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Review Implementation Blueprint 2017-2021
1
REVIEW OF IMT-GT
IMPLEMENTATION BLUEPRINT
2017-2021
Review Implementation Blueprint 2017-2021
2
CONTENTS
Forewords ...........................................................................................................................
Executive Summary ........................................................................................................
Part 1 - Introduction ........................................................................................................
A. Background of IMT-GT Implementation Blueprint 2017 - 2021 ...............................
B. Rationale, Objective and Process of Review Implementation Blueprint 2017 -2021
...................................
C. Timeline ...................................................................................................................
D. Constraint and Limitation ..........................................................................................
Part 2 - Economic Corridor Programmes .................................................................
Part 3 - Review of Sector Strategies and Project Implementation .................
A. Focus Area Under Implementation Blueprint 2017 - 2021 .................................................
Agriculture and Agro-Based Industry .................................................................
Tourism ..............................................................................................................
Halal Product and Services ..............................................................................
Trade and Investment ........................................................................................
Transport and ICT Connectivity .........................................................................
Environment .......................................................................................................
Human Resource Development, Education and Culture ...................................
Part 3 – Analysis of Completion Vs Vision Goals and Target of IMT-GT ....
A. IMT-GT Implementation Blueprint 2017 - 2021 Priority Targets
............................................
B. Current Completion of Implementation Blueprint 2017 - 2021 .................................
Part 4 - Conclusion ..............................................................................
Review Implementation Blueprint 2017-2021
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Foreword
Centre for IMT-GT Subregional Cooperation is pleased to present the Review
Implementation Blueprint 2017-2021. The review is aimed to measure the targets
achieved and assess challenges in implementation of Indonesia-Malaysia-Thailand
Growth Triangle (IMT-GT) cooperation towards its Vision 2036. It could be utilised to
scale up the programmes/projects/ in the effort to accelerate subregional integration.
From year to year, IMT-GT is getting stronger and more multidimensional with new
avenues of programmes and projects under seven strategic pillars. As the secretariat of
IMT-GT cooperation, CIMT has strong commitment to do its best in assisting,
supporting and facilitating member countries for an effective and efficient subregional
cooperation.
I would like to take this opportunity to thank Member Countries, all National
Secretariats, Working Groups and Sub Working Groups, UNINET, IMT-GT Joint Business
Council and IMT-GT Development Partner for their great cooperation and contribution
to the work of the Review with CIMT.
Director CIMT
Mr. Firdaus Dahlan
Review Implementation Blueprint 2017-2021
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Executive Summary
IMT-GT Implementation Blueprint 2017-2021 (IB2017-2021) has entered the first half
period of its implementation. Several achievements have been achieved between this
period. There are 44 strategies under IB2017-2021 with 19 strategies have been
completed. The remaining strategies are on-going and with the same rate of
implementation, IMT-GT is positive to complete the implementation of all strategies
indicated in IB2017-2021.
The review of IB2017-2021 was conducted in January 2020 with most of the data
collected during the 13th IMT-GT Strategic Planning Meeting (SPM) in Bangkok,
Thailand, February 2020. Several new projects for the remaining of 2020 and 2021 also
incorporated in this review as part of the planning in the upcoming years. However,
the impact of Covid-19 to the subregion is not widely discussed in the review as the
data collection was conducted before the restriction order of the member countries.
The review is divided into four parts namely: (i) Introduction – that covers the
background of IB2017-2021, rationale, objective and process of review IB2017-2021,
and constraints and limitation; (ii) Review of sector strategies and project
implementation – that covers seven (7) focus areas under IB2017-2021; (iii) Analysis of
completion VS vision goals and target of IMT-GT; and (iv) Summary and conclusion.
The review of each sector strategies will include the implementation of IB2017-2021
and its progress, new project proposals, issues, challenges, and recommendations.
In the first half of IB, there are 73 projects implemented in IMT-GT with 26 projects
completed. The number of the completed projects is small as most of the projects are
long-term that require longer period to complete. However, most of the projects are
targeted to be completed by 2021. With the outbreak of Covid-19, several projects
such as infrastructure and training programmes might experience some delay and even
be postponed to 2021. This could affect the overall completion of the projects and in
achieving the goals for each sector strategies.
Based on the stock taking and consultation with the Working Groups (WG), it was
found that monitoring the progress of the strategies is challenging due to insufficient
data for IMT-GT. For instance, most of the data found are for country basis instead of
data for IMT-GT area. There are also limited collaboration between cross sectors
although the convergence initiative has been started since the implementation of
IB2017-2021. Other than that, it was found that there are limited studies related to
development in IMT-GT and the WGs may have difficulties to identify the right
programmes to be implemented in IMT-GT. Besides that, it was also highlighted on
Review Implementation Blueprint 2017-2021
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low involvement of private sector in WGs activities while JBC initiatives do not cover
cross-sectoral cooperation.
To address this problem, IMT-GT should develop suitable mechanism to ensure
smooth operation of the convergence initiative including the development of the
convergence programme. It is also equally important to strengthen coordination
between WGs, Chief Ministers and Governors Forum (CMGF), Centre for IMT-GT
Subregional Cooperation (CIMT) and National Secretariats (NS). The cooperation
should take advantage on its current approach, the bottom-up approach for inclusive
development.
IMT-GT apply bottom-up approach and therefore the involvement of the
state/province and private sector are very crucial to ensure this cooperation not only
driven by the government sector. This also includes developing the effective
mechanism of JBC to align their projects with WG vision and objectives. By aligning the
projects, JBC could be an effective stakeholder to support the development in IMT-GT.
Vice-versa, JBC should take lead in coordinating and incorporating inputs from national
business councils to provide insightful recommendation of private sector on the
implementation of IB2017-2021.
In conclusion, in the first 2 years of the implementation of IB2017-2021, IMT-GT has
achieved several accomplishments. At the first stage of action to achieve the long-
term vision, the WGs have demonstrated their effort in aligning their projects with the
strategies stipulated in IB2017-2021. The WGs also have taken the first step in
conducting convergence initiatives to solve cross-sectoral issues. Therefore, the result
of this review will provide them an opportunity to identify the obstacle and improve
WG action plan in accomplishing WGs objectives. Equally important,
IMT-GT should strengthen collaboration in monitoring and evaluation of WGs
programmes and projects. This will enable IMT-GT to realise deliverables of IB2017-
2021 and a groundwork for the next Blueprint.
Review Implementation Blueprint 2017-2021
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Part I. Introduction
A. Background of the IMT-GT Implementation Blueprint 2017-2021
The IB2017-2021 is the first phase of five years strategies in achieving the subregional
cooperation long term vision in 2036. This five-year strategy has been adopted by the Leaders
at the 10th IMT-GT Leaders’ Summit in Philippines, April 2017. IB2017-2021 emphasizes on the
importance of identification and implementations of projects that are scalable, replicable, and
sustainable to propel IMT-GT to deeper level of economic integration. Therefore, the full
accomplishment of IB2017-2021 is important to foresee the chance of IMT-GT to achieve its
target.
The subregional cooperation is unique by adopting a bottom-up approach. It is expected that
projects and programmes under IMT-GT will bring significant benefit in economic and social
aspects to the subregion. IMT-GT instituting project-level and location-specific regulatory
reforms instead of establishing policy to develop the subregion. The subregion is using the
existing policies implementing in the member countries and develop suitable projects to
support the policies. However, the identification of the projects should be made through
proper consultation with all stakeholders to maximise the benefit for the locals.
B. Rationale, Objective and Process of Review IB 2017 – 2021
Rationale
The 12th IMT-GT Summit in Bangkok, Thailand June 2019 agreed on the need to
effectively support member countries, seize new development opportunities, and
respond to emerging challenges. The IMT-GT Vision 2036 continues to guide in the
long-term. In the medium-term, the IB2017-2021 needs to be reviewed to ensure IMT-
GT on the right track in achieving its Vision 2036. Therefore, the leader tasked
Ministers to conduct the review of IB2017-2021 and organise Focus Group Discussion
with the relevant ministries and agencies.
The preparation of Review IB2017-2021 was initially prepared in collaboration with
external consultant. Based on the decision made in the 17th CIMT Advisory Committee
Meeting, January 2020, the meeting has instructed CIMT as the central secretariat to
conduct in-house review of the IB2017-2021. Responding to the directives, CIMT
provided the preliminary result of IB2017-2021 review and presented it in the 13th
IMT-GT SPM in Bangkok, Thailand March 2020.
The Review IB2017-2021 will provide the platform to measure recent developments
and their implications on the Programme’s strategic thrusts as well as the issues and
Review Implementation Blueprint 2017-2021
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challenges that need to be addressed to accelerate programmes/projects
implementation.
The Review IB 2017-2021 Objectives
The objectives of the Review IB2017-2021 are as follows:
I. Take stock of the accomplishments and progress made in the implementation of
IB2017-2021 and assess the impact on the overall objectives of IMT-GT;
II. Identify implementation issues and constraints from NS, CMGF, WGs, IMT-GT Joint
Business Council (JBC), IMT-GT University Network (UNINET), and CIMT;
III. Review the strategic thrusts of the IB2017-2021 in the context of recent regional
and global developments and recommend adjustments to achieve Vision 2036;
IV. Review and recommend programme/project priorities for the second half of the
five-year period 2017-2021;
V. Initiate the process of developing and implementing a results-based monitoring
and evaluation framework, which will include lessons learned, as a means to
enhance future implementation; and
VI. Identify the areas where IMT-GT programmes and projects can contribute to the
goal of the ASEAN Economic Community (AEC) and seek the appropriate
mechanisms to link IMT- GT activities with the broader ASEAN framework.
The Review IB 2017-2021 Process
The Review of IB2017-2021 involves a highly participatory process among various IMT-
GT stakeholders. There are several stages involved in the process, namely: (i) stock-
taking of progress made in the program and project implementation; (ii) country
consultations; (iii) validation, synthesis, and drafting of the Review IB2017-2021
document; and (iv) consideration final review by the IMT-GT Senior Officials Meeting
and endorsement in the IMT-GT Ministerial Meetings.
I. Stock-taking of programmes and projects
For the stock-taking exercise, CIMT collected information on the status of projects
listed under IB2017-2021. The stock-taking activity took place during the 13th IMT-
GT SPM and presented to the Senior Officials (SO). The output of this exercise is a
comprehensive compilation of all IMT-GT projects since the beginning
implementation of IB2017-2021 to February 2020.
II. WG consultations project assessment on IMT-GT strategies, programme thrusts
and implementation issues and approaches
CIMT initiated the consultation with WGs to obtain national perspectives on the
strategic thrusts of the IB 2017-2021, priority areas, as well as the facilitators and
Review Implementation Blueprint 2017-2021
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impediments to implementation. The country consultations included discussion on
IMT-GT accomplishments, lessons learned and challenges encountered during the
first two years of implementation, recent developments, broad strategies and
sector focus in the remaining two years, as well as on measures and mechanisms to
enhance and accelerate the Implementation Blueprint.
III. Synthesis, validation and the drafting of the Review IB2017-2021
CIMT compiled the input from the WGs and (i) check for consistency with the
directives of the review dialogue process, in particular, the strategic thrusts; and (ii)
conduct further discussions with NS. In this critical phase, CIMT will seek closely the
guidance of the Steering Committee to build consensus on the draft. CIMT
circulated the draft to be reviewed by NS before sending to SOs for their
consideration.
IV. Consideration and endorsement of the Review Document
The review document will be presented for final review to the SOs and
endorsements from IMT-GT Signing Ministers prior to the 26th IMT-GT Ministerial
Meeting and 27th IMT-GT Senior Officials Meeting.
C. Timeline
The Review of IB2017-2021 report the progress of implementation IB2017-2021 since
2017 until 13th IMT-GT SPM in February 2020.
