SE Asian growth triangle will improve energy, labor sectors
SE Asian growth triangle will improve energy, labor sectors
MANILA (AFP): A proposed Indonesia-Malaysia-Thailand Growth
Triangle (IMT-GT) will improve the energy and labor situations in
these countries and boost investment in the area, said delegates
at a special conference here yesterday.
The conference, hosted by the Asian Development Bank (ADB),
however also discussed constraints on the creation of the IMT-GT
including various national restrictions as well as a need to
improve the studies aimed at creating this growth area.
The three-day conference, held at the ADB's headquarters in
Manila, is aimed at studying recommendations for the creation of
the IMT-GT.
It is hoped that by encouraging greater economic integration,
the area can enjoy the same kind of progress spawned by the
China-Taiwan-Hong Kong growth triangle.
Phisit Pakkasem, head of the Thai delegation, said ADB studies
for the creation of the IMT-GT were "comprehensive and well-
organized," but said they still contained some factual errors
which must be corrected.
He also said that the role of the private sector in the
creation of the zone must be maximized, both for their management
skills and to raise capital for projects to be undertaken in the
growth triangle.
Annuar Maaruf, the head of the Malaysian delegation, said the
creation of the IMT-GT would ease the inflow of illegal workers
into Malaysia both by regulating the entry of workers and by
encouraging Malaysians to invest in Thailand and Indonesia.
Power
Sanjaya Lall, an international energy and industry consultant
from Oxford University, also identified power integration with
Sumatran coal, liquefied natural gas and electricity being
supplied to Thailand to ease that country's power problems.
He also said Sumatran coal and power could similarly be
supplied to Malaysia adding that consortia from all three
countries could be set up, from both the private and public
sector, to set up power plants in certain areas chosen for
optimized service to the whole region.
Lall also identified potential industries for all the areas
covered by the triangle but added that lack of infrastructure,
technological capabilities, subcontracting systems, credit,
information and cheap but skilled labor, also constrained the
development of the region.
He called for more human resource development, including
training programs for foreign workers, as well as the imposition
of higher technical standards, to address these problems.
During the conference, members of the Malaysian delegation
also said different legal systems as well as domestic protection
and restrictive land and immigration policies were also
constraints.
The results of this conference will be taken up further at a
meeting between officials of the three countries at Penang in
late-September.