Latest news with #IMT-GT
The Sun
10-07-2025
- Business
- The Sun
IMT-GT boosts regional integration amid global challenges
KUALA LUMPUR: Indonesia, Malaysia, and Thailand are reinforcing their commitment to the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) as a strategy to navigate global uncertainties and enhance regional stability. The initiative aims to foster political, economic, and trade cooperation amid ongoing geopolitical volatility. Thailand's Director-General of the Department of Information at the Foreign Ministry, Nikorndej Balankura, highlighted the importance of sub-regional integration during the 58th ASEAN Foreign Ministers' Meeting (AMM). He noted that global economic challenges and the pandemic have slowed progress but stressed the continued push for resilience. 'Global economic uncertainties and the pandemic have hampered the growth and the pace of the IMT-GT advancement, so it has been slowed down a bit. However, the IMT-GT continues to pursue sub-regional integration as a strategy to mitigate negative impacts of global risk,' he told Bernama. Connectivity remains a major hurdle, with cross-border infrastructure projects like roads, railways, and legal harmonisation still in focus. The IMT-GT Implementation Blueprint 2022–2026 prioritises digital trade, data-sharing frameworks, and cross-border digital payments to boost economic corridors. 'Digital connectivity is a newer focus, and addressing physical, legal, and digital connectivity would greatly boost investment, trade, and people-to-people ties, including data flow,' Nikorndej added. On Malaysia-Thailand relations, he emphasised transforming border areas into zones of peace and prosperity. Key projects include road links between Songkhla (Thailand) and Kedah (Malaysia) and a second bridge connecting Narathiwat (Thailand) and Kelantan (Malaysia). These efforts aim to expand market access, particularly to China. Malaysia is also exploring the revival of the Sungai Kolok-Rantau Panjang rail link, which could connect to the East Coast Rail Link (ECRL). Deputy Transport Minister Datuk Hasbi Habibollah confirmed openness to discussions on reopening the 18.7-km railway track, inactive since 1982 for passengers and 2006 for freight. The 16th IMT-GT Summit in May underscored the framework's role in enhancing connectivity and sustainable growth. The 58th AMM, held under Malaysia's 2025 ASEAN Chairmanship, focuses on inclusivity and sustainability, featuring 24 ministerial-level sessions. - Bernama
The Star
08-06-2025
- Business
- The Star
Sub-regional initiatives complement AEC goals
KUALA LUMPUR: Sub-regional initiatives such as the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) and the Brunei Darussalam-Indonesia-Malaysia-Philippines East Asean Growth Area (BIMP-EAGA) have not only borne fruit significantly, but also proven to be vital complements to the Asean Economic Community (AEC) in boosting trade, investment and regional connectivity. UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said while the AEC sets a broad macroeconomic framework, prioritising sub-regional areas have also addressed developmental disparities by targeting marginalised and less-developed areas while operationalising Asean's inclusive growth agenda. 'The IMT-GT hugs the Straits of Malacca, one of the world's busiest trade routes, while the BIMP-EAGA sits along the Sulu and Sulawesi Seas, a gateway for maritime connectivity, making them natural nodes for boosting trade, investment and connectivity across Asean and beyond. 'Their strength lies in their focus on what economists call 'spatial economics' –targeting lagging regions with tailored interventions,' he told Bernama. These sub-regions were not just random patches of land, but are strategically positioned along critical maritime corridors, he added. Elaborating, Mohd Sedek said IMT-GT leans into agro-processing and tourism, capitalising on the complementarities between southern Thailand, northern Peninsular Malaysia and Sumatra, while BIMP-EAGA plays to its strengths in fisheries, renewable energy and ecotourism. 