Stages Jan 2020
Feb 2020
Mar 2020
April 2020
May 2020
June 2020
Jul 2020
Aug 2020
Sep 2020
Preparation on Review Design and Framework
Stock-taking
Working Group Consultation
Drafting of the Review IB2017-2021
Preliminary Result of Review
First Draft Circulated to National Secretariat
Finalization of the Review Report
Consideration & endorsement by SOM (inter-sessionally)
13th IMT-GT SPM
Review Implementation Blueprint 2017-2021
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Table 1: The timeline of the Review IB2017-2021
D. Constraints and Limitations
The process of Review IB2017-2021 by CIMT officially started after the direction of
17th CIMT Advisory Committee Meeting in Putrajaya January 2020. This review is
conducted using the internal resources of CIMT in-coordination with WGs and NS.
The review methodology also adjusted according to the availability of resources
and time limitation.
I. The review recognized the relative short period to complete it. This has
constrained the review to conduct in-depth analysis especially on each sectoral
cooperation to get more detail assessment of the progress of implementation.
II. Certain important data and reference documents are unavailable and incomplete.
The non-uniformity of the data due to different method in each member country
has made it difficult to evaluate the performance.
III. There is no clear baseline in some indicators of the IB2017-2021. It has caused
difficulty to review the WGs achievement due to the absence of the baselines.
Review Implementation Blueprint 2017-2021
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Part II. Economic Corridor Programmes and Projects:
Maximising economic network externalities
Since 2007, IMT-GT has adopted economic corridor strategy to materialise
geographically comparative and complementary advantages of the subregional
economic activities. The spatial development in these corridors on transport and
connectivity is aimed to achieve goal in establishing IMT-GT as attractive destination
for trade and investment. The enabling facilities are developed and improved in order
to streamline production and trade movement within the area. In the review of
IB2017-2021, the common challenges between these corridors are the deliberation of
policy to enhance connectivity and promote industrial clusters and cross-border
production network.
Review Implementation Blueprint 2017-2021
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IMT-GT Corridor Key Characteristics
Extended Songkhla-Penang-Medan Corridor (EC1)
EC1 hosts some of the most agriculture-rich provinces in Southern Thailand that trade with Malaysia, Sumatera and Singapore and plays an important role in the supply chain of traded goods outside the subregion. EC1 covers several provinces in the border areas of these two countries and will serve as the anchor for clustering major economic activities through the development of industrial hubs and special economic zones.
Straits of Melaka Corridor (Trang-Satun-Perlis-Penang-Port Klang-Melaka) (EC2)
Due to the proximity of this corridor to Sumatera, there is considerable potential to complement the various stages of the production chain with this province, especially if a series of economic and industrial zones are established at strategic points along the corridor. This corridor has the potential to serve as food hub, especially for halal, since a number of food terminals and integrated food centres are being planned within the corridor.
Banda Aceh-Medan-Pekanbaru-Palembang Economic Corridor (EC3)
This corridor, which is part of ASEAN Highway Network, is of critical importance for developing Sumatera, as well as an important building block for further enhancing connectivity within the IMT-GT subregion. Its development is closely linked with that of the other three corridors.
Melaka-Dumai Economic Corridor (EC4)
This maritime corridor has a long tradition of freight and passenger traffic between Sumatera and Malaysia. Dumai is the gateway port of Riau Province, one of the richest provinces of Indonesia with abundant palm oil plantations and on-shore oil and gas resources. Dumai is principally a plam oil-related export port with general cargo, fertiliser, cement and rice being the main import traffic.
Ranong-Phuket-Aceh Corridor (EC5)
The Ranong Phuket-Aceh Corridor is envisaged to enhance the connectivity between Sumatera and Southern Thailand primarily through the development of facilities in key ports in Sumatera.
Table 2: IMT-GT Economic Corridor Source: IMT-GT
Vision 2036
The proposal to include a new economic corridor, Economic Corridor 6 (EC6) was presented in
24th IMT-GT Ministerial Meeting. EC6 covers Pattani, Yala and Narathiwat in Thailand, Perak
and Kelantan in Malaysia, and Riau Islands and Bangka Belitung in Indonesia. The rationale to
establish the new corridor is to link several states/provinces to economic corridor which
previously does are not included in the IMT-GT Economic Corridor. This is also in-line with the
development to the changing scenario in the Asian region by the introduction of China’s Belt
and Road Initiative (BRI). Under this corridor, the completion of East Coast Rail Link (ECRL) will
connect with the Triangle of Security-Prosperity-Sustainability of Thailand. The new corridor
not only will expand transport and logistics networks but also will bring balance of
development to eastern area of IMT-GT subregion.
Review Implementation Blueprint 2017-2021
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In total, USD47 billion worth of Physical Connectivity Projects (PCPs) such as road, bridge,
airport, port as well as Customs, Immigrations and Quarantines facilities will be constructed
along the Economic Corridors for the period of 2017-2021. The enhancement of physical
connectivity in these corridors along with the improvement in the policy and regulatory
framework will contribute to the development of industrial clusters and production nodes in
the subregion. The development in the economic corridors will maximise the economic
externalities that underscore the importance of applying spatial approach for proper planning
and improved management of natural resources.
The development in the Economic Corridors should also in-line with the improvement of
software connectivity. The improvement in software connectivity could address the issues
related to freer movement of goods and services as well as people mobility. This will
debottleneck the administrative, technical and regulatory barriers that hinder the
implementation of the joint projects.
By having sufficient infrastructure along the corridor is not enough to ensure the vibrant
economy activities. It is important to encourage and promote active participation of local
Micro, Small & Medium-Sized Enterprises (MSMEs) in the corridor that can participate as both
regional and global value chains. The development of Special Economic Zones along the
economic corridors not only be able to create job opportunities for the local but also
encourage technology transfer from the larger firms that could enhance MSMEs
competitiveness.
Review Implementation Blueprint 2017-2021
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Part III. Review of Sector Strategies and Project Implementation
This section will discuss and provide information on the focus area strategies as well as the
progress implementation of IB2017-2021 according to the seven (7) sectoral cooperation.
Besides that, the section also provides challenges and issues arise faced by WGs, JBC and CIMT
on the implementation of each strategy. The section also detailed out the recommendations
that could be taken by IMT-GT to achieve the sectoral goals.
* PIT: Project Implementation Team
A. 7 Focus Areas under IB 2017 – 2021
Agriculture and Agro-Based Industry
Focus Area Strategy and Indicators
Agriculture and agro-based Industry is one of the lead focus area in IMT-GT with its
importance in providing jobs and income for significant number of households in this
subregion. This sector is the main contributor to the GDP of Indonesia-GT and
Thailand-GT accounting for 22.6 percent and 24 percent of their GDP in 2014,
respectively. Although the sector contributed less than 7 percent to the Malaysia-GT
GDP in the same year, this sector has been well-established in Malaysia and engaged in
a wide range of downstream activities.
For the period of five (5) years, 2017-2021, this focus area aims to achieve sustainable
production and to become an industry that is responsive to market demand specifically
in the following four (4) objectives:
1. Production of value-added agriculture produce through technology transfer
cooperatively across the IMT-GT provinces and states supported by industry,
academia, government and civil society;
2. Agriculture sector undertakes eco-friendly and sustainable practices;
3. Agriculture production is responsive to market demand; and
Review Implementation Blueprint 2017-2021
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4. Freer flow of agriculture products regionally and globally supported by
harmonisation of ASEAN trade regulations.
WG on Agriculture and Agro-Based Industry (WGAA) is responsible for overseeing the
implementation of this focus area. The scope of this focus area covers agriculture, fisheries and
livestock including upstream, midstream and downstream activities of the industry. To realise
the goal and objectives, the WGAA will implement 11 key strategies accompanying with 19
actions covering short-term and medium-term.
The eleven key strategies are as follows:
1. Create an innovative mechanism of collaboration between government, private
sector, academia and civil society for technology transfer through capacity
building and knowledge sharing.
2. Promote a conducive financial environment for the development and
innovation of value-added products regionally.
3. Promote high value and knowledge intensive agricultural products, including
products that place nutritional safety as a central component.
4. Design and implement cooperatively an educational programme to raise
awareness on eco-friendly and sustainable agriculture practices.
5. Encourage the practice of eco-friendly and sustainable agriculture following
national standards.
6. Promote environmentally sustainable cross-border agriculture value chains.
7. Support the private sector in promoting agriculture products that meet the
market demand.
8. Encourage sharing of market information on agriculture products and
agricultural product prices within IMT-GT, including through the creation of
mechanisms for sharing of updated information.
9. Recommend agriculture trade regulatory framework for movement of
agriculture product throughout IMT-GT to comply with ASEAN trade regulatory
framework.
10. Improve the agro-logistics system across borders.
11. Implement pilot projects to spur cross-border agriculture value chain creations
for subsequent upscaling with MSMEs participation.
In the period of IB2017-2021, WGAA will collaborate closely with other WGs such as Trade and
Investment Facilitation as well as Transport and ICT Connectivity to promote cross-border
value chains and to improve agriculture product logistics. Additionally, it is important within
the span of this five (5) year to emphasize the bigger role of Sub-WG on ICT Connectivity
(SWGICT) in promoting the adoption of e-commerce especially by MSMEs as effective platform
for market information.
Review Implementation Blueprint 2017-2021
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Project Implementation Status
Table 1 provides the WGAA project listing under IB2017-2021 and project status. Under
IB2017-2021, WGAA has completed two (2) projects and five (5) projects are currently on-
going mostly to be completed by 2021. The two (2) completed projects namely: IMT-GT Palm
Oil Cooperation, and Development of Local Grain Corn Productivity System for Livestock
Utilising Varieties from Indonesia and Thailand are both serving Objective 1: Production of
value-added agriculture produce through technology transfer cooperatively across the IMT-GT
provinces and states supported by industry, academia, government and civil society; and
Objective 2: Agriculture sector undertakes eco-friendly and sustainable practices.
Under the on-going projects, two (2) projects are brought forward from the previous
Implementation Blueprint, IB2011-2016 as it requires longer time to complete the projects.
Since the implementation of IB2017-2021, WGAA has taken initiative to develop regional
project. In 2018, WGAA proposed Regional Training for Agriculture Young Farmers in the
Framework of IMT-GT, a collaborative project developed by the three countries, Indonesia,
Malaysia and Thailand to conduct a training on rotation basis for young farmers. The first
training was conducted successfully by Thailand in August 2019, focussing on the production of
mangosteen in three different provinces of Thailand namely; Trang, Nakhon Si Thammarat and
Chumphon. The second and third round of training will be hosted by Indonesia and Malaysia,
respectively.
NO PROJECT NAME PROJECT PROPONENT TIMELINE / DATE
DESCRIPTION
1 IMT-GT Palm Oil
Cooperation
Land Use Planning & Policy, Land
Development Dept., Ministry of
Agriculture and Cooperatives
(MOAC Thailand)
Status: Completed
October 2016 –
September 2018
2 Development of Local
Grain Corn Productivity
System for Livestock
Utilising Varieties from
Indonesia and Thailand
Malaysian Agriculture Research &
Development Institute, Ministry of
Agriculture & Food Industries
(MAFI) Malaysia
Status: Completed
September 2017 –
February 2020
3 Development of
SurathRed Goat Breed
Bureau of Biotechnology in
Livestock Production, Dept of
Livestock Development, MOAC
Thailand
Status: On-going (carry
forward from IB2011-
2016)
2011 – December 2021
4 Development of Agro-
Eco Friendly
Phatthalung Agricultural Research
& Development Center, Dept of
Status: On-going (carry
forward from IB2011-
Review Implementation Blueprint 2017-2021
16
Agriculture through
Adoption of
Appropriate
Technologies
Agriculture, MOAC Thailand 2016)
October 2012 –
September 2021
5 Genetic Diversity of
SurathRed Goat
Bureau of Biotechnology in
Livestock Production, Dept of
Livestock Development, MOAC
Thailand
Status: On-going
2016 – December 2022
6 Increasing Asian
Seabass Productivity by
Promoting the
Utilisation of Genetic
Improvement Seed-A-
Field Trial
Coastal Aquaculture Research &
Development Center Regional 6
(Songkhla), Thailand
Status: On-Going
October 2016 –
December 2021
7 Regional Training for
Agriculture Young
Farmers in the
Framework of IMT-GT
Ministry of Agriculture (MOA)
Indonesia, MAFI Malaysia, MOAC
Thailand
Status: On-going
August 2018 –
December 2021
Table 3: Working Group on Agriculture and Agro-based Industry Projects
New Proposals
After a successful implementation of the first round of Regional Training for Agriculture Young
Farmers, WGAA proposed to adopt the same mechanism to develop several new projects
incorporating agriculture with technology such as smart farming. The Superfruit project is a
model farming that showcases collaboration between Ministry of Agriculture and Food
Industry Malaysia, UNINET, local government and private sector. The WG plans to apply its
best practice in new proposed herb project. WGAA also address current issue such as plant
disease and pest which can be a threat to economic crop plantation and productivity.
