INDONESIA-MALAYSIA-THAILAND GROWTH TRIANGLE

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INDONESIA-MALAYSIA-THAILAND GROWTH TRIANGLE SUB-REGIONAL COOPERATION 1

The History IMT-GT Initiated by former Prime Minister of Malaysia on 1993 Endorsed by former President of Indonesia and Prime Minister of Thailand on 1993 in Langkawi, Malaysia H.E. Suharto H.E. Tun Dr. Mahathir Mohammad H.E. Mr. Chuan Leekpai 2

History of IMT-GT Cooperation Started in 1993, among border states & provinces only; North Sumatera: Aceh, Riau & Riau Island Malaysia: Kelantan, Perak, Kedah, Perlis & Penang Thailand: Narathiwat, Pattani, Yala, Songkhla & Satun Currently: All 10 provinces in Sumatera; All 14 provinces in southern Thailand; 8 states in P. Malaysia (Not Include Terengganu, Pahang, Johor) 3

West Sumatera Aceh Bangka Belitung Surat Thani Nakhon Si Thammarat Narathiwat North Sumatera Bengkulu Ranong Pattani INDONESIA Riau Islands Jambi Phuket Phattalung Riau South Sumatera Lampung Phangnga THAILAND Satun Kelantan Melaka Negeri Sembilan Krabi Chumpon Yala Trang Songkhla Perlis MALAYSIA Selangor Kedah Penang Perak Total Population = 69.5 Million 32 Provinces & States Indonesia = 10 Provinces Malaysia = 8 States Thailand = 14 Provinces

RATIONAL OF COOPERATION Character many economic complementarities, geographical proximity, close historical, cultural and linguistic ties Potentials for development Population and market large amounts of land, abundant & relatively cheap labour, & rich natural resources over 70 million people 5

GUIDING PRINCIPLES OF IMT-GT MISSION To promote economic cooperation among the states and provinces of the subregion by accelerating private sector-led economic growth through the increase of intra-imt-gt and inter-imt-gt trade and investment. VISION The IMT-GT envisions a seamless, progressive, prosperous and peaceful subregion with improved quality of life. OBJECTIVES To narrow development gap between these subregions and the more developed areas of the respective countries; To directly improve the quality of life of the population of the subregion. The private sector should be the main engine of growth, with the government proactively promoting and enabling environment and providing supportive infrastructure. 6

IMT-GT INSTITUTIONAL MECHANISM 7

SIX FOCUSED AREAS OF COOPERATION AREAS OF COOPERATION WORKING GROUP LEAD COUNTRY Halal Products & Services Human Resources Development Trade & Investment IMT-GT Tourism Agriculture, Agro-Base Industry & Environment Infrastructure Transport & Energy Infrastructure and Transport WGIT Thailand Trade & Investment WGTI Thailand Tourism WGT Indonesia Halal Products & Services Agriculture, Agro-Based Industry & Environment Human Resource Development WGHAPAS WGAAE WGHRD Indonesia Malaysia Malaysia 8

IMPLEMENTATION BLUEPRINT (IB) 2012-2016 9

OVERVIEW OF THE IMT-GT IB 2012-2016 Retains strategic thrusts of the Roadmap 2007-2011 supported by the adopted sector strategies Has connectivity (both hardware and software) as overarching objective Has the 12 flagship programs as anchors for the areas of cooperation in the IB Serves to catalyze investments from the private sector in member states/provinces, including from small and medium enterprises Focuses on implementation of projects, e.g. secure financing commitments, detailed activities of each project; Two-year Rolling Pipeline (1 st RP: 2012-2013, 2 nd RP: 2013-2014 & etc) 10

