Malaysia to invest $5 billion in IMTGT

JAKARTA (JP): Malaysian businesspeople have pledged to invest about US$5 billion in the triangular area linking northern Sumatra, western Malaysia and southern Thailand.

The deputy chairman of Malaysian Chamber of Commerce and Industry, Abdul Rahman Maidin, said over the weekend part of the money would be invested in Aceh's plantations, industrial and trade sectors.

"But I cannot yet identify them. What's important is that they will certainly invest in the bordering areas of Indonesia, Malaysia and Thailand," he said on the sidelines of the Business Council Meeting of the Indonesia, Malaysia, Thailand Growth Triangle Cooperation.

Rahman, who led a Malaysian delegation to the meeting, said several Malaysian businesspeople had made previous investments in the three sectors of the three ASEAN nations.

ASEAN groups Brunei, Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.

Other sub-regional cooperation agreements include the triangular area between Singapore, southern Malaysia and Indonesian province of Riau.

Rahmad said that of 43 memorandums of understanding businesspeople had signed for the western Malaysia, Aceh and Thailand growth triangle, only 14 had been realized.

Three of the 14 realized ones are in Aceh. They are a molding plant in Aceh Besar, an ice plant in Sabang (Weh island) and a direct flight service by Pelangi Air linking Blang Bintang and Penang in Malaysia.

Asked about the difficulties of realizing business projects under the subregional program, Rahman cited administration problems and in particular the procedures to get business licenses.

"The long procedure to get business licenses stands in the way of realizing business projects in Aceh. I think if the problem can be tackled, many Malaysians will invest here (Indonesia)," he said.

Aceh Governor Syamsuddin Mahmud called on subregional businesspeople to find solutions to administration problems.

"I'm sure that each of you has a solution to offer to solve the problem," the governor said in his opening remarks to the business council meeting as reported by Antara.

He said infrastructure was not a big problem. Only administration. (bnt)