Additionally, WGAA is planning to conduct project for the rural community to enhance
agricultural product in penetrating international market.
The implementation of these projects will encourage convergence initiatives with other
sectors in the area of capacity building, knowledge sharing, research and development, and
promote active participation of private sector in IMT-GT.
Issue and challenges
WGAA proposed to drop Objective 4: Freer flow of agriculture products regionally and globally
supported by harmonisation of trade regulation at the IB2017-2021 consultation meeting.
Although the WG is in vision to give recommendation related to agriculture trade regulatory
framework, the WGAA does not have capacity to harmonise trade regulation. WGAA proposed
Review Implementation Blueprint 2017-2021
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to facilitate trade within IMT-GT and global by providing data on agriculture, fisheries and
livestock available for each province and state in IMT-GT for better evaluation on market
supply and demand.
Recommendations
In the first half of the implementation of IB2017-2021, WGAA has started to develop regional
project that promote a closer collaboration between the IMT-GT Member Countries that will
enhance complementary activities, promote economies of scale and strengthen international
competitiveness. However, the number of participants or in general the recipients of the
project is small, and it should be enlarged to give inclusive benefit for the community. The
sector’s programme on young farmer training is the showcase of action in preparation for
ageing society and active effort to retain young workforce in the local community.
Projects under Agriculture are encouraged to be market-oriented and to have business
engagement. Considering strength of IMT-GT subregion, the area is resourceful with rubber, oil
palm, and fishery to accommodate demand from agro industry. Projects in related to this
prospect have been yet initiated at regional collaboration
In addition to the mainstream crops and natural resources to serve market demand, the WG
can enhance greater opportunity for the flagship crops in coordination with local community.
The new initiative on herbs and fruits are in line to promote IMT-GT in the leading position of
food and ingredient supply chain.
The WG can also adopt the scope of sustainable sourcing in response to the global market
trend and consumer awareness. Sustainable sourcing is integration of social, ethical, and
environmental performance factors into the process of selecting suppliers. The current global
trend on the increasing number of suppliers embracing sustainability as their operating
philosophy and growing number of customers take sustainability into their consuming and
buying accountability. Sustainable sourcing gives added value to the products and at the same
time protects the environment. IMT-GT may consider exploring and take this opportunity to
promote IMT-GT well recognised as sustainable supply chain.
Focus Area: Tourism
Focus Area Strategy and Indicators
Tourism is one of the strengths of IMT-GT in view of the subregion is blessed with
richness of diverse geographic nature and cultural heritage to attract tourists. The
cooperation on tourism therefore prioritises target to increase numbers of tourist
arrivals in the IMT-GT area to reach total 109 million international visitors in 2036.
Review Implementation Blueprint 2017-2021
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The WG on Tourism (WGT) has its own particular “IMT-GT Tourism Strategic
Framework 2017 - 2036 and Action Plan 2017 – 2021”. The document was created
based on the overall strategic framework set forth in the Leaders' Declaration on the
IMT-GT Vision 2036, the IB2017-2021 and ASEAN Tourism Strategic Plans 2016-2025,
including results of survey and consultation with public, private, and community
stakeholders in the subregion.
According to the Framework, WGT follows four (4) strategic directions, which
translated into various programmes/projects to realise the implementation. In
accordance with strategic directions, WGT divides each member country to lead each
directive area in; (i) improving tourism air and sea transport and ICT connectivity in the
IMT-GT, under Indonesia coordination; (ii) raising the competitiveness sustainability
and inclusiveness of IMT-GT Tourism, under Thailand coordination; (iii) formulation of
the IMT-GT tourism marketing strategy and action plan, and; (iv) developing
sustainable, inclusive and competitive thematic cross-border circuits/routes under
Malaysia coordination. Following of the division, each of the country are expected to
bring better initiatives for greater coordination.
Project Implementation Status
To achieve the IMT-GT Vision 2036 goal for tourism, “sustainable, inclusive and
competitive cross-border tourism”, a set of action plan in line with IB2017-2021 must
be prioritized. Up to 2019, from 18 programmes/projects/ registered under IB2017-
2021, Tourism Sector has completed eight (8) projects, with six (6) ongoing
programmes/projects and four (4) new proposals.
NO PROJECT/PROGRAMME PROJECT
PROPONENT
TIMELINE / DATE
DESCRIPTION
1 Heritage Race Campaign: IMT-GT the
liveable old towns-an integrated
marketing communication program
Ministry of Tourism
and Sports Thailand
Status: Completed in
2018
2 Position paper to measure the
impact of development of tourism
industry in the IMT-GT
Ministry of Tourism
and Sports Thailand
Status: Completed in
2018
3 Workshop on Maritime and Coastal
Sustainable Tourism in IMT-GT;
Managing Over tourism
Ministry of Tourism
and Sports Thailand
Status: Completed on
21-24 April 2019
4 IMT-GT Cruise Business Forum Sabang Authority
Port, Indonesia
Status: Completed on
17-18 Oct 2019
5 IMT-GT Peranakan Nature Trail:
International Peranakan Festival
Indonesia, Malaysia
and Thailand
Status: Completed in
Oct 2019
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19
Ministry of Tourism
6 IMT-GT Fly and Rail tourism Keretapi Tanah
Melayu and Ministry
of Tourism, Arts and
Culture Malaysia
Status: Completed on
17 Nov 2019
7 Marketing strategy and action plans
for IMT-GT for 2018-2020 Marketing
strategy and action plans for IMT-GT
for 2018-2020
Ministry of Tourism,
Arts and Culture
Malaysia
Status: Completed in
2019
8 Peranakan a colourful culture: The
Booklet of ASEAN Heritage Trails
Ministry of Tourism
and Sports Thailand
Status: Completed in
2019
9 IMT-GT Geopark Trails Ministry of Tourism,
Arts and Culture
Malaysia
Status: On-going
2020-2021
10 IMT-GT Calendar of Events Ministry of Tourism
and Culture,
Malaysia
Status: On-going
2020-2021
11 2nd IMT-GT Tourism Forum Ministry of Tourism
and Sport, Thailand
Status: On-going
2020-2021
12 IMT-GT Tourism Packages Indonesia, Malaysia
and Thailand
Ministry of Tourism
Status: On-going
2020-2021
13 Tourism Student Exchange
Programme on Community Based
Tourism
Riau Province,
Indonesia
Status: On-going
2020-2021
14 IMT-GT Cheng Ho Adventure Trail
Seminar 2020
Ministry of Tourism
Indonesia
Status: On-going
2020-2021
Table 4: Working Group on Tourism Projects
In addition to the annual WG meeting, WGT conducted the Tourism Forum as an annual
platform for tourism stakeholders to exchange view on tourism issues and mutually create or
collaborate on projects/programmes that could benefit three member countries. In the 1st
IMT-GT Tourism Forum held in Langkawi, Kedah, October 2018, the IMT-GT Tourism Packages
were completed and launched. The forum and meeting were attended by 183 participants
from Indonesia, Malaysia and Thailand. Based on the report of the 12th IMT-GT WGT Meeting
in August 2019, it has recorded total 697 travel packages sold with estimated value of MYR
669,416 since the launching of the joint tourism package.
The programmes of WGT are consolidated with the strength of IMT-GT and strategic
directives. Based on the review, the programmes persistently revolve around cross-border
tourism, eco-tourism, marine tourism, heritage tourism and joint packages tourism. It is found
that some programmes are considered activity-based and one-time event while some
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20
programme are in continual model as the organizing of annual Tourism Forum and the IMT-GT
Tourism Packages.
Proposed New Projects
Under concept of thematic tourism, WG Tourism accommodate the upcoming tourism
trend and niche market. The initiative on Muslim Friendly Tourism (MFT) is welcomed
as a new proposed programme and will be incorporated with WG of Halal Products
and Services (WGHAPAS) to develop comprehensive concept.
Issues and Challenges
Based on the consultation with WGT, the major challenge is raised in related to the
issue of having two different framework guidelines: IB2017-2021 and IMT-GT Tourism
Strategic Framework 2017-2036 and Action Plan 2017-2021. WGT is challenged to
achieve the targets as stipulated in two guidelines. As the result, the WGT are focusing
more into the general target of Vision 2036, to achieve 109 million international
visitors in 2036 instead of following the action plans and specific target indicated in the
Strategic Tourism Framework.
There are 12 action plan elements stated in the IMT-GT Tourism Strategic Framework
2017-2036 and Action Plan 2017-2021. Out of those 12 action plan, there are 4 (four)
action plan that has yet to be followed-up as it is beyond the capacity of WGT to lead
the implementation. For instance, Sabang Airport/Seaport & Melaka Ro-Ro Port
Developments, the implementation of air charter and air route development and
destination ICT. As a result, the WGT may not be able to achieve their target indicated
in IB2017-2021.
No. 12 Action Plans under IMT-GT Tourism Strategic Framework 2017-2036 and Action
Plan 2017-2021
1 Sabang Airport/Seaport & Melaka Ro-Ro Port Developments
2 Facilitating air charter approval requirements
3 Facilitating airline route development
4 Facilitating destination ICT
5 Implementing ASEAN Tourism Standards and developing and implementing new Halal
Destinations Standards
6 Tourism human resource destination capacity building
7 Developing a data base on tourism and its impact on supply
8 Undertaking marketing research to inform the formulation of the marketing strategy
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and selection of thematic circuits and products
9 Preparation and implementation of a marketing strategy and two- year action plan
10 Initial 2017-2018 packaging and promotion program
11 Selecting, designing and implementing thematic cross-border marine, heritage and
ecotourism adventure products
12 Cross-border circuit/rout packaging and promotion 2019-2021
Table 5: 12 Action Plans under IMT-GT Tourism Strategic Framework 2017-2036 and Action Plan 2017-2021
Recommendations
WGT can explore the benefit of projects developed by WG on Transport and ICT Connectivity
(WGTIC). The MOU on Expansion of Air Linkages is successfully endorsed by Ministerial level
and is not fully utilized by IMT-GT. WGT is encouraged to maximize the benefit of this MOU
for tourism promotion through convergence with WGTIC.
The improvement in measuring IMT-GT Tourism performance is needed to assist WGT
in aligning its projects and programmes with the strategies. Several indicators such as
average length of stay, international tourist expenditure per capita per day and
incremental jobs created in the accommodations data need cross-references data from
related agencies, for examples statistics agency, customs and immigrations, and hotel
associations.
More convergence meetings are required as a platform of discussion on collaboration on the
implementation of projects/programmes. In WGT case, the convergence meeting with
WGHAPAS and WGTIC have been initiated to implement MFT and Port Community Dialogues.
Other possible convergence meetings could be explored, such as with WG on Human Resource
Development, Education and Culture (WGHRDEC) to organise capacity building programme for
tourism industry personnel and collaborate with Sub-Working Group on IMT-GT Trade,
Investment and Tourism Database (ITITD) to consolidate the tourism statistical data.
The engagement of private sectors in Tourism programme is highly encouraged to expedite the
deliverables of project implement. Private sector, community and local government should
work together for instance in cruise tourism. It is crucial to be accorded by in-line business
operators with the assistance from the local government.
