group meeting.
The IMT-GT Uninet Project for Human Development, especially designed for the joint personnel development of the three countries, proposed by Thailand was approved. Seven universities, located in the area, will be a center for human development, and the IMT-GT Uninet was assigned to be a job service center.
Agriculture and Fisheries
The Meeting endorsed the projects of the Technical Working Group on fisheries for carrying out the aquaculture resource assessment, fishery vessel and gear manufacturing, the development of port and its infrastructures concerned. Unanimous agreement was also given to the Technical Working Group's proposal concerning the common border wholesale market, which will facilitate the transportation of agricultural products, information exchange in crop and vegetable production, and additional studies in the Agricultural and Fisheries goods.
The Meeting took note that Thailand will act as a lead country in preparing project proposal on joint survey and fisheries resource assessment, fishery vessel and gear manufacturing, and development of coastal aquaculture.
Energy
The Meeting granted unanimous agreement to speed up energy cooperation in this zone by promoting private sector investment. Furthermore, they noted that the supply of natural gas in the North Sumatra and Natuna of Indonesia is still available for further uses.
In addition to the above-mentioned results of the meeting, the Tripartite IMT-GT Meeting also considered the establishment of an information exchange service center for the IMT-GT zone. The Meeting accepted to use modern information technology for inter-communications among them, the meeting noted the SITTDEC (South Investment Trade and Technology Data Exchange Center)'s proposal and NECTEC (National Electronics and Computer Technology Center)'s system to consider using existing technologies for the information exchange.
At the end of the meeting, Thai Deputy Prime Minister Amnuay Viravan delivered closing remarks that the IMT-GT cooperation will definitely strengthen inter-relationship in this sub-region. The member countries should increasingly strengthen their development potentials to compete in the world economy and to upgrade the quality of life of the people in this sub-region.
--Development News Bulletin, National Economic and Social Development Board, Volume 11, No. 3--
Indonesia-Malaysia-Thailand Growth Triangle Development Project (IMT-GT) has been initiated since 1993 by the three nations; namely Thailand, Malaysia, and Indonesia as to upgrade their economic cooperation. The very first effort was an informal discussion, among the three countries who then agreed with the conceptual basis and the implementation framework of the project. In this regard, the member countries requested the Asian Development Bank (ADB) for technical aid so as to study the cooperation scope and its feasibility.
The IMT-GT Development Project covers two Indonesian provinces four Northern Sumatra and Aceh, four Northern Malaysian States of Kedah, Penang, Perak and Perlis. and also five Southern-most provinces of Thailand : Songkhla, Yala, Pattani, Narathiwat, and Satun. The main objectives are to promote and accelerate the economic and social development in the sub-region, to maximize utilization of the mutual economic resources, and to cooperate in trade, investment, and technology transfers to achieve lower production cost to be competitive in the world market. It also aims at developing infrastructure networks such as transportation, telecommunications, and basic facilities,as well as upgrading people's quality of life in the IMT-GT zone.
As for Thailand, the Office of the National Economic and Social Development Board (NESDB) has been assigned to set the scope and undertake feasibility studied of the IMT-GT project, while serving as a coordinator with the other two counterparts. NESDB conducted the study framework and submitted it to the Central Planning Units of Malaysia and Indonesia, on February 17, 1993.
tripartite Meeting : Pave the way to concrete operations.
Five tripartite meetings of IMT-GT were organized, as the results can be summarized as follows:
The First-Four IMT-GT Meetings
Malaysia hosted the First Ministerial Meeting (MM) and the Senior Official Meeting (SOM), during July 19-20. 1993. The Meetings granted unanimous approval to the conceptual basis cooperation, with the governments to accelerate private sector-led economic growth by the Joint Business Council (BC) of the three nations.
The Second Tripartite Meeting was held during January 19-21, in Thailand. The Meeting was consisted of the BC Meeting, the SOM and the MM. The Meetings considered the inception study report, proposed by ADB, and the co-operation projects proposed by the Joint Business Councils. There comprised 23 projects in six sectors, namely Transportaion, Industry and Energy, Agriculture and Fisheries, Tourism, Trade and Investment, and Labor.
The Third IMT-GT meeting, during May 31 to June 3, 1994, was hosted by Indonesia, which was organized at the MM and BC Meetings. The Meetings took into account the proposal of the Business Council to include 97 projects in seven sectors under the co-operation scheme. Approval was also granted to separate the Industry sector from the Energy sector. and to allow the private sector participation in the meetings of representatives of relevant agencies as to expedite several investment projects.
The Fourth IMT-GT Meeting was held in Malaysia during December 14- 16, 1994, comprising the BC, the SOM and the MM. The final report conducted by ADB and guidelines for sectoral operations were brought up for consideration.
Results of the first four IMT-GT meeting have brought about concrete operations n various aspects. Several IMT-GT projects have been started prior to the set target, such as the extension of opening hours of the Malaysian-Thai border checkpoints (6.00-18.00; Thai time), at Sadao- Bukit Kaya Hitam/Sungai Golok-Rantan-Panjang/and Tung Mo-Padang Besar. These include the expansion of air linkages of the three countries, and acceleration of government supports in certain projects, such as the Penang-Songkhla Land Bridge Project, the Satun Power Plant, the Joint Television Project, and Teleport Project.
