INTRODUCTION
Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) idea was initiated by former Prime Minister of Malaysia, H.E. Tun Dr. Mahathir Mohammad. In 1993, the former President of Indonesia, H.E. Suharto, Prime Minister of Thailand, H.E. Chuan Leekpai and H.E. Tun Dr. Mahathir Mohammad was endorsed the formalisation of IMT-GT in Langkawi, Malaysia.
IMT-GT provides a sub-regional framework for accelerating economic cooperation and integration of the member states and provinces in the three countries.
The IMT -GT promotes private-sector led economic growth and facilitates the development of the sub-region as a whole by exploiting the underlying complementarities and comparative advantages of the member countries.
IMT-GT MISSION & VISION
IMT-GT envisions a seamless, progressive, prosperous and peaceful subregion with improved quality of life.
WORKING GROUP
The seven strategic pillars denote the key focus areas that are expected to produce the most significant economic and social impact on the IMT-GT subregion. These pillars are divided into three Lead Focus Areas that are supported by four Enablers.
The Lead Focus Areas comprise the Agriculture & Agro-Based Industry, Tourism, and Halal Products and Services Pillars. It is intended that they will spearhead IMT-GT cooperation and integration for the next two decades. These lead focus areas were selected based on careful evaluation of the comparative and competitive advantage of the subregion.
The four Enablers will support the Lead Focus Areas and comprise the Transport and ICT Connectivity, Trade and Investment Facilitation, Environment, and Human Resource Development, Education and Culture Pillars.
STRATEGIES TO SPEARHEAD GROWTH
TRADE AND INVESTMENT FOCUS AREA STRATEGIES
The key strategies of the Trade and Investment Facilitation Focus Area are:
1. Simplify technical, administrative and regulatory barriers to trade in goods and services and investment.
2. Improve logistics services along supply and value chains.
3. Increase trade and investment promotion activities.
They were formulated to address the major challenges facing the subregion, as follows:
• Relatively high business transaction costs owing to the presence of technical, administrative and regulatory barriers to intra-IMT-GT trade and investment.
• Supply chain challenges for companies investing in cross-border trade due to lack of simplification and standardisation of cross-border formalities and procedures. (e.g., CIQ rules and procedures)
• There is a pressing need to incentivise the private sector players to utilise IMT-GT as a platform to expand their business interests as there are signs showing that the private sector is beginning to lose interest in IMT-GT.
• Increased competition for FDI across ASEAN and beyond amid a challenging global economic environment.
Implementation of the strategies is expected to increase intra and inter-IMT-GT trade and investment and enhance the subregion's attractiveness to domestics and foreign investors. This will go a long way to spur the development and growth of the Lead Focus Areas, i.e., the agriculture and agro-based, tourism and Halal industries.
Trade and Investment Cooperation Division
Department of Foreign Trade
January, 2025
Source: imtgt.org