IB: STRATEGIC, OPERATIONAL & RESULT FRAMEWORK

(i) The IMT-GT Development Cooperation(1993-2016) a seamless, progressive, prosperous and peaceful sub-region with improved quality of life. SUMMIT(9) MM(20)/SOM(21) CMGF(11)CMGF(R)(4) JBC(4) 6WG(5-9) NS CIMT Five Strategic Thrusts - facilitate and promote intra- and inter-imt-gt trade and investment; - promote the growth of agriculture, agro-industry, and tourism; - strengthen infrastructure linkages and support to the integration of the IMT-GT sub-region; - develop human resource and skills competencies, enhance mobility of labor, and strengthen environment and natural resource management; and - strengthen institutional arrangements and mechanisms for cooperation, including public private sector collaboration, participation of stakeholders at the local level, and the mobilization of support from development partners. Indonesia 10 provinces Malaysia 8 states Thailand 14 Provinces 73 Sectoral Projects 4 Signature Projects 11 PCP projects Extended Songkhla Penang Medan;(ii) Straits of Malacca Corridor(iii)Banda Aceh Medan Pekanbaru Palembang (iv) Melaka Dumai (v) Ranong Phuket Aceh sector WGIT WGTI WGAAE WG HAPAS WG Tourism WG HRD CMGF IB List Post PSPM/MTR New Inclu sion s Deli ste d Tot al RP 2014-2016 Status of Implement ation Compl eted Ong oin g 23 5 2 26 10 0 8 10 1 0 11 7 2 5 10 4 2 12 9 0 7 9 0 1 8 8 2 6 5 8 0 13 13 0 8 2 0 0 2 2 0 2 0 1 0 1 1 0 1 TOTAL 59 19 5 73 50 4 37

TRADE & INVESTMENT Simplification of CIQ Regulations and Procedures. CIQ Complex Development Exchange of Study Visits of CIQ Personnel. TOURISM AGRICULTURE & AGRO-BASED INDUSTRY HALAL PRODUCT & SERVICES HUMAN RESOURCE DEVELOPMENT Joint tourism promotion and marketing for IMT-GT as a tourist destination: IMT-GT Old Town Heritage IMT-GT Tourism Trail IMT-GT Diving Attractions/Destinations IMT-GT Rubber Corridor IMT-GT Network for Animal Production and Biotechnology The development of the Surath Red Goat Breed IMT-GT Super Fruits & Vegetable Development of Standards and Certification for Halal Integrity : The Integrated Halal Superhighway The Standardized Protocol for Halal Electronic Resource Exchange (SPHERE) Halal Industry : Development of Halal Parks Training for IMT-GT executives and mid-management. Training of trainers in Under Water Welding Training of trainers in Malay Language

IMT-GT CONNECTIVITY CORRIDORS 5 1 IMT-GT CONNECTIVITY CORRIDORS 1 2 4 3 1 2 3 4 5 Extended Songkhla- Penang-Medan Straits of Malacca Banda Aceh-Medan- Dumai-Palembang Melaka-Dumai Ranong Phuket-Aceh Economic Corridor 14

Southern Thailand Ports Development Program -Phuket Port -Naklua Port Inland Container Depot (Tung Song) ICQS Bukit Kayu Hitam Hat Yai-Sadao Toll Road Development of Aceh Highway Facilities -Bandah Aceh- K.Simpang Sumatra Ports Development Project -Ulee Lheue Port -Malahayati Port -Belawan Port -Kuala Enok Port Sumatra Toll Roads Project -Palembang and Indralaja Toll Road Southerly section of the Eastern Highway (Bandar Lampung- Bakauheni) to Java Project Melaka-Pekanbaru Power Interconnection Melaka-Dumai Economic Corridor Multimodal Transport Project -Dumai Port -Pekanbaru-Dumai Road 15

INTEGRATED ICQS AT BUKIT KAYU HITAM - SADAO THAILAND SADAO BUKIT KAYU HITAM Integrated ICQS at Bukit Kayu Hitam Phase 1: preliminary works planned at 4%, actual is 9% (5% ahead of time) Phase 2: demolishment and piling. 52% of construction targeted to be completed by December 2015. Project completion is expected by 31 May 2017. 16

SADAO-BUKIT KAYU HITAM - SPECIAL BORDER ECONOMIC ZONE AREAS OF COOPERATION : 1. Facilitate and Promote Cross Border Trade & Investment and Tourism 2. Promote Growth of Agriculture and Agrobased Industry 3. Strengthen Infrastructure Support and Connectivity 4. Address Human Resources Development/ Environment and Natural Resources Management Concerns GOALS : Accelerated and Sustained Economic Growth Reduced Poverty and Improved Quality of Life Peace and Stability 5. Strengthen Institutional Support, including Enhancement of Public- Private Sector Collaboration 17