'This is not a one-size-fits-all approach; it is about leveraging local advantages to plug into regional and global value chains,' he said. Both sub-regional initiatives will develop special economic zones (SEZs), which act as economic rocket fuels by attracting foreign investments, sparking industrial growth and creating jobs through incentives and streamlined regulations. In the IMT-GT, zones such as Medan and Bukit Kayu Hitam in Malaysia, or Sei Mangkei in Indonesia, are already humming with activity, while BIMP-EAGA boasts over 60 SEZs from Bitung in Indonesia to Zamboanga in the Philippines. 'These zones are not just factories – they are engines of structural transformation, fostering 'agglomeration economies' – clusters where businesses, workers, and infrastructure feed off each other to drive growth. 'By linking these SEZs to cross-border trade and investment, IMT-GT and BIMP-EAGA are building bridges to Asean's broader economic cohesion,' he said. Mohd Sedek said Asean could leverage IMT-GT and BIMP-EAGA in sectors such as tourism, agrobusiness, renewable energy and manufacturing. Tourism remains a high-impact sector with strong growth in eco and halal tourism. For example, IMT-GT is promoting cross-border tourism under its Vision 2036. BIMP-EAGA focuses on community-based ecotourism and multi-country tourism circuits aligned with Asean standards, with strategic sites such as the Heart of Borneo and the Sulu-Sulawesi Marine Ecoregion, further enhancing the value of regional tourism offerings. Mohd Sedek said both sub-regions aim to build integrated value chains in the agrobusiness sector, with IMT-GT leading in agro-processing like palm oil and rubber, while BIMP-EAGA serves as Asean's food basket (shrimp, rice and seaweed), adding that halal food industries also benefit from this regional complementarity. He highlighted the potential of geothermal energy in Kalimantan as well as ocean energy and biodiesel, saying that the clean energy transition is important due to rising energy costs, which could benefit other Asean countries. The same applies to the manufacturing sector, where export-oriented industries in SEZs such as Medan, Sei Mangkei and Lhokseumawe are driving structural transformation and deeper integration into regional value chains. Mohd Sedek said both sub-regions have become critical platforms for advancing Asean's inclusive development agenda by targeting economically lagging and geographically marginalised regions. He said their interventions have helped narrow intra-national development gaps and improve spatial equity as well as challenges not fully addressed by the AEC. 'For instance, IMT-GT's economic corridors such as the Penang-Medan corridor has facilitated US$4.2bil (RM17.8bil) in trade in 2024, while the Malaysia-Thailand cross-border infrastructure projects have significantly enhanced connectivity. 'Similarly, BIMP-EAGA's Vision 2025 has catalysed US$2.8bil (RM11.87bil) in infrastructure investments, including major upgrades to the Davao and Bitung ports, reinforcing regional resilience and supporting Asean's broader connectivity goals under the Master Plan on Asean Connectivity 2025,' he said. Beyond infrastructure, Mohd Sedek said both sub-regional initiatives have boosted local economies by developing SEZs and strengthening regional value chains. He cited Thailand's Southern Economic Corridor – supported under IMT-GT – which generated over 15,000 jobs in 2023, with projects that not only attract foreign investment and integrate entrepreneurs into regional supply chains but also promote sectoral complementarity in agriculture, energy and tourism. Their bottom-up, project-driven approach complements Asean's top-down mechanisms, acting as decentralised building blocks of integration. 'By reinforcing trade linkages, fostering human capital development and enhancing cross-border governance, IMT-GT and BIMP-EAGA help Asean hedge against global supply chain risks and advance a more resilient, balanced and people-centric regional growth trajectory,' he further added.
