Jakarta, Bangkok, KL sign 40 deals

JAKARTA (JP): Indonesia, Malaysia and Thailand have signed 40 agreements worth US$3.2 billion for business activities in their sub-regional cooperation areas, an official said.

"Most of the agreements are related to infrastructure projects which cost a total of about $2 billion," the Malaysian minister for the coordination the Indonesia-Malaysia-Thailand Growth Triangle, was quoted over the weekend by Antara as saying in Kuala Lumpur.

He said that the infrastructure projects include the construction of railway facilities, roads and two oil and gas pipelines.

The railway and road projects will connect two ports on Penang island in northwest Malaysia and Songkha in southern Thailand.

The two pipelines will help reduce the volume of gas shipments through the Malacca Strait and support the establishment of new petrochemical plants and downstream petroleum-based industrial factories, he said.

Zainuddin said that the infrastructure projects also include the establishment of telecommunication facilities, power stations and industrial estates.

"The development of the industries will increase job opportunities and help Malaysia solve its illegal worker problems," he said.

He anticipates that the development of industrial and infrastructure facilities in northern Sumatra and southern Thailand will encourage illegal workers in Malaysia to return to their home countries.(04)