Proposed Motorway Route HAT YAI-SADAO INTERCITY MOTORWAY Songkhla City Hat-Yai City Connect Thailand and Malaysia through Sadao (Jung Loan) and Padang Besar Customs house. The feasibility study was completed in March 2015. Padang Besar Sadao Border Checkpoint Sadao The project detailed design is expected to commence in June 2015, while the project cost is approximately 23,900 million baht or USD725 million. 18

DEVELOPMENT OF KANTANG COASTAL PORT AT NAKLUA Naklua Port The construction started in 2012 and already completed in late 2014. Thai Marine Department is in the process to transfer the port to Treasury Department by April 2015. 19

INFRASTRUCTURE PROJECT IN SUMATRA Existing Road Planned Highway Medan - Aceh Pekanbaru - Medan Consist of: Bakauheni Banda Aceh corridor along eastern Sumatera corridor with a length ± 2,017 km Feeder with a length of ± 720 km Connecting 8 National Activity Centers, 6 airports, and 7 main seaports. Connected with Sunda Strait Bridge and Trans Java Toll Road. Indralaya - Pekanbaru Bakaheuni - Indralaya National Activity Center 20

MELAKA DUMAI RO-RO Dumai Melaka Dumai RO-RO Terminal 95% completed Pekanbaru-Dumai Road; Land acquisition is 15% completed; Contractor appointed State Government of Melaka will continue to develop the Tanjung Bruas Port for RORO services before 2018 21

MELAKA PEKANBARU POWER INTERCONNECTIVITY 30 km 52 km Teluk Gong A seabed survey completed by surveyor and is expected to be finalized in mid 2015 The commercial operation is to be commenced in October 2020. Garuda Sakti 170 km The total project cost is USD$500 million and power exchange is 600MW. Bukit Assam Coal Mine HVAC Overhead Transmission Line 170 km 270km HVDC Overhead Transmission Line Mundan Landing Point 30km HVDC Overhead Transmission Line P. Rupat Landing Point Alohong Landing Point National Border Telok Gong Landing Point Telok Gong Converter Station Peranap Mine Mouth CFPP Garuda Sakti Garuda Sakti Converter Station near Peranap Sumatera Selat Rupat Pulau Rupat Selat Melaka Melaka 5km 53km

Introduction Critical to meet the challenges ahead, the Leaders decided at the 2nd IMT-GT Summit in January 2007 in the Philippines, to establish a coordinating and monitoring centre for IMT-GT. The Centre for IMT-GT Subregional Cooperation (CIMT) was officially established in August 2007 through the goodwill and sponsorship of the Malaysian Government in hosting and according it an International Organisation status.

Establishment of CIMT 2007 2 nd IMT-GT Leaders Summit agreed on the need to establish IMT-GT Sub-regional Secretariat 2008 SOM finalized the draft text of the Establishment Agreement of Center of IMT-GT (CIMT) as the subregional Secretariat First draft of Business Plan for CIMT was prepared 2012 6 TH IMT-GT Leaders Summit directed officials to accelerate signing of the CIMT Agreement to ensure effective implementation of Implementation Blueprint 2013 CIMT Establishment Agreement was signed on 25 April 2013 in Brunei Darussalam by IMT-GT Ministers

CIMT Establishment Agreement Signing Ceremony 25 April 2013 in Brunei Darussalam

INTERNATIONAL ORGANISATION STATUS CIMT was officially gazetted as an International Organisation in Malaysia on 21 June 2013.

CIMT OFFICE Centre for IMT-GT Subregional Cooperation (CIMT) Office 3A, Level 3, Block C, Menara PjH, Jalan Tun Abdul Razak, Precint 2, 62100 Putrajaya, MALAYSIA Tel: +603-8893 0925 Fax: +603-8861 8202

INTERIM ORGANISATION STRUCTURE Advisory Committee Director Office Assistant (PA) Deputy Director Deputy Director Programme Coordinator Programme Coordinator ICT & Database Programme Coordinator Programme Coordinator Office Assistant (Clerk) Driver

STAFFING (as of June 2015) Mr. Pairote Potivong Director Mr. Balamurugan Ratha Krishnan Deputy Director Ms. Regina Pricilla Deputy Director Ms. Hamiliana Ali Executive Officer Ms.Sandra Priya Aravindarashan Coordinating Officer Financial Officer Coordinating Officer Coordinating Officer Coordinating Officer Other Staff will recruited accordingly

THANK YOU