Barnama
08-06-2025
- Business
- Barnama
Halal Industry Among Key Growth Drivers In IMT-GT, BIMP-EAGA
By Engku Shariful Azni Engku Ab Latif and Nur Athirah Mohd Shaharuddin KUALA LUMPUR, June 8 (Bernama) – The rapidly-growing halal industry is among nine sectors that can trigger high economic growth in the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) and the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA). The other key sectors include sustainable agriculture and agribusiness; tourism; green and renewable energy (RE); the digital economy; transport and logistics; palm oil and downstream industries; and Islamic finance, according to International Islamic University Malaysia (IIUM) associate professor of economics, Dr Muhammad Irwan Ariffin. The marine and fisheries industries are exclusive to the BIMP-EAGA sub-region, he noted. He said the halal industry in both IMT-GT and BIMP-EAGA sub-regions holds strong global demand for halal food, cosmetics, finance and tourism. "It shares Islamic values across Malaysia, Indonesia, Brunei, southern Thailand and Mindanao, making it a strategic goal to develop IMT-GT as a global halal hub," he told Bernama. Turning to the agricultural sector, Muhammad Irwan said the combination of vast arable land and a tropical climate drives strong demand for high-value crops, organic farming, agro-processing and agribusiness value chains, which are essential for supporting rural economies. As for the digital economy, he said increasing internet access in rural areas across the sub-regions has driven the growth of e-commerce, fintech and digital skills development, alongside plans for smart cities and cross-border digital corridors. "The sub-regions, which are known for their rich biodiversity, natural parks, and cultural heritage, are increasingly focusing on eco-tourism, halal tourism, and cross-border travel circuits, supported by strategic initiatives such as the Visit IMT-GT Year 2023–2025 campaign,' he continued. "In the Islamic finance sector, the large Muslim population and underserved rural communities present opportunities for inclusive growth through shariah-compliant financial services that support the development of small and medium enterprises (SMEs) across the regions."
The Sun
08-06-2025
- Business
- The Sun
Sub-regional initiatives such as IIMT-GT, BIMP-EAGA have borne fruit while complementing ASEAN Economic Community ambitions
KUALA LUMPUR: Sub-regional initiatives such as the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) and the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA) have not only borne fruit significantly but proven to be vital complements to the ASEAN Economic Community (AEC) in boosting trade, investment and regional connectivity. UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said while the AEC sets a broad macroeconomic framework, prioritising sub-regional areas have also addressed developmental disparities by targeting marginalised and less-developed areas while operationalising ASEAN's inclusive growth agenda. 'The IMT-GT hugs the Strait of Malacca, one of the world's busiest trade routes, while the BIMP-EAGA sits along the Sulu and Sulawesi Seas, a gateway for maritime connectivity, making them natural nodes for boosting trade, investment and connectivity across ASEAN and beyond. 'Their strength lies in their focus on what economists call 'spatial economics' — targeting lagging regions with tailored interventions,' he told Bernama. These sub-regions were not just random patches of land, but are strategically positioned along critical maritime corridors, he added. Elaborating, Mohd Sedek said IMT-GT leans into agro-processing and tourism, capitalising on the complementarities between southern Thailand, northern Peninsular Malaysia and Sumatra, while BIMP-EAGA plays to its strengths in fisheries, renewable energy and ecotourism. 'This is not a one-size-fits-all approach; it is about leveraging local advantages to plug into regional and global value chains,' he said. Both sub-regional initiatives will develop special economic zones (SEZs), which act as economic rocket fuels by attracting foreign investments, sparking industrial growth and creating jobs through incentives and streamlined regulations. In the IMT-GT, zones such as Medan and Bukit Kayu Hitam in Malaysia, or Sei Mangkei in Indonesia, are already humming with activity while BIMP-EAGA boasts over 60 SEZs from Bitung in Indonesia to Zamboanga in the Philippines. 