As a way forward, the tourism sector should develop a diverse plan as the industry relates to
tourist behaviour, market trend, and new technology. The integration of changing situation
can challenge or disrupt IMT-GT tourism programme as a valid and efficient plan for current
tourism industry. During the review, IMT-GT is facing with economic recession even before
the impactful COVID-19 pandemic. IMT-GT tourism is inevitable to create new strategy in
response with “New Normal” travel and tourism innovation.
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Focus Area: Halal Product and Services
Focus Area Strategy and Indicators
IMT-GT member states consists of at least total 83 million population and the majority are
Muslims. Each of IMT-GT member states has its own strengths in Halal sectors, Indonesia the
country with largest Muslim population as the biggest potential halal market. Malaysia hold a
well-established halal brand and recognition in global market. Meanwhile, Thailand has
strength in halal science and technology development. The focus group target to utilise each
other strength for greater and stronger Halal industries in subregion.
Figuring out the potential of Halal in IMT-GT cooperation, Halal Products and Services (HAPAS)
focus area sets its goal to enhance trade and investment in Halal Products and Services by
2021. To realise the goal, the Focus Area has five (5) objectives to be achieved as follows:
1. Acceptance of Halal Standards amongst the IMT-GT Member Countries;
2. A larger pool of technical experts and professionals in Halal related industries;
3. Halal SMEs are export oriented;
4. More Halal manufacturers and service providers; and
5. Consumers have better access to Halal products and services.
Each of the objective of Halal Products and Services Focus Area is measured by specific
indicators. WGHAPAS shows a commendable output by achieving target of Objective 2 by
increase Halal technical experts and professionals more than 30,000 persons in 2019, earlier
than a target set for 2021, and Objective 3 on the number of Halal Export Oriented SMEs
increases by 3,000 in 2019, earlier than a target set for 2021. According to the update from
13th IMT-GT SPM in Bangkok, WGHAPAS has surpassed the total target of Halal technical
experts and professionals and halal export-oriented SMEs by 54,188 and 4,215, respectively.
Project Implementation Status
From a total of 15 projects/programmes listed under IB 2017-2021, five (5) projects have been
completed and 10 projects listed under ongoing.
NO PROJECT/PROGRAMME PROJECT PROPONENT TIMELINE / DATE DESCRIPTION
1 IQRAH (H-Number) Halal Science Centre (HSC) Status: Completed in February 2018
2 SPHERE (Standardised Protocol for Halal Electronic Resource Exchange)
HSC Status: Completed in 2018
3 Halal Start-Up 4.0 HSC Status: Completed in February 2018
4 Integrated Halal Superhighway IMT-GT Host System
HSC Status: Completed in February 2018
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5 Gap Analysis Task Force Standard Malaysia, Department of Islamic Development Malaysia (JAKIM), The Central Islamic Council of Thailand (CICOT) and Halal Product Assurance Organizing Agency (BPJPH)
Status: Completed in 2019
6 Develop Halal Curriculum through EDU-Halal project
Halal Development Corporation Berhad Malaysia (HDC), HSC, Price of Songkhla University Thailand (PSU)
Status: On-going 2020-2021
7 Exchange of Halal expertise through HKE
HDC, HSC, PSU, BPJPH Status: On-going 2020-2021
8 Enhance collaboration between Halal SMEs and LLC/ MNC
HDC, JAKIM, HSC, PSU Status: On-going 2017-2021
9 Promote Halal related trade promotional events through IMT-GT Pavilion
Malaysia External Trade Development Corporation (MATRADE), HSC, Indonesian Ulema Council (MUI)
Status: On-going 2017-2021
10 Improve efficiency of Halal Certification process through Website based for Halal Certification Registration
JAKIM, MUI, CICOT Status: On-going 2017-2021
11 Develop online platform to integrate and disseminate information under Halal e-commerce project
HSC, HDC, BPJPH Status: On-going 2017-2021
12 Halal Route HSC, HDC, BPJPH Status: On-going 2017-2021
13 Strategic Halal Industry Collaboration Task Force
HSC, HDC, BPJPH Status: On-going 2019-2021
14 Halal Blockchain HSC Status: On-going 2019-2021
15 Hal Plus HSC Status: On-going 2019-2021
Table 6: Working Group on Halal Products and Services Projects
Upon assessment result from the IMT-GT member countries, WGHAPAS had established Gap
Analysis Task Force in 2018 to achieve goal in mutual recognition and acceptance of halal
certification and halal logo. The task force had met annually and completed the Gap Analysis
study in 2019. The result was agreed by WHAPAS in principle to recognize Halal Standard of
each member country.
The acceptance of each other’s Halal Standard is a trigger to realistic collaboration on Halal
products and services within IMT-GT. The WG has made significant pace through the Gap
Analysis Taskforce by finalizing principle agreement in recognition of member country’s Halal
Standards. The taskforce is transformed into next level of cooperation as the Strategic Halal
Industry Collaboration Taskforce with core objective to develop further collaboration in halal
industry targeting on SMEs.
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Meanwhile, following the achievement of the indicators for WGHAPAS, the WG agreed to set
up the new target, at least 70% increase from the previous indicator. For Indicator 2 (refer to
table 7), the WG agreed to raise its target to 70,000 certified Halal technical experts and
professionals from the previous target, 30,000 persons by 2021. While for Indicator 3 (refer to
table 7) on Halal export-oriented SMEs, they agreed to set 7,000 SMEs from its previous target,
3,000 by 2021.
Proposed New Projects
Most of the programme/projects under WGHAPAS are country-based projects with room to
initiate more regional projects. In the 13th IMT-GT SPM, WGHAPAS agreed to organise regional
training programme in-collaboration with Islamic Development Bank. The training programmes
target to improve SME’s capacity for Halal markets and to prepare skilled Halal Auditors for
Halal industries.
Issues and Challenges
Indicator Indonesia Malaysia Thailand
Indicator 2. Halal technical experts and professionals increase to 30,000 persons by 2021
4820 certified halal personnel (as of Feb 2020)
36 143 certified halal personnel (as of Feb 2020)
15225 certified halal personnel (as of Feb 2020)
Indicator 3. The number of Halal export-oriented SMEs increases by 3,000 by 2021
1,000SMEs
1,401 SMEs
1,814SMEs
Indicator 4. Number of certified Halal manufacturers and service providers increase by at least 5% by each country by 2021.
1,000 certificates (Riau Islands, North Sumatra, South Sumatra)
854,103 products 8,120 Companies (2018)
24,845 products under 2,720 certificates (in 2019)
Indicator 5. Number of visitor utilization of digital application increase by 5% by each country by 2021.
188 visitors 2,423,634 visitors (HDC portal and social media in 2019)
125,900 visitors
Table 7: Working Group on Halal Products and Services Indicators according the IB2017-2021
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In the review, it is found that IMT-GT halal activities initially started as small project. The
cooperation on Halal sector in IMT-GT have been rapidly increased from year to year. The
growing number of issues discussed in IMT-GT has resulted in needs to include a wider
representation of related bodies and agencies in WGHAPAS activities as well as more
convergence with other related WGs to enrich the discussion and realise catalyse the
workplan.
The review also identifies that most of workplan under the WG tend to focus in quantitative
output. The project related to entrepreneur is not elaborated on the delivered impact for
instance as in workplan to increase Halal export-oriented SMEs. However, the existing
activities are considered groundwork to promote trade i.e. Halal certificate registration and
professional training programmes.
Recommendations
WGHAPAS shows a positive progress on its achievement based on indicators listed in IB2017-
2021. However, most of the projects/programmes are country-based and activity-based rather
than a projects/programmes. The activities should be aligned and listed under the main
heading of the project. Additionally, in achieving its focus to strengthen Halal industries in the
subregion, it is highly important to develop regional project rather than individual project.
Collaborative regional project will unleash the potential in the subregion and at the same time
HAPAS could be a niche area to generate economic values for IMT-GT. The work of WG on
Halal Gap Analysis has delivered positive result and path the way forward to realise on intra
subregional Halal trade. This progress will guide the Strategic Halal Industry Collaboration
Taskforce to enable Halal industry players to trade smoothly in the subregion.
The effort of the WG in preparing large pool of technical experts and professionals as well as
certified Halal manufacturers and service providers should be applauded as this could support
the development of Halal industry in the subregion. However, the WG should also emphasize
on the development of export-oriented Halal SMEs as it is one of the main objectives under
IB2017-2021. On the top as being certified as Halal products, the SMEs should comply to
international requirement to enable them to export their products. Besides getting certified
and product licensing, the WG could facilitate the Halal SMEs in providing suitable training
such as in packaging, international logistics, duty and tax.
In the current situation, the WG may also consider to upscale several individual country
projects driven with the adoption of technology to assist the SMEs to grow. Often time, the
SMEs is unwilling to invest on the technology as it is not top priority in doing business. By
adoption of technology the SMEs could expand their operation and increase efficiency that in
turn would be able to cater for larger market. In this case, the WG may consider to develop
hybrid training course consist of Halal Start-Up element into the SME training.
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Focus Area Trade and Investment
Focus Area Strategy and Indicator
IMT-GT cooperation in Trade and Investment Facilitation (WGTI) aims to make IMT-GT a trade
and investment friendly subregion by 2021. WGTI agreed to implement three priority
strategies, as follows: (1) Reduce technical, administrative and regulatory barriers to trade and
investment; (2) Improve logistics services along supply and value chains; and (3) Increase trade
and investment promotion activities. Consistent with the strategies, WGTI is expected to
increase intra and inter-IMT-GT trade and investment and enhance the subregion’s
attractiveness to domestics and foreign investors.
Project Implementation Status
WGTI has two Sub-WGs as a working taskforce under their guidance which include Sub-WG on
Customs, Immigration and Quarantine (CIQ) and ITITD.
The project implementation is classified into facilitation project and physical facilitation
project. WGTI has a commitment to finalise and implement the IMT-GT CIQ Framework of
Cooperation (FOC) of Cross Border Movement of Goods and People. The completion of FOC
will facilitate logistics and business services along the economic corridors and overcome
logistical constraints of intra-IMT-GT trade and investments which cover transport and cargo
handling. The proposed FOC is finalised during the 13th IMT-GT SPM and will be endorsed
during the 26th IMT-GT Ministerial Meeting.
WGTI agreed to revitalise project on Kedah Rubber City into IMT-GT Rubber Cities in
collaboration with Songkhla Rubber City in Thailand and Indonesia Rubber Corridor in Sei
Mangkei Special Economic Zone (SEZ) and Tanjung Api-Api.
In the 13the IMT-GT SPM in Bangkok, WGTI proposed to drop Kedah Science & Technology
Park in the list of projects because Northern Corridor Implementation Authority (NCIA) is no
longer the focal implementer to this project.
As part of improving logistic services and facilitate cross border trade in IMT-GT, Thailand and
Malaysia government agreed to piloted a project on 24 hours operation checkpoint for cargo
traffic at ICQS Bukit Kayu Hitam – CIQ Sadao starting from 18 June 2019 for a trial period of
one year. However, both governments have agreed to discontinue to 24-hour operations at
ICQS Bukit Kayu Hitam and CIQ Sadao following a low volume of heavy vehicles and cargo on
16th June 2020.
Under work of SWG-ITITD, WGTI is responsible for producing the annual publication of IMT-GT
Statistics. The information is the central reference for other sectors to monitor progress and
development of IMT-GT economy.
