review of imt-gt implementation blueprint 2017-2021

Review Implementation Blueprint 2017-2021

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REVIEW OF IMT-GT

IMPLEMENTATION BLUEPRINT

2017-2021


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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 ..............................................................................


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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


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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


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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.


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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


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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


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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


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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.


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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.


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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.


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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.


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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


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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.


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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-


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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


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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


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.


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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.


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


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


17-18 Oct 2019

5 IMT-GT Peranakan Nature Trail:

International Peranakan Festival

Indonesia, Malaysia

and Thailand


Oct 2019


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Ministry of Tourism

6 IMT-GT Fly and Rail tourism Keretapi Tanah

Melayu and Ministry

of Tourism, Arts and

Culture Malaysia


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


2019

8 Peranakan a colourful culture: The

Booklet of ASEAN Heritage Trails

Ministry of Tourism

and Sports Thailand


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


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


21

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


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.


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


23

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.


24

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.


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


25

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.


26

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.


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


27

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


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)


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


11. Chuping Valley Industrial Area (CVIA) Northern Corridor Implementation Authority (NCIA) Malaysia


12. Tok Bali Fisheries Park (TBIFP) ECERDC Status: On-Going 2017-2021


28

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


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.


29

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


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.


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


30

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.


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 –


31

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.



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


33


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).


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


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.



35

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


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


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).


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.


DESCRIPTION

1 Computer Networking Technology Manpower Department, Min of Human Resources Malaysia

Status: Completed September


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.


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.


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


39

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.


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


41

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


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


43

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


44

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


45

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


46

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.


47

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.

review of imt-gt implementation blueprint 2017-2021

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