'These zones are not just factories — they are engines of structural transformation, fostering 'agglomeration economies' — clusters where businesses, workers, and infrastructure feed off each other to drive growth. 'By linking these SEZs to cross-border trade and investment, IMT-GT and BIMP-EAGA are building bridges to ASEAN's broader economic cohesion,' he said. Winning sectors in IMT-GT and BIMP-EAGA regions Mohd Sedek said ASEAN could leverage IMT-GT and BIMP-EAGA in sectors such as tourism, agrobusiness, renewable energy and manufacturing. Tourism remains a high-impact sector with strong growth in eco and halal tourism. For example, IMT-GT is promoting cross-border tourism under its Vision 2036. BIMP-EAGA focuses on community-based ecotourism and multi-country tourism circuits aligned with ASEAN standards, with strategic sites such as the Heart of Borneo and the Sulu-Sulawesi Marine Ecoregion, further enhancing the value of regional tourism offerings. Mohd Sedek said both sub-regions aim to build integrated value chains in the agrobusiness sector, with IMT-GT leading in agro-processing like palm oil and rubber, while BIMP-EAGA serves as ASEAN's food basket (shrimp, rice and seaweed), adding that halal food industries also benefit from this regional complementarity. He highlighted the potential of geothermal energy in Kalimantan as well as ocean energy and biodiesel, saying that the clean energy transition is important due to rising energy costs, which could benefit other ASEAN countries. The same applies to the manufacturing sector, where export-oriented industries in SEZs such as Medan, Sei Mangkei and Lhokseumawe are driving structural transformation and deeper integration into regional value chains. IMT-GT and BIMP-EAGA advancing ASEAN Mohd Sedek said both sub-regions have become critical platforms for advancing ASEAN's inclusive development agenda by targeting economically lagging and geographically marginalised regions. He said their interventions have helped narrow intra-national development gaps and improve spatial equity as well as challenges not fully addressed by the AEC. 'For instance, IMT-GT's economic corridors such as the Penang-Medan corridor has facilitated US$4.2 billion (RM17.8 billion) in trade in 2024, while the Malaysia-Thailand cross-border infrastructure projects have significantly enhanced connectivity. 'Similarly, BIMP-EAGA's Vision 2025 has catalysed US$2.8 billion (RM11.87 billion) in infrastructure investments, including major upgrades to the Davao and Bitung ports, reinforcing regional resilience and supporting ASEAN's broader connectivity goals under the Master Plan on ASEAN Connectivity 2025,' he said. Beyond infrastructure, Mohd Sedek said both sub-regional initiatives have boosted local economies by developing SEZs and strengthening regional value chains. He cited Thailand's Southern Economic Corridor — supported under IMT-GT — which generated over 15,000 jobs in 2023, with projects that not only attract foreign investment and integrate entrepreneurs into regional supply chains but also promote sectoral complementarity in agriculture, energy and tourism. Their bottom-up, project-driven approach complements ASEAN's top-down mechanisms, acting as decentralised building blocks of integration. 'By reinforcing trade linkages, fostering human capital development and enhancing cross-border governance, IMT-GT and BIMP-EAGA help ASEAN hedge against global supply chain risks and advance a more resilient, balanced and people-centric regional growth trajectory,' he added.
The Sun
08-06-2025
- Business
- The Sun
IMT-GT, BIMP-EAGA Boost ASEAN Trade, Investment, Connectivity
KUALA LUMPUR: Sub-regional initiatives such as the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) and the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA) have not only borne fruit significantly but proven to be vital complements to the ASEAN Economic Community (AEC) in boosting trade, investment and regional connectivity. UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said while the AEC sets a broad macroeconomic framework, prioritising sub-regional areas have also addressed developmental disparities by targeting marginalised and less-developed areas while operationalising ASEAN's inclusive growth agenda. 'The IMT-GT hugs the Strait of Malacca, one of the world's busiest trade routes, while the BIMP-EAGA sits along the Sulu and Sulawesi Seas, a gateway for maritime connectivity, making them natural nodes for boosting trade, investment and connectivity across ASEAN and beyond. 