NO. PROJECTS PROJECT TIMELINE / DATE
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PROPONENT DESCRIPTION
Facilitation project
1. Trial Period of 24Hrs Operation of CIQ Sadao-ICQs Bukit Kayu Hitam
Thailand/Malaysia Customs
Status: Completed in June 2020
2. IMT-GT and BIMP-EAGA Joint Time Release Study on Cargo Clearance and Trade Document Requirement
Indonesia, Malaysia and Thailand Customs
Status: On-Going 2017-2021
3. Framework of Cooperation (FOC) of Cross Border Movement of Goods & People
SWGCIQ Status: On Going brought forward from IB2012-2016 to IB 2017-2021
4. IMT-GT Business Center’s/Trade Fairs: • Bukit Bunga- Jeli Plaza • Indonesia IMT-GT Plaza (Riau
Province) • Thailand IMT-GT Plaza (TBC)
Indonesia Ministry of Trade, Thailand Ministry of Commerce and East Coast Economic Region Development Council (ECERDC) Malaysia
Status: On-Going 2017-2021
5. IMT-GT Annual Trade Mission and Trade Fairs
CIMT/JBC Status: On-Going 2017-2021
6. Production IMT-GT Statistical Booklet SWGITITD Status: On-Going 2017-2021
7. API System SWGITITD Status: On-Going 2018-2021
Physical facilitation
8. CIQ Complex Development (New Sadao CIQ Complex and linking to Bukit Kayu Hitam)
Thai Customs Status: On Going brought forward from IB2012-2016 to IB 2017-2021
9. The 2nd Scoping Study for Special Economic Zones
Indonesia Investment Coordinating Board (BKPM)
Status: On-Going 2017-2021
10. IMT-GT Special Economic Zones -Thailand Special Economic Zones 1: Songkhla Special Economic Border. 2: Narathiwat Special Economic Border 3: Pattani Special Economic Border -Malaysia Special Economic Zones 1: Kelantan, 2. Kedah, 3. Perlis
Thailand Investment Board
Status: On-Going 2017-2021
11. Chuping Valley Industrial Area (CVIA) Northern Corridor Implementation Authority (NCIA) Malaysia
Status: On-Going 2017-2021
12. Tok Bali Fisheries Park (TBIFP) ECERDC Status: On-Going 2017-2021
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13. Tok Bali Industrial Park ECERDC Status: On-Going 2017-2021
14. Pasir Mas Halal Park ECERDC Status: On-Going 2017-2021
Table 8: Working Group on Trade and Investment Facilitation Projects
Issues and Challenges
WGTI need to develop strategies to overcome major issues and challenges such as high
business transaction costs in the subregion, lack of simplification and standardisation of cross-
border formalities and procedures, incentives to attract private sector to invest in IMT-GT, and
response on increasing competition in FDI across ASEAN. The implementation of the strategies
is expected to increase intra and inter-IMT-GT trade and investment and enhance subregion’s
attractiveness to domestics and foreign investors.
Based on the review, most of the projects conducted by WGTI are classified into physical
projects instead of their main role to facilitate the trade activities in the subregion. The
direction of WGTI is unclear although they have made some progress such as conducting IMT-
GT regional trade fair in collaboration with Brunei Darussalam-Indonesia-Malaysia-Philippines
East ASEAN Growth Area (BIMP-EAGA) and IMT-GT Time Release Study. The Working Group is
encouraged to develop new mechanism to evaluate progress of the WG by separating
facilitation projects and physical projects.
Recommendations
Trade and investment facilitation measures are aimed to make IMT-GT a trade and investment
friendly subregion by 2021. This can be accomplished by enhancing the competitiveness of the
subregion for investment and exports, reducing cost of doing business, and promoting freer
flow of goods and services in the IMT-GT subregion. The adoption of the FOC would support
the integration of IMT-GT economies and bridge the development gaps. At the same time, FOC
would support the AEC Vision to be a single market, highly competitive and integrated region.
Additionally, the WGTI may need communicate the FOC to the private sector especially in IMT-
GT to inform them on the enhancement of CIQ to facilitate cross-border movement of goods
and people in IMT-GT. WGTI should take this as the opportunities to showcase the FOC on CIQ
in solving the bottleneck to achieve seamless cross-border movement.
WGTI must strengthen its role as a forum for discussing trade and investment trends related to
trade regulations and investment opportunities available in IMT-GT. To allow this, WGTI may
need to invite government agencies related to investment boards both federal and
states/provinces. The engagement with the investment boards would enable WGTI to play its
role effectively in facilitating investment in the subregion. At the same time, JBC also will have
the opportunities to get the information from the investment boards on potential area to
invest and get the assistance from the WGTI under one platform.
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The WGTI also should play larger role to develop cross sectoral projects especially in the
second half of IB2017-2021. The WG could work with other WGs such as WGHAPAS and
SWGICT in promoting and marketing Halal IMT-GT products and services as well as e-
commerce. WGHAPAS need the assistance from WGTI to promote their products and services
internationally especially the MSMEs. Joint seminar and training programmes between
WGHAPAS and WGTI can be conducted to provide related information such as on export, tax,
licensing and logistics to the MSMEs.
Transport and ICT Connectivity
Focus Area Strategy and Indicators
Under IB2017-2021, total value of priority connectivity projects in IMT-GT is approximate
USD47 billion covering various infrastructure development to connect the subregion along its
priority economic corridors. The development is including land connectivity infrastructures
such as road, railway and bridges, seaports, airports, CIQ facilities, inland ports and ICT
infrastructure. Most of the projects are expected to be completed in the implementation of
IB2017-2021 and the remaining will be carried forward to the next IB. The completion of the
connectivity projects will improve accessibility and integration for inclusive development in the
subregion.
This focus area consist of Transport Connectivity and ICT Connectivity and the inclusion of the
ICT Connectivity was proposed in the 22nd IMT-GT MM in Phang Nga, Thailand September
2016. Following the recommendation from the meeting, a SWGICT is established in 2017 to
institutionalise and advance ICT Connectivity goals.
Under IB2017-2021, the scope of Transport Connectivity is transport facilitation and transport
infrastructure development. Transport Connectivity aims to develop IMT-GT as a seamless,
inclusive, sustainable, safe and secured network of inter-connected transport corridors. There
are five (5) objectives under Transport Connectivity which is divided into three (3) sections
namely: (i) land connectivity; (ii) maritime connectivity; and (iii) air connectivity.
The scope of ICT Connectivity is on ICT infrastructure development and business
transformation using ICT that aimed at comprehensive use of ICTs for inclusive and
competitive growth. Under IB2017-2021, the scope has three (3) objectives accompanying
with five (5) actions.
Project Implementation Status
Transport Connectivity
Table 7 illustrates the WGTIC project listing under IB2017-2021 and implementation status. As
indicated in IB2017-2021, the focus of Transport Connectivity is to put in place a regulatory
framework that governs and facilitates cross-border movement of goods, people and vehicles
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in order to achieve Transport Connectivity goals. Currently, the Transport Connectivity has
completed the revision of the IMT-GT MoU on Air Linkages that will complement the ASEAN
Open Sky Arrangements. The revised MoU was signed on 9 November 2018 by the Transport
Minister of Indonesia, Malaysia and Thailand. The next step is to implement the revised MoU
by preparing the action plan to increase air connectivity in the subregion.
IMT-GT also seek to implement ASEAN Framework Agreement on the Facilitation of Inter-State
Transport (AFAFIST) and ASEAN Framework Agreement on the Cross-Border Transport of
Passengers (CBTP) within the period implementation of IB2017-2021. The Dumai-Melaka Ro-
Ro is one of the IMT-GT signature projects that will not only enhance maritime connectivity
between Indonesia and Malaysia but also to complete IMT-GT connectivity as overall and
ASEAN as general. The project has been delayed in completion due to unforeseen
circumstances and is expected to complete by December 2020. To ensure smooth
operationalisation of the Ro-Ro services, a framework on vehicle harmonisation will be
developed. Under IB2017-2021, the Transport Connectivity plan to enhance maritime
connectivity including enhancement of container throughput, promotion of ro-ro ferry services
and cruise shipping.
ICT Connectivity
Currently, ICT Connectivity has two (2) on-going projects and has completed one (1) project. In
February 2019, the SWGICT agreed to establish IMT-GT e-commerce platform by leveraging
digital technology and utilising as channel to market and sell local products to broader market.
The focus of this project is to assist the MSMEs in the subregion applying digital technology in
promoting their busines. To equip MSMEs with adequate and necessary knowledge, a series of
training will be conducted in the Member Countries to enable them to enter the digital
marketplaces. The application of ICT in the business will empower the MSMEs and private
sector at large through comprehensive use of ICT for inclusive and sustainable development.
NO PROJECT NAME PROJECT PROPONENT TIMELINE / DATE
DESCRIPTION
TRANSPORT CONNECTIVITY
1 Revision of IMT-GT MoU on Air
Linkages
MOT Indonesia MOT
Malaysia
MOT Thailand
Status:
Completed
2017 –
November 2018
2 Ratification and Implementation of
AFAFIST
MOT Indonesia
MOT Malaysia
MOT Thailand
Status: On-going
2017 –
December 2021
3 Finalisation and Operationalisation
of ASEAN CBTP
MOT Indonesia
MOT Malaysia
Status: On-going
2017 –
Review Implementation Blueprint 2017-2021
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MOT Thailand December 2021
4 Port Community Dialogue Marine Department,
MOT Thailand
Status: On-going
2019 –
December 2020
5 Action Plan to Increase Air
Connectivity in the Subregion
MOT Indonesia
MOT Malaysia
MOT Thailand
Status: On-going
2018 –
December 2021
6 Vehicle Harmonisation Framework
for RoRo Dumai-Melaka
MOT Indonesia
MOT Malaysia
Status: On-going
2019 –
December 2020
ICT CONNECTIVITY
1 Workshop on IMT-GT Smart City Digital Economy
Promotion Agency, Min of
Digital Economy and
Society Thailand
Status:
Completed
September 2018
2 E-commerce platform Min of Communication &
Information Technology
Indonesia
Min of Communications &
Multimedia Malaysia
Min of Digital Economy &
Society Thailand
Status: On-going
February 2019 –
December 2022
3 Training for MSMEs on Digital
Technology Opportunities
Min of Communication &
Information Technology
Indonesia
Min of Communications &
Multimedia Malaysia
Min of Digital Economy &
Society Thailand
Status: On-going
February 2020 –
December 2022
Table 9: Working Group on Transport and ICT Connectivity Projects
New Proposals
During 13th IMT-GT SPM, WGTIC proposed to include the aspect of security and safety concern
regarding dangerous goods, health and environment. Awareness and training should not only
be conducted for the government officials but also be extended to personnel working at the
cargo handling industry such as in proper packing practices in compliance with requirements of
the authorities. Additionally, the global health crisis has changed the scenario in transportation
industry and our reliance on technology. The WG may consider to develop regional project on
providing suitable trainings and preparing Standard Operating Procedures in ensuring the
health and safety of the people.
Issue and challenges
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32
The role of WGTIC is not only to construct the infrastructure but they also must ensure the
local get the benefit. For instance, several infrastructures that was built could not cater the
needs of the public as it was built far from the strategic area. As a result, the operation of the
public transport in that area could not sustain due to low load factor. In this case, it is
important for the WG to act as advisor on the development of the infrastructure that not only
benefited the local but also to ensure its sustainability.
The advancement in technology has created innovation that could increase productivity and
improve efficiency in day-to-day operation. The new technology can provide competitive
advantage, create new revenue streams, automate routine tasks, and expedite research and
product development. However, for those who are unable to keep up with the new technology
especially the MSMEs who might be left behind and that could be resulting the rise of
inequality.
Besides prepare sufficient infrastructure including internet connectivity, the MSMEs should be
equipped with knowledge, skills and technological capabilities. As this is the cross-cutting
issues, all WGs should be working together such as in developing new educational
programmes, updating existing training programme, develop policies that create a conducive
environment and investment and promote the development of technologies that emphasize
for inclusive development.
Recommendations
WGTIC proposed to conduct more studies on transport to ensure the sustainability of the
infrastructure that developed and balance the implementation of all sector. Some
infrastructure built by the government may not be practical to be used as it fail to provide
support for the business player and community as general.
It is also important for IMT-GT as general and CIMT as the secretariat of IMT-GT to engage with
other international bodies such as International Maritime Organisation, International
Transport Association and International Civil Aviation Organisation for effective
implementation of certain measures as well as sharing information, expertise and knowledge.
