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.