'Their strength lies in their focus on what economists call 'spatial economics' — targeting lagging regions with tailored interventions,' he told Bernama. These sub-regions were not just random patches of land, but are strategically positioned along critical maritime corridors, he added. Elaborating, Mohd Sedek said IMT-GT leans into agro-processing and tourism, capitalising on the complementarities between southern Thailand, northern Peninsular Malaysia and Sumatra, while BIMP-EAGA plays to its strengths in fisheries, renewable energy and ecotourism. 'This is not a one-size-fits-all approach; it is about leveraging local advantages to plug into regional and global value chains,' he said. Both sub-regional initiatives will develop special economic zones (SEZs), which act as economic rocket fuels by attracting foreign investments, sparking industrial growth and creating jobs through incentives and streamlined regulations. In the IMT-GT, zones such as Medan and Bukit Kayu Hitam in Malaysia, or Sei Mangkei in Indonesia, are already humming with activity while BIMP-EAGA boasts over 60 SEZs from Bitung in Indonesia to Zamboanga in the Philippines. 'These zones are not just factories — they are engines of structural transformation, fostering 'agglomeration economies' — clusters where businesses, workers, and infrastructure feed off each other to drive growth. 'By linking these SEZs to cross-border trade and investment, IMT-GT and BIMP-EAGA are building bridges to ASEAN's broader economic cohesion,' he said. Winning sectors in IMT-GT and BIMP-EAGA regions Mohd Sedek said ASEAN could leverage IMT-GT and BIMP-EAGA in sectors such as tourism, agrobusiness, renewable energy and manufacturing. Tourism remains a high-impact sector with strong growth in eco and halal tourism. For example, IMT-GT is promoting cross-border tourism under its Vision 2036. BIMP-EAGA focuses on community-based ecotourism and multi-country tourism circuits aligned with ASEAN standards, with strategic sites such as the Heart of Borneo and the Sulu-Sulawesi Marine Ecoregion, further enhancing the value of regional tourism offerings. Mohd Sedek said both sub-regions aim to build integrated value chains in the agrobusiness sector, with IMT-GT leading in agro-processing like palm oil and rubber, while BIMP-EAGA serves as ASEAN's food basket (shrimp, rice and seaweed), adding that halal food industries also benefit from this regional complementarity. He highlighted the potential of geothermal energy in Kalimantan as well as ocean energy and biodiesel, saying that the clean energy transition is important due to rising energy costs, which could benefit other ASEAN countries. The same applies to the manufacturing sector, where export-oriented industries in SEZs such as Medan, Sei Mangkei and Lhokseumawe are driving structural transformation and deeper integration into regional value chains. IMT-GT and BIMP-EAGA advancing ASEAN Mohd Sedek said both sub-regions have become critical platforms for advancing ASEAN's inclusive development agenda by targeting economically lagging and geographically marginalised regions. He said their interventions have helped narrow intra-national development gaps and improve spatial equity as well as challenges not fully addressed by the AEC. 'For instance, IMT-GT's economic corridors such as the Penang-Medan corridor has facilitated US$4.2 billion (RM17.8 billion) in trade in 2024, while the Malaysia-Thailand cross-border infrastructure projects have significantly enhanced connectivity. 'Similarly, BIMP-EAGA's Vision 2025 has catalysed US$2.8 billion (RM11.87 billion) in infrastructure investments, including major upgrades to the Davao and Bitung ports, reinforcing regional resilience and supporting ASEAN's broader connectivity goals under the Master Plan on ASEAN Connectivity 2025,' he said. Beyond infrastructure, Mohd Sedek said both sub-regional initiatives have boosted local economies by developing SEZs and strengthening regional value chains. He cited Thailand's Southern Economic Corridor — supported under IMT-GT — which generated over 15,000 jobs in 2023, with projects that not only attract foreign investment and integrate entrepreneurs into regional supply chains but also promote sectoral complementarity in agriculture, energy and tourism. Their bottom-up, project-driven approach complements ASEAN's top-down mechanisms, acting as decentralised building blocks of integration. 'By reinforcing trade linkages, fostering human capital development and enhancing cross-border governance, IMT-GT and BIMP-EAGA help ASEAN hedge against global supply chain risks and advance a more resilient, balanced and people-centric regional growth trajectory,' he added.