Besides that, IMT-GT may leverage into their wide network to promote the subregion and
possibility to develop potential collaboration in specific area that require more technical
assistance.
As SWGICT become more familiar with the structure of IMT-GT and their increasing role in the
subregion, SWGICT may be considered be established as a new WG in the next IB. The
formation of full fledge WG will show the importance of ICT in the subregion. ICT is no longer
as the alternative to our daily life but it is the solution for providing newer, better and quicker
ways that has significantly impact the economy.
Focus Area: Environment
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33
Focus Area Strategy and Indicators
As recommended in the Mid-Term Review of IB2012-2016, a new body to oversee the
environment agenda in the subregion should be established. At the 22nd IMT-GT Ministerial
Meeting and 23rd IMT-GT Senior Officials’ Meeting in Phang Nga, Thailand, September 2016,
the CMGF will be the interim body responsible for the environment cooperation agenda. The
1st IMT-GT Green Council Forum was held in Melaka in 2016 and IMT-GT Green Council was
formed chaired by the appointed Chief Minister/Governor in IMT-GT. The chairmanship of the
Green Council is rotation basis, once a year.
In the 2nd IMT-GT Green Council Meeting, the Meeting agreed with the proposal to establish
IMT-GT Green Cities Mayor Council in response to the increasing role of the city level in
implementing environmental policy developed by the state/province and federal level. After
several consultations, the 1st Green Cities Mayor Council established in August 2020 with the
formation of portfolios namely: (i) transportation; (ii) solid waste management; (iii) energy; (iv)
education for sustainable development; (v) carbon literacy; (vi) circular economy; and (vii)
biodiversity.
To upscale the current institutional mechanism of IMT-GT on environment agenda, a WG on
Environment (WGE) was proposed to be established in 2020. WGE will work closely with IMT-
GT Green City Council and IMT-GT Green Cities Mayor Council and other related WGs to
support, coordinate, facilitate and monitor the implementation of projects under the
environment agenda.
The goal of Environment Focus Area is to make IMT-GT as an international showcase of the
Green City Initiative and a role in environmental conservation by 2021. To achieve this goal,
three (3) strategies will be pursued as follows:
1. Upscale and replicate the Green City Initiative across the subregion;
2. Undertake coordinated efforts for the sustainable management of the natural
resources in IMT-GT, such as the forests, water, wildlife, among others; and
3. Enhance collaboration in the management and restoration of adjacent
ecosystems (e.g. watersheds, breeding grounds and migration routes of
animals).
Project Implementation Status
Under IMT-GT Vision 2036, IMT-GT intends to transform ‘middle-weight’ cities into more
liveable and sustainable urban spaces through the preparation and implementation of Green
City Action Plan (GCAP) in 40 cities across the subregion. The Leaders directed IMT-GT to
upscale the successful implementation of GCAP models based on the learning from early
Review Implementation Blueprint 2017-2021
34
movers, i.e. Melaka, Songkhla and Medan in implementing GCAP. To upscale GCAP models,
IMT-GT developed IMT-GT Sustainable Urban Development Framework (SUDF) 2019-2036 for
the subregion, as a steering document for identification and implementation of actions, in-line
with the objectives stated under environment pillar of the IMT-GT.
SUDF was prepared in participatory manner that addresses a planning horizon extending from
2019 until 2036 consisting of a three (3) five-year implementation phases (2019-2023, 2024-
2028 and 2029-2033) and a final three (3) year implementation phase (2034-2036) with
specific targets and a draft action plan for the entire planning period (2019-2036).
As of now, all strategies for Environment Focus Area under IB2017-2021 has been
implemented. Planning and projects under SUDF will be implemented in the second half of the
IB2017-2021 by the new established WGE and IMT-GT Green Cities Mayor Council.
NO PROJECT NAME PROJECT PROPONENT TIMELINE / DATE DESCRIPTION
1 Sustainable Urban Development Framework and Action Plan 2019-2036
IMT-GT Status: Completed June 2016 – December 2018
2 Integrated Green Urban Transport Plan
IMT-GT, ADB Status: Completed September 2018 – September 2019
3 Regional Green Cities Conference 1st Green Cities Conference/Forum: Sept 2017 2nd Green Cities Conference/Forum: Oct 2018 3rd Green Cities Forum: Jan 2020
IMT-GT, ADB Status: Completed
4 Non-Revenue Water Forum IMT-GT, ADB Status: Completed April 2019
Table 10: Focus Group on Environment Projects
New Proposals
To replicate and upscale the implementation of Green City Initiative, Environment pillar will
work closely with other WGs such as UNINET to tap into their expertise on sustainable
development, WGTIC to implement projects under IMT-GT Green Urban Transport Plan, WGAA
on eco-friendly practice and WGT for responsible tourism.
Issue and challenges
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The Environment Pillar has implemented all strategies under IB2017-2021 and the key success
is the strong cooperation and collaboration given by the state/province and city level as well as
commitment by the SOs to implement green agenda in the subregion. However, the nature of
environment issue is broad and complex, and it requires the involvement of various ministries,
agencies and institutions. Issues such as related to policy, regulation and finance that require
guidance from lined ministries might be delayed. The establishment of the WGE will
strengthen the role of the Environment Pillar and acceleration of several projects as planned
under SUDF to achieve the goals in IB2017-2021 and IMT-GT Vision 2036.
Recommendations
To accelerate the implementation of the SUDF, the WGE should be established in the second
quarter of the IB2017-2021. It is timely to be established during this period as SUDF has just
been endorsed in 2019. WGE will guide in term of policy and existing mechanism i.e. Green
Council and Green City Mayor Council for the implementation of SUDF. It is also recommended
to include as much as possible related ministries and agencies such as Energy and Natural
Resources Ministry and Forestry Department as the committee of the WGE because
environment pillar has touch in various cross-cutting issues.
At the same time, FGE is quite unique as compared to other Focus Group due to the reason it
heavily involves with the local governments. It is based on the reason that the effort of
conserving the environment must involves as much as possible all related parties from federal
government to the local councils. However often time, there are gaps in conveying the IMT-GT
goals on environment to the local councils. Communication to local councils requires efficient
cooperation of various IMT-GT key players from government and private sector. Certain areas
may need assistance from the JBC members to disseminate the information on IMT-GT to the
local councils that could create awareness on IMT-GT environmental issues.
Focus Area: Human Resource Development, Education and Culture
Focus Area Strategy and Indicators
The WGHRDEC is under collaboration between ministries related to labour, manpower and
international cooperation. Beyond the function of labour ministries, UNINET is included as
part of the WG. In the scope of culture, IMT-GT has an active socio-cultural cooperation
programme mainly in the areas of sports, music and youth engagement that is usually
conducted outside the formal IMT-GT ambit.
Under IB2017-2021, the scope of this focus area encompasses:
a) Developing and upgrading of IMT-GT workforce skills and improving labour
mobility;
b) Capacity building, knowledge exchange, technology transfer and research and
development as performed under the IMT-GT UNINET framework; and
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36
c) Cooperation in education, sports, arts, music and other forms of socio-cultural
activities that contribute to people-to-people connectivity.
WGHRDEC aims to have a competitive workforce, enhanced labour mobility, improved labour
market efficiency and strong people-to-people connectivity by 2021. To achieve the goal,
WGHRDEC will pursue six (6) priority strategies with two (2) specific strategies for UNINET.
As an enabler, WGHRDEC is committed to provide market driven skills trainings that meet the
needs of private sector with priority given to three Lead Focus Areas (Agriculture and Agro-
based Industry, Tourism, and Halal Products and Services).
Project Implementation Status
Table 9 illustrates the WGHRDEC project listing under IB2017-2021 and implementation status.
Under IB2017-2021, WGHRDEC has completed four (4) projects and currently has six (6) on-
going projects. The implementation of these projects has covered all its four (4) strategies and
six (6) actions except actions A.1.1.2: To implement, where appropriate, the recommendations
of the proposed labour demand and supply survey and A.3.1.2: To conduct a labour market
information system training. Both actions are pending due to its related actions are yet to be
completed such as the implementation of labour demand and supply survey and development
of labour market information system.
The WG has successfully established IMT-GT Vocational Training Centre Networking (VTC-NET)
that is currently consisting of government-funded vocational training centre in IMT-GT. The
networking focused on four (4) areas of VTC development namely: (i) Academic Quality
Management System (AQMS); (ii) Curriculum Design Development (CDD); (iii) pedagogy; and
(iv) harmonisation of skills standard among the member countries. Follow-up projects were
designed to comprise of trainings in the four (4) areas conducted on rotation basis between
the members. The first round of training was conducted in February 2020 on AQMS and
harmonisation of skills standard in automotive as well as CDD and pedagogy. The remaining
trainings will be conducted in between 2020 and 2021.
The completion of IMT-GT Labour Market Information System will provide the information
about supply and demand of labour in the subregion which will support labour mobility in
ASEAN under Mutual Recognition Agreements (MRAs). Currently, WGHRDEC has chosen
tourism as the pilot occupation according to MRA.
NO PROJECT NAME PROJECT PROPONENT TIMELINE / DATE
DESCRIPTION
1 Computer Networking Technology Manpower Department, Min of Human Resources Malaysia
Status: Completed September
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37
2018
2 IMT-GT Vocational Training Centre Networking (VTC-NET)
Min of Manpower Indonesia
Status: Completed February 2017 – November 2018
3 Training: Quality Management System for Automotive
Min of Human Resources Malaysia
Status: Completed February 2020
4 Training: TVET Training Methodology Min of Human Resources Malaysia
Status: Completed February 2020
5 IMT-GT Labour Market Information System
Labour and Transmigrations Office of South Sumatera Province
Status: On-going January 2017 – December 2021
6 Training: AQMS and Harmonisation of Skills Standards on Traditional Spa and Massage under VTC-NET
Department of Skill Labour Development and Thailand International Cooperation Agency
Status: On-going November 2020
7 Training: AQMS and Harmonisation of Skills Standards on Food & Beverages under VTC-NET
Min of Manpower Indonesia
Status: On-going October 2021
8 Competency Skill Standards in Spa Department of Skill Labour Development and Thailand International Cooperation Agency
Status: On-going September 2017 – December 2021
9 Competency Skill Standards in Welding Department of Skill Labour Development and Thailand International Cooperation Agency
Status: On-going September 2018 – December 2021
10 Strengthening of Welding Trainers in the subregion
Department of Skill Labour Development and Thailand International Cooperation Agency
Status: on-going 2020 – 2021
Table 11: Working Group on Human Resource Development, Education and Culture Projects
New Proposals
At the 9th WGHRDEC Meeting, the WG agreed on the importance of labour demand and supply
data which will be used to support the development of Labour Market Information System.
Following the decision made in the 9th WGHRDEC meeting, WGHRDEC agreed to provide data
on five (5) occupations according to International Standard Classification of Occupations (ISCO)
namely: (i) manufacturing; (ii) construction; (iii) services; (iv) construction; and (v) mining. The
analysis of the data will be used to develop demand-driven skills training that will support the
implementation of Strategy 1.1 of the Human Resource Development, Education and Culture.
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38
In response to the current megatrend of Fourth Industrial Revolution (4IR), the WG aims to
support skills development for instance reskill the current workforce and prepare the young
generation with necessary skills and knowledge. This initiative will be done in-collaboration
with UNINET and other WGs such as SWGICT.
Issue and challenges
To response to lack of suitable human capital in the subregion, the active involvement of
private sector in the subregion especially in the WGHRDEC is essential. Information from the
private sector especially on the required skills and knowledge to fill the employment gap is
important and should be conveyed to the WG for them to accommodate and prepare
workforce as required by the private sector.
Recommendations
As an enabler, WGHRDEC should enhance collaboration with other WGs to respond to the
current challenges and labour market. The skills development programme should be able to
fill-up skills gap in IMT-GT and create opportunities in advancing the subregion. For instance,
WGHRDEC may provide training for the MSMEs on online marketing and sales to take
advantage on the opportunities from the 4IR. The training will provide space for the MSMEs to
tap into wider market and empowering MSMEs as well as promote equal opportunity by
leveraging digital technology.
