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.