The Fifth Tripartite Meeting
The latest, the Fifth Tripartite IMT-GT Meeting was host by Thailand at the Genting Hotel, Sungai Golok, Narathiwat during December 19- 22, 1995. The BC Meeting took place on December 19, the SOM and MM were held during December 20-21 and 22, respectively. Deputy Prime Minister Amnuay Viravan presided over the Ministerial Meeting.
Main Topics of this meeting included the results of all Working Group meetings categorized by sectors, the project proposals of the Joint Business Council, and also the future operational guidelines. There were 97 projects altogether, divided into eight sectors, namely (1) Land Transportation, (2) Telecommunication, (3) Energy, (4) Agriculture and Fishery, (5) Industry, (6) Tourism, (7) Trade Investment and Finance, (8) Human Resources Development and Labor Mobility. Results of the Fifth meeting can be summarized as follows.
Trade Investment and Finance
The Meeting agreed to expedite programs/projects as suggested by ADB. A working group, according to the Meeting, should be set up to seek guidelines to eliminate non-tariff barriers that hinder trade and investment. As for co-production activities, the meeting suggested to put them on pending until in the finalization of the ASEAN Industrial Cooperation Scheme (AICO).
Moreover, the meeting supported the establishment of the Interest Free Banking, in the IMT-GT zone which is now being studied.
Customs
The Meeting took note of the extension of opening hours for all Malaysia-Thai border check-points, and the on-line computer system in custom services to be enforced during 1997-1998. A single customs declaration form will be adopted in the growth triangle area.
Tourism
Approval was granted to the Tarutao-Langkawi Environmental Protection Project as a natural reserved area which would become another tourist destination in this zone. More details in the regard, however, should be investigated.
Moreover, The Meeting took note of the electronic coherence system, notably smart card, which may be applied to the IMT-GT area. Also considered at the meeting was Indonesia's willingness to participate in the joint tourism-promotion program, including Thailand's request for the extension of opening hours at Betong-Pangkalan Hulu Border checkpoint.
The Meeting took note of information given by the Indonesian Government to facilitate the flow of cross border tourist vehicles through newly appointed entry points in Sumatra Island. In this regard, Indonesia will introduce new regulations which cover several aspects on vehicle liability insurance, customs and guarantee arrangements.
Transportation
Sea linkages
The Meeting took into account the proposal of the Technical Expert Group for harmonizing rules and regulations on non-convention vessels of vessels with water displacement capacity than 500 tons in exclusive of the Safety of life at Sea Convention Solas.
Air linkages
The Meeting took note of proposal for Phuket to be included in the air-transportation link since it is designated to become an international gateway. Also to be included in the air link was the West Sumatra Province (Padang).
Telecommunications
The Meeting endorsed the proposal of a Working Group on telecommunications that private sector investment should be enhanced. They also approved on the Special Telecommunications Zone Project, which should be listed as the top priority for linking the telecommunication networks, and ADB feasibility studies in this regard will be sought.
Human Resources Development and Labor Mobility
Approval was granted to coordinate within the Tripartite Committee to avoid duplication of activities. Participants also suggested that the study of labor demands in the IMT-GT zone should be considered at the next Working Group meeting.
The IMT-GT Uninet Project for Human Development, especially designed for the joint personnel development of the three countries, proposed by Thailand was approved. Seven universities, located in the area, will be a center for human development, and the IMT-GT Uninet was assigned to be a job service center.
Agriculture and Fisheries
The Meeting endorsed the projects of the Technical Working Group on fisheries for carrying out the aquaculture resource assessment, fishery vessel and gear manufacturing, the development of port and its infrastructures concerned. Unanimous agreement was also given to the Technical Working Group's proposal concerning the common border wholesale market, which will facilitate the transportation of agricultural products, information exchange in crop and vegetable production, and additional studies in the Agricultural and Fisheries goods.
The Meeting took note that Thailand will act as a lead country in preparing project proposal on joint survey and fisheries resource assessment, fishery vessel and gear manufacturing, and development of coastal aquaculture.
Energy
The Meeting granted unanimous agreement to speed up energy cooperation in this zone by promoting private sector investment. Furthermore, they noted that the supply of natural gas in the North Sumatra and Natuna of Indonesia is still available for further uses.
In addition to the above-mentioned results of the meeting, the Tripartite IMT-GT Meeting also considered the establishment of an information exchange service center for the IMT-GT zone. The Meeting accepted to use modern information technology for inter-communications among them, the meeting noted the SITTDEC (South Investment Trade and Technology Data Exchange Center)'s proposal and NECTEC (National Electronics and Computer Technology Center)'s system to consider using existing technologies for the information exchange.
At the end of the meeting, Thai Deputy Prime Minister Amnuay Viravan delivered closing remarks that the IMT-GT cooperation will definitely strengthen inter-relationship in this sub-region. The member countries should increasingly strengthen their development potentials to compete in the world economy and to upgrade the quality of life of the people in this sub-region.
--Development News Bulletin, National Economic and Social Development Board, Volume 11, No. 3--