Additionally, the WG may need to develop joint programme with private sector to identify the
current labour market needs and require skills. This programme should be conducted in
regular basis to cope up with the current situation and new challenges. This will be in-line with
their focus in developing and upgrading of IMT-GT workforce skills and improving labour
mobility.
Summary of Projects by Sectoral Cooperation under IB2017-2021 There is a total of 26 completed projects and 47 on-going projects under the IB2017-2021.
During the 13th IMT-GT SPM in Bangkok, Working Groups proposed to add 18 new projects to
be part of Implementation Blueprint 2017-2021 projects. Details of projects by sectoral
cooperation is displayed on Table 12.
Sector Completed Projects
On Going Projects
New projects proposed in the 13th IMT-GT SPM
2020
Agriculture and Agro-Based Industry
2 5 3
Tourism 8 6 4
Halal Products and Services 5 10 2
Review Implementation Blueprint 2017-2021
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Trade and Investment 1 13 0
Transport & ICT Connectivity
2 7 3
Environment 4 0 3
Human Resource Development, Education and Culture
4 6 3
Total 26 47 18
Table 12: Summary of Projects by Sectoral Cooperation under IB2017-2021
Part III. Analysis of Completion VS Vision Goals and Target of
IMT-GT
A. Implementation Blueprint 2017-2021 Priority Targets
IB2017-2021 was created as the first milestone to achieve the IMT-GT Vision 2036.
Under this IB, it has set out seven key priority targets/objectives which also in
accordance with the objectives of IMT-GT Vision 2036, such as:
a) Real GDP increases to US$ 299 billion from US$ 215 billion (baseline 2014)
b) GDP per capita increases to US$ 16,974 (2015: US$ 13,844)
c) Intra-IMT-GT trade increases to 11.5 percent of total IMT trade (2015: 9.2 percent)
d) Average annual FDI inflows to IMT-GT increase to US$ 11 billion (2011-2015: US$ 8
billion per annum (5-year average))
e) Average annual international visitor arrivals increase to 52 million persons (2015:
39 million)
f) IMT-GT Project Implementation Team and JBC implement a total 100 cross-border
projects with direct MSMEs and social enterprises’ participation (i.e., 20 projects
per year)
g) At least 10 cities in IMT-GT implement Green City Action Plan (2016: 5 cities).
The Review investigates the current position of IB 2017-2021 objectives to its target.
Due to incomplete data for 2019, the review shows current achievement of IB 2017-
2021 until 2018.
B. Current Completion of Implementation Blueprint 2017-2021
Real GDP increases to US$ 299 billion from US$ 215 billion.
Review Implementation Blueprint 2017-2021
40
Real GDP 2014 2015 2016 2017 2018
INDONESIA (in Million Rupiah)
Real GDP Indonesia 10,569,705,300.00 11,526,332,800.00 12,401,728,500.00 13,589,825,700.00 14,838,311,500.00
Real GDP Indonesia GT 2,458,866,109.17 2,584,134,476.83 2,781,629,050.43 2,986,643,460.42 3,234,040,367.11
Aceh 127,897,069.76 129,092,659.01 136,843,817.97 145,806,922.50 155,911,115.34
Sumatera Utara 521,954,951.83 571,722,008.76 626,062,907.40 684,634,426.63 741,751,634.36
Sumatera Barat 164,944,256.80 179,951,980.32 196,099,176.57 213,893,468.18 230,571,985.59
Riau 679,395,859.59 652,761,630.87 681,699,030.26 704,705,026.87 755,435,017.01
Jambi 144,814,418.30 155,065,655.99 171,199,468.14 189,787,722.25 208,366,820.85
Sumatera Selatan 306,421,601.29 331,765,701.71 353,866,964.62 382,885,701.28 419,723,506.88
Bengkulu 45,389,903.77 50,334,017.70 55,384,172.03 60,657,676.57 66,412,895.04
Lampung 230,794,450.18 252,883,103.49 279,417,617.21 306,700,430.70 333,670,882.90
Kep. Bangka Belitung 56,373,615.10 60,987,324.50 65,048,232.09 69,865,208.41 73,121,005.38
Kepulauan Riau 180,879,982.55 199,570,394.48 216,007,664.12 227,706,877.03 249,075,503.75
Foreign exchange (1 USD to Rupiah)
11,867.961 13,376.931 13,302.730 13,384.187 14,257.023
MALAYSIA (in Million Ringgit)
Real GDP Malaysia 1,012,449 1,176,941 1,229,312 1,299,897 1,361,533
Real GDP Malaysia GT 471,966 552,720 578,976 614,810 649,534
Kedah 34,098 39,550 41,156 43,059 44,806
Kelantan 19,053 21,408 22,476 23,491 24,096
Melaka 30,073 36,077 37,713 40,814 42,386
Negeri Sembilan 35,951 40,186 41,771 43,803 45,653
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Perak 54,781 63,176 65,958 69,291 72,942
Perlis 4,807 5,353 5,570 5,694 5,884
Foreign Exchange (1 USD to RM) 3.273 3.906 4.148 4.300 4.035
THAILAND (in Million USD)
Real GDP (national) 284,248.72 278,016.20 279,006.25 301,972.92 330,346.97
Real GDP (subregional) 23,268.56 22,785.93 23,149.56 24,175.03 26,520.84
Chumphon 1,231.30 1,118.33 1,205.57 1,233.82 1,405.01
Krabi 1,497.92 1,425.35 1,416.31 1,542.79 1,664.72
Nakhon Si Thammarat 2,793.39 2,623.67 2,612.11 2,785.70 3,054.40
Narathiwat 656.69 615.41 620.15 599.17 724.50
Pattani 1,112.94 1,040.88 1,057.61 898.67 1,006.89
Phang Nga 867.44 1,011.98 1,035.81 1,172.93 1,302.00
Phattalung 566.91 541.82 567.94 569.06 629.90
Phuket 3,583.20 3,793.02 4,107.45 4,459.39 5,021.22
Ranong 534.40 488.97 514.08 550.52 597.18
Satun 690.19 656.46 628.69 617.98 643.66
Songkhla 4,769.56 4,752.41 4,675.32 4,706.19 5,119.08
Surat Thani 3,583.20 3,793.02 4,107.45 4,459.39 5,021.22
Trang 1,228.99 1,132.25 1,144.55 1,194.56 1,229.12
Yala 697.85 645.68 652.78 652.74 738.66
Table 13: Real GDP Indonesia, Indonesia GT, Malaysia, Malaysia GT, Thailand and Thailand GT from 2014 to 2018.
Source:
Indonesia-GT: Statistics Indonesia
Malaysia-GT: Department of Statistics, Malaysia
Thailand-GT: National Statistical Office of Thailand
Review Implementation Blueprint 2017-2021
42
GDP per capita increases to US$ 16,974 (2015: US$ 13,844)
GDP per capita 2014 2015 2016 2017 2018
INDONESIA (in Million Rupiah)
GDP per capita Indonesia 41.92 45.12 47.94 51.89 55.99
GDP per capita Indonesia GT 45.19 46.75 49.57 52.44 55.99
Aceh 26.07 25.81 26.85 28.10 29.52
Sumatera Utara 37.91 41.02 44.39 48.00 51.46
Sumatera Barat 32.14 34.63 37.28 40.19 42.84
Riau 109.79 102.89 104.86 105.84 110.85
Jambi 43.30 45.58 49.50 53.99 58.36
Sumatera Selatan 38.58 41.20 43.36 46.31 50.14
Bengkulu 24.60 26.85 29.08 31.36 33.83
Lampung 28.76 31.15 34.05 37.00 39.86
Kep. Bangka Belitung 41.95 44.43 46.40 48.83 50.09
Kepulauan Riau 94.34 101.15 106.50 109.33 116.58
Foreign exchange (1 USD to Rupiah)
11,867.961 13,376.931 13,302.730 13,384.187 14,257.023
MALAYSIA (in Ringgit)
GDP per capita Malaysia 36,030 37,739 39,505 42,834 44,679
GDP per capita Malaysia GT 29,187 33,648 34,754 36,444 38,050
Kedah 17,327 18,864 19,835 20,960 21,410
Kelantan 11,751 12,159 12,909 13,700 13,668
Melaka 38,659 40,582 42,088 46,799 47,960
Negeri Sembilan 35,861 36,908 38,744 41,733 43,047
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Perak 24,130 25,610 27,343 29,335 30,303
Perlis 20,994 21,540 22,588 23,611 24,442
Foreign Exchange (1 USD to RM) 3.273 3.906 4.148 4.300 4.035
THAILAND (in USD)
GDP per capita (national) 6,028.59 5,902.63 6,051.20 6,632.54 7,329.31
GDP per capita (subregional) 3,845.48 3,734.39 3,955.94 4,263.47 4,553.14
Chumphon 4,423.26 4,106.83 4,753.67 5,023.35 5,453.31
Krabi 5,875.79 5,468.44 5,671.44 6,172.04 6,419.40
Nakhon Si Thammarat 2,947.26 2,758.63 2,881.91 3,142.12 3,375.05
Narathiwat 1,723.18 1,570.86 1,663.29 1,677.56 1,920.90
Pattani 2,403.53 2,273.64 2,420.20 2,128.32 2,342.77
Phang Nga 5,651.33 6,690.25 7,342.44 8,756.13 9,715.65
Phattalung 2,083.23 1,927.80 2,115.27 2,192.20 2,265.90
Phuket 8,152.58 8,709.48 9,761.91 10,933.41 12,489.17
Ranong 2,772.05 2,519.80 2,780.47 3,097.48 3,217.70
Satun 3,482.71 3,297.20 3,305.20 3,339.39 3,327.22
Songkhla 4,422.09 4,316.16 4,281.25 4,420.08 4,701.79
Surat Thani 4,811.63 4,672.13 4,890.31 5,540.35 5,644.29
Trang 3,195.80 2,869.92 3,058.53 3,328.84 3,175.08
Yala 2,719.80 2,422.43 2,575.56 2,704.30 2,841.63
Table 14: GDP per capita Indonesia, Indonesia GT, Malaysia, Malaysia GT, Thailand and Thailand GT from 2014 to 2018.
Source:
Indonesia-GT: Statistics Indonesia
Malaysia-GT: Department of Statistics, Malaysia
Thailand-GT: National Statistical Office of Thailand
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Intra-IMT-GT trade increases to 11.5 percent of total IMT trade
Trade has been a major driven of growth in the sub-region, where trade values become one of
the important measurements to determine the achievement of sub-regional cooperation.
Under IB 2017-2021, Intra-IMT-GT trade is targeted to increase to 11.5 percent of total IMT
trade y 2021, compared to 9.2 percent in 2015.
Refer to 10th Sub-Working Group on IMT-GT Trade, Investment and Tourism Database (ITITD)
meeting, the sub-working group found several difficulties in calculating Intra- IMTGT trade, with
reason as follow:
a. In general, countries only record the country of origin or country/port of transit,
therefore it is challenging to calculate intra IMT-GT trade. Border trade between
Malaysia and Thailand may be calculated based on land-border trade, however
Indonesia has no land border with other IMT-GT member countries.
b. The calculation of intra IMT-GT Trade is possible, however it requires extra efforts and
budget from the Sub-Working Group on ITITD by conducting special survey to each of
exit and entry points in each of IMT-GT area.
IMT-GT TRADE IN GOODS, 2013-2018, BILLION, US$
Therefore, to measure the success of IMT-GT cooperation in trade cooperation, the IMT-GT
trade in goods calculated. From the graph above, IMT-GT total trade has been increasing since
2016 Exports continued to dominate total trade in IMT GT with trade balance rose moderately
from US 26.5 billion in 2017 to US 37.7 billion in 2018.
