Review and Assessment of the Indonesia–Malaysia–Thailand Growth Triangle Economic Corridors: Thailand Country Report
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Review and Assessment of the Indonesia–Malaysia–Thailand Growth Triangle Economic Corridors - Asian Development Bank
CHAPTER 1
INTRODUCTION
Overview
On 1 October 2018 in Melaka, Malaysia, the 24th Indonesia–Malaysia–Thailand Growth Triangle (IMT-GT) Ministerial Meeting directed a review of existing IMT-GT economic corridors (ECs), and a study of the proposed sixth corridor linking Pattani–Yala–Narathiwat in Thailand with Perak and Kelantan in Malaysia, and with southern Sumatera in Indonesia. The countries requested technical assistance from the Asian Development Bank (ADB) in conducting this review.¹
The economic corridor approach to development was first emphasized in the IMT-GT Road Map 2007–2011 as a key anchor for clustering major economic activities in the subregion. The IMT-GT Implementation Blueprint 2012–2016—the successor to the road map—included economic corridor development programs and projects among the flagship initiatives in the transport and energy sector. The importance of economic corridors was carried over to the Implementation Blueprint 2017–2021, which reaffirmed economic corridor development as a spatial framework to help achieve the IMT-GT 2036 Vision.
The IMT-GT strategic framework documents over the past years indicate the absence of a definitive framework for economic corridor development at a subregional level. The progress achieved so far is a result of independent national initiatives vetted through the IMT-GT platform, rather than from deliberate, evidence-based, corridor-wide subregional planning. This review is the first endeavor that looks at economic corridors from a wider perspective since it became a focus of IMT-GT economic cooperation in 2007.
Study Objectives
In assessing the IMT-GT economic corridors, this review aims to:
(i)analyze the corridors’ connections by road, rail, sea, and air;
(ii)identify gaps in such connections, and recommend new routes for expansion of economic opportunities;
(iii)review the proposed sixth EC, and recommend its configuration;
(iv)review links between ECs and the emerging subregional corridor network;
(v)review ECs from a value chain perspective;
(vi)recommend ways to improve EC development.
Methodology
As an initial activity, the study identified specific nodes in each corridor to establish the role of different economic units in relation to the major transport backbone and gateways. The nodes provided the reference points for assessing connectivity in the corridor. It also provided the basis for identifying linkages with potential nodes by expanding the corridor configuration based on emerging national strategies and economic opportunities. The nodes were classified according to the roles they perform: capital cities and urban areas, commercial nodes, border crossing points (BCPs), maritime gateway ports, tourism nodes, and interlink nodes.
The study considered possibilities for expanding existing corridors to other provinces and states. The motivation was to loop in strategically positioned areas in the government’s spatial strategy into the regional economic corridors to derive additional benefits from continuity and scale effects. The expanded corridor would optimize regional spatial use by taking advantage of new production, growth and logistics centers located in a wider area, enhance supply chain opportunities, and contribute to a more equitable distribution of benefits. The additional provinces and states can upgrade to the main logistics routes that connect to other corridor networks, thus diversifying economic and social outcomes.
The study also looked at the value chain² of three major products in IMT-GT—palm oil, rubber, and halal foods—to get a broad perspective on the geography of their production, processing, and distribution components in the economic corridors. The geography of value chain components is the basis for determining the appropriate interventions to make the chain more efficient and their products, more competitive.
The study is qualitative and draws its observations and findings from inferences and interpretation of data collected from official and other sources. Desk research was conducted on IMT-GT documents, reports of meetings, references, and research materials. Fieldwork in Thailand was conducted with the team leader on 11–15 November 2019. The ministries and agencies involved in providing relevant information during the fieldwork are listed in Appendix 2.
The consultations covered many of the corridor provinces and involved meetings with the National Secretariat of Thailand, relevant line ministries, bodies responsible for spatial development programs or national corridors, provincial and state planning units, ports authorities, customs houses at BCPs, and the private sector (including representatives from the IMT-GT Joint Business Council [JBC]).
Several consultations with the national secretariat were also conducted in the course of the study. The representatives from various ministries and agencies that participated during the consultations with the national secretariat are also listed in Appendix 2.
Structure of the Report
The Thailand country report, which has been incorporated into the integrative report, is divided into eight chapters:
(i)Introduction (Chapter 1),
(ii)Development Context (Chapter