S'pore, Malaysia, Indonesia sign growth acord
S'pore, Malaysia, Indonesia sign growth acord
KUALA LUMPUR (AFP): Singapore, Indonesia and Malaysia Saturday signed a pact to formalize a growth triangle they have tried to create since 1991 to boost cross-border economic ties.
The growth triangle -- encompassing Singapore, the southern Malaysian state of Johore and Indonesia's Riau province -- would pave the way for numerous trilateral and bilateral business deals, officials said.
"In the highly-competitive global economic environment, it makes sense for Singapore, Johore and the Riaus to pool their complementary strengths and compete against other regions for world markets," Singapore Deputy Prime Minister Lee Hsein Loong said.
Lee signed a formal memoranda of understanding on the growth triangle with Malaysia's International Trade and Industry Minister Rafidah Aziz and Indonesia's Coordinating Minister for Industry and Trade Hartarto in the Johore Baru capital of Johore.
Lee said the growth triangle would strengthen both economic and political ties among the three countries.
Despite the absence of a formal pact, officials said they have tried to develop the area since 1991 after realizing the enormous value of business links and economic potential among the three countries.
"Even in the absence of a formal government-to-government agreement, Singapore-Johore ties have proposed," Lee said, adding that it was the same with Indonesia.
Singapore firms invested more than 1.5 billion ringgit (US$600 million) in Johore between 1990 and 1993 and created more than 37,000 jobs, Lee said.
He said in the Riaus, more than S$500 million (US$350 million) have been invested in recent years, creating some 32,000 jobs. Officials said a framework for bilateral and trilateral cooperation would be drafted for the various sectors of economic activities in the triangle.
Private companies would provide the main input for the cooperation, which would be centered on manufacturing, agriculture, forestry, tourism, shipping and communications.
Exchange of financial research, human resources and goods and services are also expected to feature prominently.
Malaysia has another growth triangle in its northern territory with southern Thailand and Indonesia's North Sumatra and Aceh provinces. The area has already seen more than 1.3 billion ringgit in proposed investments since July last year.