ADB identifies 50 projects for growth triangle
MEDAN, North Sumatra (JP): The Asian Development Bank (ADB) has identified 50 projects, policies and programs for the establishment of the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) cooperation, a vice president of the bank says.
William R. Thomson said in the third senior official meeting on the IMT-GT here yesterday the bank has identified the importance of establishing a Tripartite Marine Fisheries Development Policy to govern cooperation in fishing in border waters.
Thomson presented a mid-term ADB study prepared to assist the countries in determining their future directions and pattern of economic collaboration.
"Cooperation among the three countries on marine fisheries offers considerable scope for increased production and trade and development," he said.
Thomson added that the aim of the policy and projects within the fisheries subsector is to maximize the benefits from the complementarities which exist in marine fisheries by overcoming past and present constraints and by utilizing the natural fish resources from the deep sea and coastal waters of northern Sumatra.
Thomson said the three countries should also develop transportation and communication networks in the IMT-GT region, which will involve the northern provinces of Indonesia's Sumatra Island, the western states of Malaysia and the southern provinces of Thailand.
A special IMT-GT telecommunication zone should also be established to support business activities in the cooperation area, he said.
Deregulation
He said the bank also recommends introducing deregulatory measures on customs procedures to ease trade.
Thomson said laws and procedures need to be modified to fit the needs of new development strategies which focus on regional economic cooperation.
"In our opinion, the establishment of a border development zone between Malaysia and Thailand is a key step in accelerating the establishment of the IMT-GT," Thomson said.
ADB consultants have identified a geographical zone of about 40 kilometers on both sides of the border areas for the development zone, he added.
Thomson suggested that the joint infrastructure development be supported by simple customs procedures, free migration and free labor movement.
The third meeting of IMT-GT, which is being held in Medan from May 31 to June 2, is attended by delegations from the three countries. The meeting is scheduled to be followed today by a ministerial meeting, where the Indonesian delegation will be led by Coordinating Minister for Industry and Trade Hartarto.
In anticipation of occasional problems that may arise as trade and investment links increase, the ADB suggests that an institution be set up as a forum for regular discussions of perceived problems.
Thomson also noted that in the critical sector of labor mobility there was no comprehensive policy governing labor flows from the exporting countries of Thailand and Indonesia to Malaysia.
"This lack (of policies) has led to increasing illegal migration and business transaction costs and reduced the potential of the growth triangle concept," he said. (rmn)