IMT-GT businesses need to explore coproduction
IMT-GT businesses need to explore coproduction
KUALA LUMPUR (DPA): Entrepreneurs from the Indonesia-Malaysia- Thailand (IMT-GT) need to explore coproduction as a means to speed up economic development in sub-region, said the economic advisor to the Malaysian government, Daim Zainuddin, Saturday.
The concept, which has been around for many years, has not been fully explored, said Daim, a former finance minister.
It had even also been deployed by multi-national corporations in the region, he said at the opening of the Seventh Tripartite IMT-GT Ministerial Meeting.
Indonesia's Minister of Tourism, Posts and Telecommunications, Joop Ave, and Thailand's ambassador to Malaysia, Suchitra Hiranprueck, also attended the one-day meeting.
Coproduction calls for producing competitive products at cheaper rates but at better quality by combining expertise and resources in the growth region.
For example, Daim said Malaysia, which has expertise in palm oil and rubber production, could transfer its technology to Thailand and Indonesia, which could provide cheaper labor and abundant plantation land to produce the products.
He also said there is a need to seriously re-examine efforts to ensure that the grouping fully covered the coproduction concept and other opportunities available to enhance further its development and cooperation.
Daim said there is also the need to enhance smart partnerships among domestic investors for the IMT-GT to strengthen the sub regional grouping's capabilities.
In expediting the co-production concept, he said there is the need to develop an effective development partnership between the state and the private sector.
Daim also reminded the grouping of its commitment to a free market while maintaining its growth process.
The current economic slowdown, which had affected member nations, should be looked upon as a challenge by the private sector to re-evaluate their strategies, "and to look closely at what they are doing and trim the fat wherever possible," he said.
In view of the current financial crisis, Daim said the IMT-GT members should also consider issues of the sustainability of investments and the likely implications of the changing structure of trade and other economic factors.
"Our success will depend on how we manage our complementarities to produce locational advantages to stimulate trade and attract investments," he said.
Daim said there is a need for the sub-region to venture into other sectors such as tourism besides trade/investment and infrastructure.
Since its inception in 1994, the IMT-GT has witnessed the signing of 66 MOUs representing 18 billion ringgit (US$6 billion) worth of projects. Twenty-eight projects were signed in the trade and investment sector, 13 in infrastructure, 10 in agriculture, six in tourism, five in human resource development and four in services.
Meanwhile, Indonesia, in its effort to improve trade ties with Thailand under the IMT-GT has set up a consulate-general in Songkhla, southern Thailand.
The office has been operational in the last six months, said Joop Ave.
He said the Indonesian government, which is dissatisfied with the progress of business joint ventures under the IMT-GT since its inception in 1994, hoped that the office could to initiate commercial understandings between the two countries.
Thailand's ambassador to Malaysia, Hiranprueck, who is representing her government since the Thai ministers are unable to attend because of the country's political crisis, also expressed dissatisfaction on the slowness in implementing MOUs signed since 1994.
IMT-GT cooperation "is seen to be moving slowly and lagging behind other sub-regional cooperation schemes and there is a need to reaffirm the project viability and mutual benefits," she said.