173.5 173.5 148.2 144.1 161.0
172.5 185.2 193.2
165.7 161.1 187.5
210.3
11.7 19.7 17.5 17.0 26.5 37.7
2013 2014 2015 2016 2017 2018
IMT-GT Imports IMT-GT Exports IMT-GT Trade Balance
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Average annual FDI inflows to IMT-GT increase to US$ 11 billion
*) in billion USD
**) Indonesia used Realized Investment, while Malaysia and Thailand use Approved Investment.
Under the Implementation Blueprint 2017-2021, it targeted that the average annual FDI inflows
to IMT-GT increase to US$ 11 billion (2011-2015: US$ 8 billion per annum (5-year average)).
From the graph above, we may see that currently IMT-GT cooperation stands on the average of
US$ 9.1 billion per annum, or 82.7% from the target. (from 2014 to 2018). The Investment in
IMT-GT remained relatively resilient for the period of 2014-2018. Foreign Direct Investment
(FDI) continue to dominate investment in IMT-GT since 2014.
Average annual international visitor arrivals increase to 52 million persons
9.4 8 8.9 9.4 10.1
0
3
6
9
12
2014 2015 2016 2017 2018
Foreign Direct Investment in IMT-GT 2014 - 2018
Foreign Direct Investment
38.3 41.3 47.4
33.5 37.3 37.3 38.1 41.5 44.8
2010 2011 2012 2013 2014 2015 2016 2017 2018
INTERNATIONAL ARRIVALS TO IMT-GT, 2010-2018, MILLION, PERSONS
FDI* 2014 2015 2016 2017 2018
Indonesia GT** 3.84 3.73 5.67 5.50 4.84
Malaysia GT** 5.25 4.03 2.81 3.53 4.83
Thailand GT** 0.26 0.19 0.40 0.39 0.42
Review Implementation Blueprint 2017-2021
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The international visitor arrival is one of the important aspects to measure the achievement of
tourism cooperation in IMT-GT. IB2017-2021 targeted to received international visitor arrivals
to 52 million persons in 2021. According to 2018 IMT-GT Statistical Booklet, there are 44.8
million tourist arrival to IMT-GT area, or around 86% from the target. IMT-GT needs to gain at
least additional of 7.2 million international visitors. Looking through the positive trends with an
increment number of international visitors every year in IMT-GT area, the possibility to achieve
the target is quite positive.
Based on the inputs received during the review, the International Tourist Arrivals data in 2015
provided by the SWGITITD is different with the baseline data in 2015 stated in IB2017-2021. To
uniform the data calculation, IMT-GT will use the data provided by the SWGITITD as their main
reference.
IMT-GT Project Implementation Team and JBC implement a total 100 cross-border projects with
direct MSMEs and social enterprises’ participation (i.e., 20 projects per year)
Under IB2017-2021, IMT-GT target to implement a total of 100 cross-border projects with
direct participation from MSMEs and social enterprises. For the period of 2017 to February
2020, IMT-GT implementing 55 cross-border projects. The cross-border projects are included
the physical connectivity projects (PCPs) and sectoral projects. The implementation of the
cross-border projects is reinforced by three guiding approaches namely: (i) project-centric
approach towards greater regional integration; (ii) project-specific and location-specific
regulatory reforms (joint debottlenecking effort) and (iii) spatial approach to regional
development.
JBC appears as the institutional mechanism in the IMT-GT representing the private sector in the
subregion. The active role of private sector is expected in IMT-GT project implementation. In
the review period, JBC has participated in IMT-GT meeting and forum to update their activities
and communicate on project proposal and initiatives. JBC demonstrated activities in enhancing
the IMT-GT land border trade, medical tourism and redevelopment of heritage IMT-GT oldtown
cities (Medan, Penang, Songkhla & Phuket). However, the joint projects among business of
three countries are not reported during the review. JBC has involved in IMT-GT since its
inception, yet there is no significant public-private partnership. During first half of the IB, the
issue of legalization of JBC is agreed by IMT-GT as a path to strengthen collaboration among
private sector in the subregion. JBC Thailand is the lead to realize the establishment together
with JBC Indonesia and JBC Malaysia.
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Although the implementation of the projects covers the involvement of MSMEs however the
participation of social enterprise is almost invisible. Social enterprises span various spectrum of
non-profit to for profit entities. The way social enterprises differ from traditional businesses
which is typically to fill-up the gap in existing services. IMT-GT should encourage the
development of social enterprise in the subregion as social entrepreneurs use market-driven
strategies to tackle social issues in innovative approach. On the top of the support from the
national government such as in term of accessibility to capital, IMT-GT should work with
universities, local think-tank as well other groups to fill-up the missing link. These institutions
could play crucial role such as in promoting innovation, encourage critical thinking and
application of technology.
In the near future, it is hope that number of social enterprises in IMT-GT would increase and
operate actively in the subregion. Looking into the positive progress of the implementation of
cross-border projects, IMT-GT would be able to achieve its target by end of 2021.
At least 10 cities in IMT-GT implement Green City Action Plan (2016: 5 cities).
The IMT-GT Subregional cooperation targets sustainable economic development, whereby the
environment sector is part of its enabler. To cope up with the recent environment agenda, IMT-
GT with the assistance from Asian Development Bank (ADB) have developed GCAP for five cities
in IMT-GT, Medan and Batam (Indonesia), Melaka (Malaysia) and Songkhla and Hat Yai
(Thailand) under the Green Cities Initiative.
Based on the learning from early movers, (Medan, Batam, Melaka, Songkhla, Hat Yai), the
Leaders has directed IMT-GT to upscale GCAP models and work towards the development of
Sustainable Urban Development Framework 2019-2036 (SUDF). For kick start the
implementation of SUDF, Green Cities Initiative will cover the area of transport, energy, solid
waste management, biodiversity, education for sustainable development, carbon literacy and
circular economy.
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As of February 2020, the Green Cities Initiatives has conducted programme on water
management with Kedah and Penang, and developed Integrated Green Urban Transport Plan
(IGUTP) for Melaka, Penang, Langkawi, Krabi and Phuket. The second phase of IGUTP will cover
Banda Aceh and Pekanbaru that is expected to be completed towards the end of 2020.
The active involvement in green agenda not only pursuing by the state and province
government but also by the local governments. Most of the local governments in IMT-GT seeing
the opportunities to involve with IMT-GT on environment agenda as their spring board to get
international recognition. For the target indicated under IB2017-2021, IMT-GT has surpassed
the target by 11 cities.
To ensure the active involvement and momentum from the state, province and city level, it is important
for them to receive supports from federal government. It is also important for the state and province
government to incorporate IMT-GT green agenda into their planning in-line with the planning under
federal government. CIMT also should play effective role as advisor and coordinator especially in
translating global agenda to local action and assist the cities to tap into international fund and grant.
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Part IV. Conclusion
The implementation of IB2017-2021 entered the second-half of the period and several
achievements have been made. Currently, IMT-GT has implemented 48 projects with 24
completed up to February 2020. Based on the 13th IMT-GT SPM, 18 new project proposals
developed and targeted to be implemented in the remaining 2020 and 2021. However, with the
outbreak of Covid-19, some project completion might be delayed and the implementation of
new project proposals might be postponed. Until February 2020, all the strategies have been
implemented with 19 strategies are completed. This is a good sign for IMT-GT as the
implementation of the remaining strategies depends on the implementation of the first-half of
IB2017-2021.
The vibrant economic condition in the subregion has resulted to constant increase in GDP and
decline in poverty and unemployment rates. The subregion also offers attractive investment
destination partly contributed from the effective spatial development. Its uniqueness in culture
diversity, rich in biodiversity and pristine beaches has managed to pull large number of tourists
visited the subregion. These strengths are the core of the subregion and should be further
strengthened in the future such as through the support from the government of the member
countries and close cooperation under IMT-GT that emphasize on the complementarities rather
than competitive between each other.
Based on the stock-take and review that has been conducted for each pillar of cooperation,
there is positive indication that the WGs will be able to achieve their target with adjustment to
current situation. However, several aspects such as unclear WG Indicator and baseline, no
mechanism in conducting and implementing convergence programmes, lack of related studies
to assist the WGs in preparing and developing suitable projects for the subregion and absent of
mechanism to monitor the progress of the projects, need to be addressed. These are the
common problems exist in each of the WGs and delaying in addressing these problems could
hamper the development in the subregion.
On the top of that, IMT-GT JBC should act as an effective institute to coordinate and justify the
proposal from private sector in the subregion. The requirement and necessity of business
players can be conveyed effectively through JBC platform. JBC as well should align their projects
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and activities with the WGs strategies. The involvement and recommendations of JBC will
enable the realization of government policy and project implementation.
Bottom-up mechanism that is practiced by the subregion is expected to reduce the gap and
create linkages between state/provinces and national government. In this regard, the IMT-GT
cooperation work as glue to ensure the seamless operationalisation of bottom-up approach as
a medium between these two institutions to ensure inclusive development. Although bottom-
up mechanism has been used by the subregion since its establishment, yet the application of
the mechanism is not widely use. The awareness on the subregion should be created and active
participation from the state/province and private sector should be encouraged to ensure
everyone take advantage on the ‘bottom-up’ mechanism to ensure the benefit for everyone.
To encourage the active participation from the province/state in the cooperation, Indonesia
and Malaysia may consider expediting the establishment of the secretariat of CMGF. As of now,
only Thailand has formed its dedicated secretariat for CMGF Thailand and the office has started
operationalizing since 2013. The information on IMT-GT as well as the update of WG activities
can be disseminated effectively through the dedicated secretariat office. The secretariat office
will also act as local think-tank in providing relevant information, involve in the project proposal
and design as well as use as the arm to monitor project implementation.
The rapid advancement in digital economy and the convergence of technologies including
disruptive technologies have impacted governments, businesses and individuals in areas
ranging from economic competitiveness to daily lifestyle. The IMT-GT subregional cooperation
is at risk of losing out on potential productivity gains in comparison to its regional peers. The
situation is exacerbated given the rapid intensification of digital technology driven by the
Fourth Industrial Revolution (4IR). IMT-GT shall focus efforts on enhancing capacity building to
increase the quality as well as the number of skilled labour to support innovation,
modernisation and adoption of new technology associated with 4IR. Greater collaboration
among IMT-GT stakeholders through various initiatives such as capacity building, internship
programmes and skills training for workers shall be continued and enhanced to meet the
industry specific talent requirements. This is imperative especially in embracing the 4IR where
skills demanded by the labour market are rapidly evolving.
In addition, SMEs in particular should be encouraged to continuously enhance capacity building
as well as accelerate technology adoption to grow at a faster rate and expand market outreach.
Post 4IR require the Government to rethink its policies on infrastructure, construction industry,
education, healthcare, public transport, employment market, and the public sector itself such
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as in the area of municipal services in order to embrace 4IR and to raise countries overall
competitiveness.
Capacity building remains one of the important elements in accelerating implementation of strategies /
actions under IB2017-2021. The working group is strongly recommended to strengthen collaboration
with, and take advantage of UNINET in capacity building programme and promote joint collaboration
between local government, private sector, and academia for technology transfer, knowledge sharing,
and innovation.
IB2017-2021 can be considered as the starting point of IMT-GT as it is the first 5-year plan for IMT-GT in
achieving its long-term vision, IMT-GT Vision 2036. The progress made in the first 2-year of the
implementation IB2017-2021 has charted the next step to achieve the 5-year goals. It is more on setting
up the mindset that align individual WG programmes to regional concept and encourage for a more
convergence projects that cover cross-sectoral issues. The progress in IMT-GT is affected by the
outbreak of Covid-19 that resulted the slow economy development in the member countries. Immediate
action should be taken to develop and improve existing mechanism and strengthen the cooperation
from within. Although it is unavoidable, the member countries should use IMT-GT as its strategic
subregional cooperation through its strength and opportunities to recover from the crisis. In conclusion,
the first two-year of the implementation of IB2017-2021 have shown positive progress however internal
issues such as mechanism should be developed to achieve Vision 2036.